TECL
Price
$239.63
Change
+$24.14 (+11.20%)
Updated
Jun 15, 04:59 PM (EDT)
Net Assets
6.32B
Intraday BUY SELL Signals
TQQQ
Price
$84.70
Change
+$7.18 (+9.26%)
Updated
Jun 15, 04:59 PM (EDT)
Net Assets
36.7B
Intraday BUY SELL Signals
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TECL vs TQQQ

Header iconTECL vs TQQQ Comparison
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Which ETF would AI Choose? Direxion Daily Technology Bull 3X Shares (TECL) vs. ProShares UltraPro QQQ (TQQQ)

Key Takeaways

  • Both TECL and TQQQ are 3x daily leveraged exchange-traded funds (ETFs) that seek amplified returns through derivatives such as swaps and futures, with daily resets that introduce significant compounding and volatility risks over longer periods.
  • TECL provides targeted 3x exposure exclusively to the Technology Select Sector Index, resulting in a narrower, more concentrated technology-sector focus compared to TQQQ's broader Nasdaq-100 Index tracking.
  • TQQQ holds a slight cost advantage with a net expense ratio of 0.82% versus TECL's 0.87%, while offering marginally greater diversification across approximately 100 non-financial Nasdaq-listed companies.
  • Both ETFs exhibit high concentration in mega-cap technology names such as NVIDIA, Microsoft, and Apple, though TECL maintains a pure-play technology allocation without the consumer discretionary, communication services, or other sectors present in the Nasdaq-100.
  • Structural similarities in leverage methodology and rebalancing make relative performance highly sensitive to the underlying indices' sector weighting and momentum, with TQQQ benefiting from broader index participation during mixed market environments.
  • These products suit short-term tactical positioning rather than long-term buy-and-hold strategies due to the effects of daily leverage reset and potential decay in sideways or volatile markets.

Introduction

Direxion Daily Technology Bull 3X Shares (TECL) and ProShares UltraPro QQQ (TQQQ) represent two prominent leveraged exchange-traded funds (ETFs) that appeal to investors seeking amplified daily exposure to technology-driven growth. While they do not compete directly as identical products, they offer alternative leveraged strategies targeting overlapping investor objectives of magnified returns from large-cap U.S. technology equities. Their comparison is particularly relevant in the current market environment characterized by ongoing artificial intelligence adoption, semiconductor demand, and sector rotation dynamics within growth equities.

Direxion Daily Technology Bull 3X Shares (TECL) Overview

Direxion Daily Technology Bull 3X Shares (TECL) is a leveraged ETF that seeks daily investment results, before fees and expenses, of 300% of the daily performance of the Technology Select Sector Index. The fund employs financial instruments including swap agreements and securities to achieve its objective and holds approximately 70 to 94 positions, with heavy weighting toward semiconductors and software. Top holdings typically include NVIDIA, Apple, Microsoft, Broadcom, and Advanced Micro Devices. Sector allocation is concentrated entirely within technology, featuring significant exposure to semiconductors (around 40%) and software (around 25%). The net expense ratio stands at 0.87%. As a passive, daily-reset leveraged product, it rebalances daily and is designed for short-term use rather than extended holding periods.

ProShares UltraPro QQQ (TQQQ) Overview

ProShares UltraPro QQQ (TQQQ) is a leveraged ETF that seeks daily investment results, before fees and expenses, of 300% of the daily performance of the Nasdaq-100 Index. The fund utilizes derivatives such as swaps and futures contracts to deliver its target exposure and typically maintains around 100 to 114 holdings. Prominent positions include NVIDIA, Microsoft, Apple, Amazon, and Broadcom. The Nasdaq-100 provides broader diversification than a pure technology index, incorporating consumer discretionary, communication services, and healthcare alongside dominant technology weighting. The net expense ratio is 0.82%. Like its counterpart, it is a passive, daily-reset leveraged vehicle suited for tactical applications.

Industry and Thematic Backdrop

Both ETFs operate within the technology and growth equity landscape, influenced by artificial intelligence infrastructure spending, semiconductor supply chains, and corporate capital expenditure cycles. Macroeconomic factors including interest rate expectations, inflation trends, and regulatory scrutiny on large technology platforms continue to shape sector performance. Capital flows into technology have remained robust amid earnings strength from key constituents, though risks such as valuation compression, geopolitical tensions affecting supply chains, and potential shifts in monetary policy introduce volatility. The environment favors momentum-driven sectors but underscores the importance of monitoring earnings cycles and broader economic indicators.

Performance and Positioning Comparison

In recent market cycles, both funds have delivered amplified returns aligned with underlying index movements, with TQQQ benefiting from the Nasdaq-100's inclusion of high-performing non-technology names during periods of sector rotation. TECL has shown sharper sensitivity to pure technology momentum due to its concentrated exposure. Volatility differences arise from index construction, with TECL generally exhibiting higher beta to semiconductor and software trends. Relative positioning favors TQQQ for investors seeking slightly broader participation, while TECL appeals to those targeting precise technology-sector leverage. Both have experienced significant drawdowns during market corrections, highlighting the compounding effects of daily resets.

AI Screener

Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Explore the AI Screener to enhance your research process.

Tickeron AI Verdict

Based on structural factors including marginally lower expense ratio, broader index diversification, and comparable leverage mechanics, Tickeron’s AI would currently assign a probabilistic edge to ProShares UltraPro QQQ (TQQQ) for investors seeking leveraged growth exposure. The Nasdaq-100's inclusion of additional high-momentum sectors provides a modest cushion relative to the more concentrated technology focus of Direxion Daily Technology Bull 3X Shares (TECL), though both remain high-risk instruments best suited for experienced users monitoring short-term trends.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations

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TECL vs. TQQQ commentary
Jun 16, 2026

To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is TECL is a Hold and TQQQ is a StrongBuy.

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SUMMARIES
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FUNDAMENTALS
Fundamentals
TQQQ has more net assets: 36.7B vs. TECL (6.32B). TECL has a higher annual dividend yield than TQQQ: TECL (83.603) vs TQQQ (47.283). TECL was incepted earlier than TQQQ: TECL (18 years) vs TQQQ (16 years). TQQQ (0.82) has a lower expense ratio than TECL (0.87). TECL has a higher turnover TQQQ (25.00) vs TQQQ (25.00).
TECLTQQQTECL / TQQQ
Gain YTD83.60347.283177%
Net Assets6.32B36.7B17%
Total Expense Ratio0.870.82106%
Turnover94.0025.00376%
Yield3.400.37912%
Fund Existence18 years16 years-
TECHNICAL ANALYSIS
Technical Analysis
TECLTQQQ
RSI
ODDS (%)
Bearish Trend 4 days ago
90%
Bearish Trend 4 days ago
90%
Stochastic
ODDS (%)
Bullish Trend 4 days ago
90%
Bullish Trend 4 days ago
90%
Momentum
ODDS (%)
Bearish Trend 4 days ago
89%
Bearish Trend 4 days ago
87%
MACD
ODDS (%)
Bearish Trend 4 days ago
90%
Bearish Trend 4 days ago
88%
TrendWeek
ODDS (%)
Bullish Trend 4 days ago
90%
Bullish Trend 4 days ago
90%
TrendMonth
ODDS (%)
Bullish Trend 4 days ago
90%
Bullish Trend 4 days ago
90%
Advances
ODDS (%)
Bullish Trend 4 days ago
90%
Bullish Trend 4 days ago
90%
Declines
ODDS (%)
Bearish Trend 6 days ago
89%
Bearish Trend 6 days ago
87%
BollingerBands
ODDS (%)
Bearish Trend 4 days ago
89%
Bearish Trend 4 days ago
90%
Aroon
ODDS (%)
Bullish Trend 4 days ago
90%
Bullish Trend 4 days ago
90%
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TECL
Daily Signal:
Gain/Loss:
TQQQ
Daily Signal:
Gain/Loss:
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TECL and

Correlation & Price change

A.I.dvisor indicates that over the last year, TECL has been closely correlated with NVDA. These tickers have moved in lockstep 73% of the time. This A.I.-generated data suggests there is a high statistical probability that if TECL jumps, then NVDA could also see price increases.

1D
1W
1M
1Q
6M
1Y
5Y
Ticker /
NAME
Correlation
To TECL
1D Price
Change %
TECL100%
+2.54%
NVDA - TECL
73%
Closely correlated
+0.16%
LRCX - TECL
72%
Closely correlated
+1.18%
AMAT - TECL
68%
Closely correlated
+2.64%
MU - TECL
68%
Closely correlated
-1.43%
AVGO - TECL
68%
Closely correlated
-0.91%
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