TECS vs VOO
Direxion Daily Technology Bear 3X ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | TECS | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.01% | 0.03% | |
| AUM | $66M | $997.4B | |
| Dividend Yield | 7.32% | 1.08% | |
| Holdings | 12 | 509 | |
| YTD Return | -63.49% | +13.25% | |
| 1Y Return | -72.26% | +19.96% | |
| 3Y Return (annualized) | -63.15% | +21.27% | |
| 5Y Return (annualized) | -55.32% | +12.81% | |
| Volatility (annualized) | 51.9% | 14.1% | |
| Max Drawdown | -100.0% | -34.3% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 17, 2008 | Sep 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 -72.26% while VOO returned +19.96%. Year to date, TECS is down 63.49% versus a gain of 13.25% for VOO.
Over three years, TECS compounded at -63.15% per year against +21.27% for VOO; over five years the annualized figures are -55.32% and +12.81% respectively. Across the full 16-year window we track, VOO has the edge at +13.49% annualized vs -57.76%. 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 7.32% against 1.08% for VOO.
Holdings Overlap
TECS and VOO share 0 holdings out of 508 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 -72.26% vs +19.96% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), TECS annualized -57.76% vs +13.49% 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 508 unique securities.
Which pays a higher dividend, TECS or VOO?
TECS yields 7.32% while VOO yields 1.08%, so TECS currently pays the higher dividend yield.
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