Average Daily Volume
1.96M
Fund Overview
The Direxion Daily Technology Bull 3X Shares (TECL) is a leveraged ETF designed to provide 3x the daily performance of the Technology Select Sector Index. This ETF is intended for short-term trading and is not suitable for long-term investors due to the effects of compounding and volatility decay. The Technology Select Sector Index includes companies from the technology sector, such as software, hardware, and semiconductor firms, that are part of the S&P 500. TECL uses financial derivatives and debt to amplify returns, making it a high-risk, high-reward instrument for traders seeking leveraged exposure to the tech sector.
- Asset Class
-
Equity
- Industry
-
Broad Technology
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- N/A
- Currency Hedged
-
No
- Portfolio Turnover
-
134 %
- Dividend Date
-
Why Invest in the TECL ETF?
Potential Benefits
- Offers 3x leveraged daily exposure to the technology sector, amplifying gains in bullish market conditions.
- Provides a cost-effective way to gain leveraged exposure without using margin or options.
- Liquidity is generally high, allowing for easy entry and exit.
- Diversified exposure to major tech companies within the S&P 500.
- Useful for short-term tactical trades in response to tech sector momentum.
Potential Risks
- High volatility and compounding risk make it unsuitable for long-term holding.
- Performance can deviate significantly from 3x the index over extended periods due to daily resets.
- Sensitive to market downturns, with amplified losses in bearish conditions.
- Higher expense ratio compared to non-leveraged tech ETFs.
- Derivatives and leverage introduce counterparty and liquidity risks.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
-1.8%
|
-12.6%
|
-14.1%
|
+69.0%
|
+67.8%
|
-5.9%
|
-24.8%
|
+17.2%
|
+1.9%
|
-
|
-
|
-
|
| 2025 |
-5.0%
|
-8.9%
|
-25.0%
|
-5.8%
|
+29.9%
|
+30.8%
|
+10.1%
|
-1.8%
|
+22.8%
|
+18.7%
|
-15.9%
|
+0.5%
|
| 2024 |
+6.1%
|
+12.9%
|
+0.5%
|
-18.2%
|
+20.5%
|
+23.3%
|
-12.8%
|
-1.9%
|
+5.1%
|
-6.6%
|
+14.3%
|
-3.2%
|
| 2023 |
+27.7%
|
-0.9%
|
+33.2%
|
-1.9%
|
+26.4%
|
+17.2%
|
+6.4%
|
-6.8%
|
-19.5%
|
-1.7%
|
+41.2%
|
+11.6%
|
| 2022 |
-20.8%
|
-16.1%
|
+7.2%
|
-31.8%
|
-6.6%
|
-28.3%
|
+42.9%
|
-19.4%
|
-33.6%
|
+19.7%
|
+14.4%
|
-24.7%
|
| 2021 |
-3.9%
|
+3.0%
|
+2.7%
|
+15.6%
|
-4.1%
|
+21.5%
|
+11.4%
|
+10.5%
|
-17.3%
|
+25.5%
|
+12.9%
|
+7.9%
|
| 2020 |
+11.0%
|
-22.7%
|
-43.9%
|
+38.4%
|
+21.0%
|
+19.6%
|
+16.3%
|
+38.4%
|
-18.4%
|
-16.1%
|
+36.1%
|
+17.0%
|
| 2019 |
+18.7%
|
+21.4%
|
+13.5%
|
+19.6%
|
-25.2%
|
+27.9%
|
+9.3%
|
-7.3%
|
+3.8%
|
+10.6%
|
+16.1%
|
+12.9%
|
| 2018 |
+22.0%
|
-4.1%
|
-12.8%
|
-1.4%
|
+20.6%
|
-1.8%
|
+5.5%
|
+20.1%
|
-1.0%
|
-25.1%
|
-8.3%
|
-26.0%
|
| 2017 |
+10.9%
|
+14.0%
|
+6.1%
|
+5.7%
|
+11.6%
|
-8.9%
|
+13.5%
|
+7.8%
|
+1.9%
|
+20.3%
|
+3.3%
|
+0.9%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
MSFT
|
MICROSOFT CORP |
10.6 % |
|
AAPL
|
APPLE INC |
10.4 % |
|
NVDA
|
NVIDIA CORP |
9.5 % |
|
AVGO
|
BROADCOM INC |
3.2 % |
|
CRM
|
SALESFORCE INC |
2.4 % |
|
CSCO
|
CISCO SYSTEMS INC |
2.2 % |
|
IBM
|
INTERNATIONAL BUSINESS MACHINES CORP |
2.1 % |
|
ORCL
|
ORACLE CORP |
2.1 % |
|
ACN
|
ACCENTURE PLC CLASS A |
1.8 % |
|
PLTR
|
n/a |
1.7 % |
Top 10 holdings shown, out of 70 total holdings.
Related ETFs: TECL vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
TECL seeks to deliver 3x the daily performance of the Technology Select Sector Index, which includes technology companies from the S&P 500. The fund uses swaps, futures, and other derivatives to achieve its leveraged exposure. It is rebalanced daily to maintain the target leverage ratio, which means performance can differ significantly from 3x the index return over longer periods due to compounding effects. The fund primarily holds financial instruments rather than direct equity positions.
Frequently Asked Questions
Is TECL suitable for long-term investing?
No, TECL is designed for short-term trading due to the effects of daily leverage resetting, which can lead to significant performance deviations over time.
What index does TECL track?
TECL seeks to provide 3x the daily performance of the Technology Select Sector Index, which includes tech companies within the S&P 500.
How does TECL achieve its leverage?
TECL uses financial derivatives such as swaps and futures to amplify returns, rather than holding physical stocks directly.
What are the main risks of TECL?
Key risks include volatility decay, amplified losses in downturns, and the potential for significant tracking error over longer holding periods.
Industry Overview
The technology sector is a dynamic and rapidly evolving segment of the economy, driven by innovation, digital transformation, and global demand for tech products and services. TECL provides leveraged exposure to this sector, which includes industry leaders in software, hardware, semiconductors, and IT services. Investing in leveraged tech ETFs like TECL can be appealing during periods of strong sector performance but requires careful risk management due to amplified volatility.
Alternative Comparison
Compared to non-leveraged tech ETFs like XLK or VGT, TECL offers amplified returns but comes with higher risk and costs. Unlike SOXL, which focuses on semiconductors, TECL provides broader tech sector exposure. TECL's use of daily resets differentiates it from buy-and-hold tech ETFs, making it more suitable for short-term traders than long-term investors.
Issuer Overview
Direxion is a well-known issuer of leveraged and inverse ETFs, specializing in products designed for short-term trading. The firm offers a range of ETFs that provide magnified exposure to various sectors, industries, and market indices. Direxion's leveraged ETFs, including TECL, are popular among active traders seeking to capitalize on short-term market movements.
Conclusion
TECL is a specialized tool for traders seeking leveraged exposure to the technology sector. While it can deliver significant gains in bullish conditions, its risks—including volatility decay and amplified losses—make it inappropriate for most long-term investors. Careful consideration of market timing and risk tolerance is essential before investing.
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