TECL: DIREXION DAILY TECHNOLOGY BULL 3X SHARES
Share-split context: A forward split was recorded on Mar 2, 2021 with coefficient 10. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.
ETF Education Report: DIREXION Daily Technology Bull 3X Shares (TECL)
What this ETF is trying to do
TECL is an ETF that focuses on the technology sector. It is a "leveraged" ETF, which means it is designed to amplify the movements of its target index. This specific fund aims to provide three times the daily performance of its underlying technology benchmark.
What the numbers show
The data shows significant growth in share prices over different time periods. Because this ETF has a history of forward splits, the performance numbers provided are "split-adjusted." This means the returns account for times when one old share became multiple new shares.
Here is how the price return (the change in the share price itself) looks:
• Year-to-Date (YTD) Price Return: Approximately 114.89%
• One-Year Price Return: Approximately 95.70%
• Three-Year Price Return: Approximately 444.70%
It is important to look at the total return, which includes both price changes and distributions. The total returns are even higher:
• YTD Total Return: Approximately 115.52%
• One-Year Total Return: Approximately 108.33%
• Three-Year Total Return: Approximately 485.29%
Income and distribution explanation
This ETF provides cash distributions to investors. The distribution yield is approximately 3.39%. This number describes the cash paid out relative to the current share price of $252.47. These payments usually happen quarterly, and there were 4 payments in the last 12 months. While distributions provide cash income, they are separate from the total return of the investment.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's underlying assets). Some investors worry that high distributions might cause the fund's value to shrink over time. However, for TECL, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Top Holdings
The following are the top holdings in the portfolio (note that this list is partial):
• IXT SWAP ASSET LEG: 78.77%
• DREYFUS TRSRY SECURITIES CASH MGMT: 5.32%
• NVIDIA CORP: 3.41%
• APPLE INC: 3.00%
• JP MORGAN 100 US TRSY CAPITAL 3163: 2.79%
• MICROSOFT CORP: 2.35%
• DREYFUS GOVT CASH MAN INS: 2.29%
• ADVANCED MICRO DEVICES INC: 1.11%
• GOLDMAN FINL SQ TRSRY INST 506: 1.08%
• BROADCOM INC: 1.03%
Pros
• The ETF has shown very high price returns and total returns over the last one to three years.
• The erosion-risk measurement is considered "good."
Cons
• This is a leveraged ETF, which means it can experience much larger price swings than standard funds.
• Because it is leveraged, the performance can change rapidly.
Beginner takeaway
TECL is a high-growth, leveraged technology ETF. While it has shown very large returns recently, leveraged funds are different from traditional investments because they aim to multiply daily movements. Always remember that a high distribution yield is separate from the total return of your investment.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | IXT SWAP ASSET LEG | n/a | 78.77% |
| 2 | DREYFUS TRSRY SECURITIES CASH MGMT | n/a | 5.32% |
| 3 | NVIDIA CORP | NVDA | 3.41% |
| 4 | APPLE INC | AAPL | 3.00% |
| 5 | JP MORGAN 100 US TRSY CAPITAL 3163 | n/a | 2.79% |
| 6 | MICROSOFT CORP | MSFT | 2.35% |
| 7 | DREYFUS GOVT CASH MAN INS | n/a | 2.29% |
| 8 | ADVANCED MICRO DEVICES INC | AMD | 1.11% |
| 9 | GOLDMAN FINL SQ TRSRY INST 506 | n/a | 1.08% |
| 10 | BROADCOM INC | AVGO | 1.03% |