In the fast-paced realm of technology investments, two exchange-traded funds (ETFs) stand out as giants, each offering investors exposure to the lucrative world of tech stocks. TECL and TQQQ have garnered significant attention and debate among investors seeking to capitalize on the dynamic nature of the tech sector. As both ETFs vie for dominance, it's crucial for investors to understand their differences, strengths, and potential risks. Join us as we delve into the showdown between TECL and TQQQ, exploring what sets them apart and which one might be the better fit for your investment strategy.

Performance:
Based on the provided data, here's an analysis of the performance summary for Direxion Daily Technology Bull 3X ETF and ProShares UltraPro QQQ:

Initial and Final Balance: Both ETFs started with an initial balance of $10,000. Over time, the final balance for ProShares UltraPro QQQ was slightly higher at $803,903 compared to $733,332 for Direxion Daily Technology Bull 3X ETF.
Compound Annual Growth Rate (CAGR): ProShares UltraPro QQQ exhibited a slightly higher CAGR of 39.54% compared to 38.57% for Direxion Daily Technology Bull 3X ETF. This suggests that ProShares UltraPro QQQ had slightly better annual growth over the period analyzed.
Standard Deviation (Stdev): ProShares UltraPro QQQ had a lower standard deviation of 53.92% compared to 55.29% for Direxion Daily Technology Bull 3X ETF. A lower standard deviation indicates less volatility in returns.
Yearly Performance: Both ETFs experienced significant fluctuations in performance, with the best and worst years showing substantial gains and losses. However, ProShares UltraPro QQQ demonstrated a slightly better performance in terms of minimizing losses during the worst year.
Max. Drawdown: Direxion Daily Technology Bull 3X ETF experienced a maximum drawdown of -74.32%, while ProShares UltraPro QQQ had a slightly higher drawdown of -79.08%. A lower drawdown indicates a lesser decline in portfolio value during market downturns.
Risk-Adjusted Ratios:Sharpe Ratio: ProShares UltraPro QQQ had a slightly higher Sharpe ratio of 0.88 compared to 0.86 for Direxion Daily Technology Bull 3X ETF. The Sharpe ratio measures the risk-adjusted return of an investment.Sortino Ratio: Similarly, ProShares UltraPro QQQ had a higher Sortino ratio of 1.48 compared to 1.44 for Direxion Daily Technology Bull 3X ETF. The Sortino ratio also measures risk-adjusted returns but focuses on downside risk only.
Market Correlation: Both ETFs showed a high correlation with the market, with values of 0.89 for Direxion Daily Technology Bull 3X ETF and 0.91 for ProShares UltraPro QQQ. This indicates that they closely track the performance of the market.
Overall, while both ETFs have demonstrated strong growth potential, ProShares UltraPro QQQ appears to have slightly outperformed Direxion Daily Technology Bull 3X ETF in terms of CAGR, volatility, and risk-adjusted returns. However, investors should consider their risk tolerance and investment objectives before making a decision.


Drawdowns


Jan 2022 - Sep 2022: This drawdown lasted for 9 months, reaching a peak loss of -75.09%.
Feb 2020 - Mar 2020: Lasting for 2 months, this drawdown hit a maximum loss of -56.62%, with recovery taking 4 months.
Sep 2018 - Dec 2018: Spanning 4 months, this drawdown reached a peak loss of -49.67%, followed by a recovery period of 7 months.

Expense ratio:

TQQQ expense ratio: .88%
TECL expense ratio: .92%
Dividend yield

TQQQ dividend yield 1.14%
TECL dividend yield 0.28%
Dollar-cost averaging surprise:
Based on the provided data, here's an analysis of the performance summary for Portfolio 1 and Direxion Daily Technology Bull 3X ETF:

Initial and Final Balance: Portfolio 1 started with an initial balance of $10,000 and grew to a final balance of $8,593,985. On the other hand, Direxion Daily Technology Bull 3X ETF started with the same initial balance but ended with a higher final balance of $10,242,417. This indicates that both investments experienced significant growth over the analyzed period.
Compound Annual Growth Rate (CAGR): Portfolio 1 achieved a CAGR of 67.05%, while Direxion Daily Technology Bull 3X ETF achieved a slightly lower CAGR of 69.29%. This suggests that both investments yielded impressive annual growth rates.
Time-Weighted Rate of Return (TWRR) and Money-Weighted Rate of Return (MWRR): Portfolio 1 achieved TWRR and MWRR of 39.54% and 39.96%, respectively, while Direxion Daily Technology Bull 3X ETF achieved TWRR and MWRR of 38.57% and 42.31%, respectively. These rates indicate the average performance of the investments over the analyzed period.
Standard Deviation (Stdev): Portfolio 1 had a slightly lower standard deviation of 53.92% compared to 55.29% for Direxion Daily Technology Bull Direxion Daily Technology Bull 3X ETF had a slightly higher drawdown during the worst year (-75.09%) compared to Portfolio 1 (-79.08%).

This is not financial advice

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