TYD vs. QQQ
Compare and contrast key facts about Direxion Daily 7-10 Year Treasury Bull 3X (TYD) and Invesco QQQ (QQQ).
TYD and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TYD is a passively managed fund by Direxion that tracks the performance of the NYSE 7-10 Year Treasury Bond Index. It was launched on Apr 16, 2009. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. Both TYD and QQQ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: TYD or QQQ.
Key characteristics
| TYD | QQQ | |
|---|---|---|
| YTD Return | -8.94% | 26.09% |
| 1Y Return | 7.55% | 39.88% |
| 3Y Return (Ann) | -21.07% | 9.90% |
| 5Y Return (Ann) | -10.71% | 21.46% |
| 10Y Return (Ann) | -2.75% | 18.52% |
| Sharpe Ratio | 0.20 | 2.22 |
| Sortino Ratio | 0.43 | 2.92 |
| Omega Ratio | 1.05 | 1.40 |
| Calmar Ratio | 0.07 | 2.86 |
| Martin Ratio | 0.47 | 10.44 |
| Ulcer Index | 9.38% | 3.72% |
| Daily Std Dev | 21.65% | 17.47% |
| Max Drawdown | -64.28% | -82.98% |
| Current Drawdown | -58.84% | 0.00% |
Correlation
The correlation between TYD and QQQ is -0.19. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.
Performance
TYD vs. QQQ - Performance Comparison
In the year-to-date period, TYD achieves a -8.94% return, which is significantly lower than QQQ's 26.09% return. Over the past 10 years, TYD has underperformed QQQ with an annualized return of -2.75%, while QQQ has yielded a comparatively higher 18.52% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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TYD vs. QQQ - Expense Ratio Comparison
TYD has a 1.09% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Risk-Adjusted Performance
TYD vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily 7-10 Year Treasury Bull 3X (TYD) and Invesco QQQ (QQQ). 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.
Dividends
TYD vs. QQQ - Dividend Comparison
TYD's dividend yield for the trailing twelve months is around 3.14%, more than QQQ's 0.59% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TYD Direxion Daily 7-10 Year Treasury Bull 3X | 3.14% | 2.71% | 0.55% | 0.00% | 9.80% | 0.92% | 1.10% | 0.01% | 6.84% | 1.64% | 0.00% | 0.00% |
QQQ Invesco QQQ | 0.59% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.02% |
Drawdowns
TYD vs. QQQ - Drawdown Comparison
The maximum TYD drawdown since its inception was -64.28%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for TYD and QQQ. For additional features, visit the drawdowns tool.
Volatility
TYD vs. QQQ - Volatility Comparison
Direxion Daily 7-10 Year Treasury Bull 3X (TYD) has a higher volatility of 5.98% compared to Invesco QQQ (QQQ) at 5.17%. This indicates that TYD's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.