TECS vs VOO

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricTECSVOOWinner
Expense Ratio1.01%0.03%
AUM$77M$979.0B
Dividend Yield89.69%1.09%
Holdings12509
YTD Return-64.48%+13.80%
1Y Return-73.89%+23.71%
3Y Return (annualized)-64.18%+21.50%
5Y Return (annualized)-56.54%+13.44%
Volatility (annualized)51.9%14.1%
Max Drawdown-100.0%-34.3%
Fund FamilyDirexion Shares ETF TrustVanguard (US)
CategoryAlternativeEquity
InceptionDec 17, 2008Sep 7, 2010

TECS vs VOO Performance

Direxion Daily Technology Bear 3X ETF (TECS) 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 TECS returned -73.89% while VOO returned +23.71%. Year to date, TECS is down 64.48% versus a gain of 13.80% for VOO.

Over three years, TECS compounded at -64.18% per year against +21.50% for VOO; over five years the annualized figures are -56.54% and +13.44% respectively. Across the full 16-year window we track, VOO has the edge at +13.58% annualized vs -57.94%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TECS has been the more volatile fund, with annualized monthly volatility of 51.9% 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 -100.0% for TECS 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 -0.82. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

TECS charges 1.01% per year while VOO charges 0.03%. On a $10,000 position that is $101 vs $3 annually, a gap of $98 per year that compounds over a long holding period. On income, TECS currently yields 89.69% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

TECS and VOO share 0 holdings out of 509 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, TECS or VOO?

TECS has an expense ratio of 1.01% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $98 per year of difference.

Which performed better, TECS or VOO?

Over the past year TECS returned -73.89% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), TECS annualized -57.94% vs +13.58% for VOO. Past performance does not guarantee future results.

Which is riskier, TECS or VOO?

TECS has been the more volatile fund at 51.9% annualized versus 14.1% for VOO. Worst drawdown: TECS -100.0% vs VOO -34.3%.

Should I hold both TECS and VOO?

TECS and VOO have a monthly-return correlation of -0.82, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TECS and VOO?

TECS and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 509 unique securities.

Which pays a higher dividend, TECS or VOO?

TECS yields 89.69% while VOO yields 1.09%, so TECS currently pays the higher dividend yield.

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