TECL vs VOO
Direxion Daily Technology Bull 3X ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. TECL delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | TECL | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.87% | 0.03% | |
| AUM | $5.0B | $979.0B | |
| Dividend Yield | 3.62% | 1.09% | |
| Holdings | 86 | 509 | |
| YTD Return | +79.46% | +13.80% | |
| 1Y Return | +117.94% | +23.71% | |
| 3Y Return (annualized) | +66.03% | +21.50% | |
| 5Y Return (annualized) | +29.51% | +13.44% | |
| Volatility (annualized) | 60.1% | 14.1% | |
| Max Drawdown | -78.0% | -34.3% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 17, 2008 | Sep 7, 2010 |
TECL vs VOO Performance
Direxion Daily Technology Bull 3X ETF (TECL) is a ETF from Direxion Shares ETF Trust and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year TECL returned +117.94% while VOO returned +23.71%. Year to date, TECL is up 79.46% versus a gain of 13.80% for VOO.
Over three years, TECL compounded at +66.03% per year against +21.50% for VOO; over five years the annualized figures are +29.51% and +13.44% respectively. Across the full 14-year window we track, TECL has the edge at +45.05% annualized vs +13.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TECL has been the more volatile fund, with annualized monthly volatility of 60.1% 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 worth weighing if you expect to sell during market stress rather than ride it out.
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 3.62% against 1.09% for VOO.
Holdings Overlap
TECL and VOO share 72 holdings out of 511 unique holdings combined, representing a 37.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $84 per year of difference.
Which performed better, TECL or VOO?
Over the past year TECL returned +117.94% vs +23.71% for VOO, so TECL leads on 1-year performance. Over the longest common window we track (14 years), TECL annualized +45.05% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, TECL or VOO?
TECL has been the more volatile fund at 60.1% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TECL and VOO?
TECL and VOO share 72 common holdings with a 37.8% weight overlap. Combined, they hold 511 unique securities.
Which pays a higher dividend, TECL or VOO?
TECL yields 3.62% while VOO yields 1.09%, so TECL currently pays the higher dividend yield.
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