TYO vs. SQQQ
Compare and contrast key facts about Direxion Daily 7-10 Year Treasury Bear 3X (TYO) and ProShares UltraPro Short QQQ (SQQQ).
TYO and SQQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TYO 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. SQQQ is a passively managed fund by ProShares that tracks the performance of the NASDAQ-100 Index (-300%). It was launched on Feb 9, 2010. Both TYO and SQQQ 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: TYO or SQQQ.
Key characteristics
| TYO | SQQQ | |
|---|---|---|
| YTD Return | 15.49% | -50.78% |
| 1Y Return | -2.19% | -61.24% |
| 3Y Return (Ann) | 21.94% | -39.55% |
| 5Y Return (Ann) | 7.73% | -59.81% |
| 10Y Return (Ann) | -2.02% | -52.50% |
| Sharpe Ratio | -0.09 | -1.17 |
| Sortino Ratio | 0.03 | -2.12 |
| Omega Ratio | 1.00 | 0.77 |
| Calmar Ratio | -0.02 | -0.61 |
| Martin Ratio | -0.17 | -1.49 |
| Ulcer Index | 11.01% | 40.86% |
| Daily Std Dev | 21.94% | 51.94% |
| Max Drawdown | -89.25% | -100.00% |
| Current Drawdown | -77.80% | -100.00% |
Correlation
The correlation between TYO and SQQQ is -0.17. 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
TYO vs. SQQQ - Performance Comparison
In the year-to-date period, TYO achieves a 15.49% return, which is significantly higher than SQQQ's -50.78% return. Over the past 10 years, TYO has outperformed SQQQ with an annualized return of -2.02%, while SQQQ has yielded a comparatively lower -52.50% 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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TYO vs. SQQQ - Expense Ratio Comparison
TYO has a 1.08% expense ratio, which is higher than SQQQ's 0.95% expense ratio.
Risk-Adjusted Performance
TYO vs. SQQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily 7-10 Year Treasury Bear 3X (TYO) and ProShares UltraPro Short QQQ (SQQQ). 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
TYO vs. SQQQ - Dividend Comparison
TYO's dividend yield for the trailing twelve months is around 4.51%, less than SQQQ's 10.00% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|
TYO Direxion Daily 7-10 Year Treasury Bear 3X | 4.51% | 3.62% | 0.09% | 0.00% | 0.37% | 1.57% | 0.32% | 0.00% |
SQQQ ProShares UltraPro Short QQQ | 10.00% | 8.01% | 0.06% | 0.00% | 2.15% | 2.92% | 1.47% | 0.14% |
Drawdowns
TYO vs. SQQQ - Drawdown Comparison
The maximum TYO drawdown since its inception was -89.25%, smaller than the maximum SQQQ drawdown of -100.00%. Use the drawdown chart below to compare losses from any high point for TYO and SQQQ. For additional features, visit the drawdowns tool.
Volatility
TYO vs. SQQQ - Volatility Comparison
The current volatility for Direxion Daily 7-10 Year Treasury Bear 3X (TYO) is 6.43%, while ProShares UltraPro Short QQQ (SQQQ) has a volatility of 15.44%. This indicates that TYO experiences smaller price fluctuations and is considered to be less risky than SQQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.