QQQ vs TECL
Invesco QQQ Trust, Series 1 vs Direxion Daily Technology Bull 3X ETF
Quick Verdict
QQQ has a lower expense ratio. TECL delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | TECL | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.87% | |
| AUM | $455.8B | $5.0B | |
| Dividend Yield | 0.41% | 3.62% | |
| Holdings | 108 | 86 | |
| YTD Return | +19.68% | +87.04% | |
| 1Y Return | +26.75% | +115.28% | |
| 3Y Return (annualized) | +26.25% | +69.27% | |
| 5Y Return (annualized) | +15.39% | +30.23% | |
| Volatility (annualized) | 30.6% | 60.2% | |
| Max Drawdown | -83.0% | -78.0% | |
| Fund Family | Invesco (US) | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Dec 17, 2008 |
QQQ vs TECL Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Direxion Daily Technology Bull 3X ETF (TECL) is a ETF from Direxion Shares ETF Trust. Over the past year QQQ returned +26.75% while TECL returned +115.28%. Year to date, QQQ is up 19.68% versus a gain of 87.04% for TECL.
Over three years, QQQ compounded at +26.25% per year against +69.27% for TECL; over five years the annualized figures are +15.39% and +30.23% respectively. Across the full 14-year window we track, TECL has the edge at +45.41% annualized vs +13.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TECL has been the more volatile fund, with annualized monthly volatility of 60.2% compared with 30.6% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -83.0% for QQQ and -78.0% for TECL. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QQQ charges 0.18% per year while TECL charges 0.87%. On a $10,000 position that is $18 vs $87 annually, a gap of $69 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 3.62% for TECL.
Holdings Overlap
QQQ and TECL share 36 holdings out of 145 unique holdings combined, representing a 52.6% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, QQQ or TECL?
QQQ has an expense ratio of 0.18% while TECL charges 0.87%. QQQ is the cheaper option. On a $10,000 investment, that is $69 per year of difference.
Which performed better, QQQ or TECL?
Over the past year QQQ returned +26.75% vs +115.28% for TECL, so TECL leads on 1-year performance. Over the longest common window we track (14 years), QQQ annualized +13.15% vs +45.41% for TECL. Past performance does not guarantee future results.
Which is riskier, QQQ or TECL?
TECL has been the more volatile fund at 60.2% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs TECL -78.0%.
Should I hold both QQQ and TECL?
QQQ and TECL have a monthly-return correlation of 0.95, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between QQQ and TECL?
QQQ and TECL share 36 common holdings with a 52.6% weight overlap. Combined, they hold 145 unique securities.
Which pays a higher dividend, QQQ or TECL?
QQQ yields 0.41% while TECL yields 3.62%, so TECL currently pays the higher dividend yield.
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