ETF Comparison

TECL vs TQQQ: Which Is the Better Pick in 2026?

A head-to-head comparison of Direxion Daily Technology Bull 3X Shares and ProShares UltraPro QQQ covering yield, cost, risk, and income potential.

Data updated July 4, 2026

Direxion

ETFs125

Total AUM$78.4B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Direxion is known for creating leveraged and inverse ETFs that amplify or reverse the daily movements of underlying indices and sectors. The firm's 22-fund lineup focuses primarily on leveraged long and short strategies across technology, financials, commodities, and broad market segments, with popular tickers including SOXL (3x leveraged semiconductors), SPXL (3x leveraged S&P 500), and TMF (3x leveraged long-term Treasuries). These funds are designed for tactical, short-term trading rather than buy-and-hold investing, making Direxion a niche player catering to experienced investors seeking amplified market exposure or hedging strategies.

See our curated list of related YouTube videos on TECL.

See all Direxion ETFs

ProShares

ETFs165

Total AUM$123B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

ProShares is known for offering leveraged and inverse ETFs that provide amplified exposure to market movements, along with thematic and income-focused strategies. Their fund lineup spans digital assets (including Bitcoin and Ethereum exposure through BITO and EETH), dividend strategies like the Dividend Aristocrats fund (NOBL), covered call income strategies, and leveraged/inverse products that track major indices with 2x or 3x daily multipliers (such as SSO and TQQQ for tech-heavy portfolios). With 23 ETFs across specialized families including leveraged products, money market funds, and sector-specific offerings, ProShares serves investors seeking both traditional income and alternative exposure strategies.

See our curated list of related YouTube videos on TQQQ.

See all ProShares ETFs

Side-by-side snapshot

	TECL	TQQQ
Full name	Direxion Daily Technology Bull 3X Shares	ProShares UltraPro QQQ
Issuer	Direxion	ProShares
Last Close	$195.27 as of July 4, 2026	$73.35 as of July 4, 2026
Distribution yield	0.43%	0.93%
Distribution Safety Score	85	80
Expense ratio	0.94%	0.88%
AUM	$6.32B	$34.0B
Distribution frequency	Quarterly	Quarterly
Underlying index	Technology Select Sector Index	Nasdaq-100 Index
Objective	Seeks daily investment results of 300% of the performance of the Technology Select Sector Index.	Seek daily investment results, before fees, that correspond to three times the daily performance of the Nasdaq-100 Index.
Asset class	Equity	Equity
Inception date	12/17/2008	02/09/2010
Beta	4.75	3.91
Last dividend	$0.2090	$0.1712
Ex-dividend date	06/23/2026	06/24/2026

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

TECL has outpaced TQQQ over the trailing twelve months, posting a 127.91% total return against 82.11%. The lead holds up over 10 years too: TECL has compounded at 50.20% a year, against 43.80% for TQQQ. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since Feb 2010	Volatility	Sharpe	Sortino	Max drawdown
TECL	65.43%	127.91%	57.58%	30.53%	50.20%	41.30%	72.7%	0.57	0.77	-66.6%
TQQQ	40.35%	82.11%	54.27%	20.16%	43.80%	43.12%	59.9%	0.65	0.90	-58.0%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Feb 2010” measures every fund from February 11, 2010 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

TECL (Direxion Daily Technology Bull 3X Shares) and TQQQ (ProShares UltraPro QQQ) are both quarterly-pay dividend ETFs, but they take different approaches.

TQQQ offers the higher yield at 0.93% vs 0.43% for TECL. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

TQQQ is cheaper with an expense ratio of 0.88% compared to 0.94%.

They track different benchmarks: TECL is linked to Technology Select Sector Index while TQQQ tracks Nasdaq-100 Index, which means their performance drivers differ.

TQQQ is the larger fund by assets ($34.0B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, TECL would generate roughly $3.58/month, while TQQQ would produce $7.75/month, at current distribution rates. Both pay quarterly distributions.

TECL yield0.43%

TQQQ yield0.93%

Monthly diff on $10K$4.17

Cost & efficiency

Over 10 years on $10,000, TECL would cost approximately $940 in fees vs $880 for TQQQ (simplified, not compounded). The $60.00 difference may be offset by yield or performance.

TECL ER0.94%

TQQQ ER0.88%

Strategy & risk

TECL tracks Technology Select Sector Index with a leverage approach, while TQQQ tracks Nasdaq-100 Index with a leverage approach. Beta is 4.75 for TECL and 3.91 for TQQQ, indicating TQQQ is less volatile relative to the market.

TECL beta4.75

TQQQ beta3.91

Fund details

TECL is managed by Direxion (launched 12/17/2008) with $6.32B in assets. TQQQ is managed by ProShares (launched 02/09/2010) with $34.0B in assets.

TECL AUM$6.32B

TQQQ AUM$34.0B

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Frequently asked questions

Is TECL or TQQQ better for dividend income?

It depends on your goals. TQQQ currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between TECL and TQQQ?

TECL (Direxion Daily Technology Bull 3X Shares) tracks Technology Select Sector Index with a leverage approach, while TQQQ (ProShares UltraPro QQQ) tracks Nasdaq-100 Index with a leverage approach. They are issued by Direxion and ProShares respectively.

Can I hold both TECL and TQQQ?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, TECL or TQQQ?

TECL has an expense ratio of 0.94% while TQQQ charges 0.88%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in TECL vs TQQQ generate?

At current rates, $10,000 in TECL would generate roughly $3.58 per month ($43.00 annually). The same in TQQQ would produce about $7.75 per month ($93.00 annually).

Which has performed better historically, TECL or TQQQ?

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TECL vs TQQQ — at a glance

Generated June 2026 from current fund data.

Overview

TECL and TQQQ are both 3x leveraged daily-reset equity ETFs that amplify the returns of their respective underlying indices. TECL tracks the Technology Select Sector Index—the tech component of the S&P 500—while TQQQ targets the Nasdaq-100, a broader large-cap tech-heavy benchmark that includes non-tech mega-cap growth names. The key distinction: TECL concentrates on the S&P 500's technology sector alone, while TQQQ captures 100 of the largest non-financial stocks across all sectors, with significant overlap in mega-cap names but exposure to healthcare, consumer, and communications holdings that TECL excludes.

How they differ

Both funds use 3x leverage and reset daily, but they track different baskets. TECL's underlying is narrower—just the S&P 500 Technology Select Sector—while TQQQ's Nasdaq-100 includes healthcare, consumer discretionary, and communication services alongside technology. TQQQ is substantially larger, with $34.0B in AUM versus TECL's $6.32B, which typically means tighter bid-ask spreads and lower trading friction. The yield structures are similar (TECL at 0.40%, TQQQ at 0.91%), but TQQQ has a lower expense ratio at 0.88% compared to TECL's 0.94%. TQQQ's beta of 3.91 reflects its slightly lower realized leverage than TECL's 4.75, partly a function of daily rebalancing mechanics and differing index compositions.

Who each is best for

TECL: Fits investors with high risk tolerance seeking concentrated exposure to the S&P 500 technology sector who want the amplified daily price movements of a 3x leveraged vehicle and are comfortable with daily rebalancing drag over long holding periods.

TQQQ: Designed for risk-tolerant investors who want broad large-cap growth and tech exposure (including non-tech mega-caps like Apple, Microsoft, and Amazon) with 3x daily leverage and can tolerate the compounding effects of daily reset mechanics on multi-day holding periods.

Key risks to know

Daily rebalancing decay: Both funds reset their leverage daily, which creates "volatility drag"—the compounded difference between daily triple performance and multi-day holding returns. In sideways or choppy markets, this gap widens, eroding NAV over time.

Leverage amplification during downturns: A 10% drop in the underlying index translates to roughly a 30% loss in the fund (before rebalancing), then a sharper loss the next day if selling continues. TECL's narrower technology-only exposure magnifies sector rotation risk.

Single-sector concentration (TECL): TECL's exclusive focus on S&P 500 technology isolates investors from valuation diversification. A sector drawdown affects TECL far more severely than TQQQ, which spreads exposure across healthcare and consumer names.

Unsuitable for buy-and-hold: Both are designed for tactical, short-term trades (days to weeks), not long-term retirement portfolios. Holding beyond 3–6 months typically results in underperformance versus a simple 3x leveraged position in the unleveraged index due to daily reset slippage.

Correlation decay with longer holding periods: TQQQ's larger AUM and more liquid underlying may experience slightly lower slippage than TECL, but neither escapes the mathematical cost of daily rebalancing in volatile environments.

Bottom line

TECL concentrates on technology alone with higher beta (4.75), while TQQQ broadens to 100 large-caps with lower drag and bigger asset base—making TQQQ more liquid but TECL more suitable for investors convinced of a technology outrun. Both are short-term tactical tools, not long-term holdings. Past performance doesn't predict future results, and daily rebalancing mechanics make these vehicles suitable only for investors comfortable with potential NAV erosion over months or years.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.