TRFM vs. TECL

Last updated Jun 5, 2026

TRFM (AAM Transformers ETF) and TECL (Direxion Daily Technology Bull 3X Shares) are both exchange-traded funds - TRFM is a Technology Equities fund tracking the Pence Transformers Index - Benchmark TR Gross, while TECL is a Leveraged Equities fund tracking the Technology Select Sector Index (300%). Both are passively managed. Over the past 3 years, TRFM returned 31.42%/yr vs 78.93%/yr for TECL. Their correlation of 0.87 suggests significant overlap in exposure. TRFM charges 0.49%/yr vs 0.91%/yr for TECL.

Performance

TRFM vs. TECL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AAM Transformers ETF (TRFM) and Direxion Daily Technology Bull 3X Shares (TECL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TRFM achieves a 29.81% return, which is significantly lower than TECL's 115.57% return.

TRFM

• 1D: -0.38%
• 1M: 10.30%
• YTD: 29.81%
• 6M: 27.54%
• 1Y: 52.18%
• 3Y*: 31.42%
• 5Y*: —
• 10Y*: —

TECL

• 1D: -4.56%
• 1M: 55.10%
• YTD: 115.57%
• 6M: 106.65%
• 1Y: 249.35%
• 3Y*: 78.93%
• 5Y*: 42.11%
• 10Y*: 53.62%

*Multi-year figures are annualized to reflect compound growth (CAGR)

TRFM vs. TECL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
TRFM AAM Transformers ETF	29.81%	25.76%	19.96%	44.71%	-7.38%
TECL Direxion Daily Technology Bull 3X Shares	115.57%	38.60%	36.15%	203.14%	-24.62%

Correlation

The correlation between TRFM and TECL is 0.88, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (All Time) Calculated using the full available price history since Jul 13, 2022	0.87

The correlation between TRFM and TECL has been stable across timeframes, ranging from 0.86 to 0.88 - a consistent structural relationship.

TRFM vs. TECL - Sectors Allocation Comparison

Sectors	TRFM	TECL
Technology	53.3%	20.4%
Consumer Cyclical	17.7%	-
Communication Services	12.3%	-
Industrials	7.2%	0.0%
Energy	3.5%	0.0%
Financial Services	2.8%	-
Utilities	1.7%	-
Basic Materials	1.2%	-
Healthcare	0.2%	-
Consumer Defensive	-	-
Real Estate	-	-

Return for Risk

TRFM vs. TECL — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TRFM

TRFM Risk / Return Rank: 71
TRFM Sharpe Ratio Rank: 73
TRFM Sortino Ratio Rank: 66
TRFM Omega Ratio Rank: 63
TRFM Calmar Ratio Rank: 79
TRFM Martin Ratio Rank: 73

TECL

TECL Risk / Return Rank: 84
TECL Sharpe Ratio Rank: 96
TECL Sortino Ratio Rank: 79
TECL Omega Ratio Rank: 78
TECL Calmar Ratio Rank: 89
TECL Martin Ratio Rank: 80

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TRFM vs. TECL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AAM Transformers ETF (TRFM) and Direxion Daily Technology Bull 3X Shares (TECL). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	TRFM	TECL	Difference
Sharpe ratio: Return per unit of total volatility	2.34	4.03	-1.70
Sortino ratio: Return per unit of downside risk	2.97	3.52	-0.55
Omega ratio: Gain probability vs. loss probability	1.38	1.46	-0.08
Calmar ratio: Return relative to maximum drawdown	4.04	5.39	-1.35
Martin ratio: Return relative to average drawdown	13.69	15.48	-1.78
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TRFM vs. TECL - Sharpe Ratio Comparison

The current TRFM Sharpe Ratio is 2.34, which is lower than the TECL Sharpe Ratio of 4.03. The chart below compares the historical Sharpe Ratios of TRFM and TECL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	TRFM	TECL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.34	4.03	-1.70
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.57	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.74	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.05	0.76	+0.29

Drawdowns

TRFM vs. TECL - Drawdown Comparison

The maximum TRFM drawdown since its inception was -28.40%, smaller than the maximum TECL drawdown of -77.96%. Use the drawdown chart below to compare losses from any high point for TRFM and TECL.

Drawdown Indicators

	TRFM	TECL	Difference
Max Drawdown Largest peak-to-trough decline	-28.40%	-77.96%	+49.56%
Max Drawdown (1Y) Largest decline over 1 year	-12.99%	-46.58%	+33.59%
Max Drawdown (3Y) Largest decline over 3 years	-28.40%	-66.58%	+38.18%
Max Drawdown (5Y) Largest decline over 5 years	—	-77.96%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-77.96%	—
Current Drawdown Current decline from peak	-1.60%	-7.42%	+5.82%
Average Drawdown Average peak-to-trough decline	-6.61%	-18.38%	+11.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.82%	16.19%	-12.37%

Volatility

TRFM vs. TECL - Volatility Comparison

The current volatility for AAM Transformers ETF (TRFM) is 7.33%, while Direxion Daily Technology Bull 3X Shares (TECL) has a volatility of 21.53%. This indicates that TRFM experiences smaller price fluctuations and is considered to be less risky than TECL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TRFM	TECL	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.33%	21.53%	-14.20%
Volatility (6M) Calculated over the trailing 6-month period	17.46%	50.05%	-32.59%
Volatility (1Y) Calculated over the trailing 1-year period	22.44%	62.27%	-39.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.92%	74.08%	-47.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.92%	72.35%	-45.43%

TRFM vs. TECL - Expense Ratio Comparison

TRFM has a 0.49% expense ratio, which is lower than TECL's 0.91% expense ratio.

Dividends

TRFM vs. TECL - Dividend Comparison

TRFM's dividend yield for the trailing twelve months is around 0.13%, less than TECL's 3.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
TECL Direxion Daily Technology Bull 3X Shares	3.30%	7.19%	0.29%	0.28%	0.22%	0.32%	0.52%	0.25%	0.47%	0.10%
TRFM AAM Transformers ETF	0.13%	0.17%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TRFM and TECL in my portfolio?

TRFM and TECL have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TRFM or TECL?

TECL has higher volatility (21.53%) compared to TRFM (7.33%). In terms of maximum drawdown, TRFM dropped -28.40% vs TECL's -77.96%.

Which ETF is better, TRFM or TECL?

On 3-year performance, TECL leads with 78.93% vs 31.42% for TRFM. On fees, TRFM is cheaper at 0.49% per year. On volatility, TRFM has been the lower-risk option at 7.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TRFM or TECL?

Over the 3-year period, TECL has performed better with a 78.93% return vs 31.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TRFM or TECL?

TRFM is cheaper with a 0.49% expense ratio, compared with 0.91% for TECL.

Which ETF pays a higher dividend yield, TRFM or TECL?

TECL has the higher dividend yield at 3.30%, compared with 0.13% for TRFM.

What is the main difference between TRFM and TECL?

TRFM is categorized as Technology Equities, while TECL is Leveraged Equities. TRFM tracks Pence Transformers Index - Benchmark TR Gross, while TECL tracks Technology Select Sector Index (300%). They also come from different issuers: AAM and Direxion. Their fees differ too: 0.49% for TRFM and 0.91% for TECL.

Which has better risk-adjusted returns?

TECL currently has the higher Sharpe Ratio (4.03 vs 2.34), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.