TECL vs VTI
Direxion Daily Technology Bull 3X ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. TECL delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | TECL | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.87% | 0.03% | |
| AUM | $5.0B | $663.5B | |
| Dividend Yield | 3.62% | 1.07% | |
| Holdings | 86 | 3,543 | |
| YTD Return | +73.79% | +13.87% | |
| 1Y Return | +109.15% | +23.31% | |
| 3Y Return (annualized) | +65.32% | +21.17% | |
| 5Y Return (annualized) | +29.20% | +12.23% | |
| Volatility (annualized) | 60.0% | 15.3% | |
| Max Drawdown | -78.0% | -56.6% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 17, 2008 | May 24, 2001 |
TECL vs VTI Performance
Direxion Daily Technology Bull 3X ETF (TECL) is a ETF from Direxion Shares ETF Trust and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year TECL returned +109.15% while VTI returned +23.31%. Year to date, TECL is up 73.79% versus a gain of 13.87% for VTI.
Over three years, TECL compounded at +65.32% per year against +21.17% for VTI; over five years the annualized figures are +29.20% and +12.23% respectively. Across the full 14-year window we track, TECL has the edge at +44.68% annualized vs +8.13%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TECL has been the more volatile fund, with annualized monthly volatility of 60.0% compared with 15.3% for VTI. 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 -56.6% for VTI. 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
TECL charges 0.87% per year while VTI 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 1.07% for VTI.
Holdings Overlap
TECL and VTI share 66 holdings out of 2795 unique holdings combined, representing a 32.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TECL or VTI?
TECL has an expense ratio of 0.87% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $84 per year of difference.
Which performed better, TECL or VTI?
Over the past year TECL returned +109.15% vs +23.31% for VTI, so TECL leads on 1-year performance. Over the longest common window we track (14 years), TECL annualized +44.68% vs +8.13% for VTI. Past performance does not guarantee future results.
Which is riskier, TECL or VTI?
TECL has been the more volatile fund at 60.0% annualized versus 15.3% for VTI. Worst drawdown: TECL -78.0% vs VTI -56.6%.
Should I hold both TECL and VTI?
TECL and VTI have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TECL and VTI?
TECL and VTI share 66 common holdings with a 32.7% weight overlap. Combined, they hold 2795 unique securities.
Which pays a higher dividend, TECL or VTI?
TECL yields 3.62% while VTI yields 1.07%, so TECL currently pays the higher dividend yield.
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