TECL vs VOO
Direxion Daily Technology Bull 3X ETF vs Vanguard S&P 500 ETF
Which is better, TECL or VOO?
Trading-Leveraged Equity against Large Cap Blend.
VOO has a lower expense ratio. TECL led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 62.3%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | TECL | VOO |
|---|---|---|
| Expense Ratio | 0.87% | 0.03%Best |
| AUM | $5.7B | $997.4B |
| Dividend Yield | 4.11% | 1.04% |
| Holdings | 87 | 509 |
| YTD Return | +79.26%Best | +12.37% |
| 1Y Return | +92.70%Best | +16.61% |
| 3Y Return (annualized) | +68.16%Best | +21.37% |
| 5Y Return (annualized) | +30.55%Best | +13.49% |
| Volatility (annualized) | 59.8% | 14.1%Best |
| Max Drawdown | -78.0% | -34.3%Best |
| $10,000 over 5 years | $37,921Best | $18,827 |
| Top 10 Weight | 62.3% | 37.6%Best |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) |
| Category | Alternative | Equity |
| Style | Trading-Leveraged Equity | Large Cap Blend |
| Inception | Dec 17, 2008 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Jun 29, 2012 to Sep 18, 2026 (14.2 years).
TECL vs VOO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
TECL vs VOO Performance
Direxion Daily Technology Bull 3X ETF (TECL) is an ETF from Direxion Shares ETF Trust and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year TECL returned +92.70% while VOO returned +16.61%. Year to date, TECL is up 79.26% versus a gain of 12.37% for VOO.
Over three years, TECL compounded at +68.16% per year against +21.37% for VOO; over five years the annualized figures are +30.55% and +13.49% respectively. Across the full 14-year window we track, TECL has the edge at +44.60% annualized vs +13.55%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TECL has been the more volatile fund, with annualized monthly volatility of 59.8% compared with 14.1% for VOO. 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 -78.0% for TECL and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
TECL charges 0.87% per year while VOO charges 0.03%. On a $10,000 position that is $87 vs $3 annually, a gap of $84 per year that compounds over a long holding period. On income, TECL currently yields 4.11% against 1.04% for VOO.
Holdings Overlap
70.7% of TECL's money is in holdings VOO also owns. 36.5% of VOO's money is in holdings TECL also owns.
Most of TECL is already inside VOO. Owning both mostly buys the same companies twice.
71 positions in common, counted across the 76 positions we hold weights for in TECL and 494 in VOO, against full books of 87 and 509.
What only one of them owns
Our book lists 416 positions for VOO that do not appear in our book for TECL (62.7% of the fund), and 5 for TECL that do not appear in VOO (25.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in TECL | Weight in VOO | Difference |
|---|---|---|---|
| NVDANvidia Corp | 10.23% | 7.55% | 2.68% |
| AAPLApple, Inc | 9.27% | 7.05% | 2.22% |
| MSFTMicrosoft Corp | 7.23% | 5.36% | 1.87% |
| AVGOBroadcom Inc | 3.40% | 2.86% | 0.54% |
| MUMicron Technology, Inc. | 2.81% | 1.44% | 1.37% |
| AMDAdvanced Micro Devices Inc | 2.77% | 1.21% | 1.56% |
| CSCOCisco Systems Inc. - Ordinary Shares | 2.06% | 0.71% | 1.35% |
| INTCIntel Corporation | 2.08% | 0.66% | 1.42% |
| PLTRPalantir Technologies Inc | 1.96% | 0.44% | 1.52% |
| LRCXLam Research Corp | 1.72% | 0.57% | 1.15% |
70.7% of TECL is already inside VOO.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, TECL or VOO?
TECL has an expense ratio of 0.87% while VOO charges 0.03%. VOO is the cheaper option, by $84 a year on a $10,000 investment.
Which performed better, TECL or VOO?
Over the past year TECL returned +92.70% vs +16.61% for VOO, so TECL leads on 1-year performance. Over the longest common window we track (14 years), TECL annualized +44.60% vs +13.55% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, TECL or VOO?
TECL has been the more volatile fund at 59.8% annualized versus 14.1% for VOO. Worst drawdown: TECL -78.0% vs VOO -34.3%.
Should I hold both TECL and VOO?
TECL and VOO have a monthly-return correlation of 0.87, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between TECL and VOO?
70.7% of TECL's money is in holdings VOO also owns. 36.5% of VOO's is in holdings TECL also owns. They hold 71 positions in common, counted across the 76 positions we hold weights for in TECL and 494 in VOO.
Which pays a higher dividend, TECL or VOO?
TECL yields 4.11% while VOO yields 1.04%, so TECL currently pays the higher dividend yield.
Is VOO better than TECL?
VOO has a lower expense ratio. TECL led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 62.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.