TECL Direxion Daily Technology Bull 3X Shares ETF - A Short Term Tactical Bet on Technology Sector
πππTech stocks in particular Big Tech have been a major winner this year. $Direxion Daily Technology Bull 3X Shares(TECL)$ is up a massive 167% year todate! TECL seeks daily investment results of 300% of the performance of the Technology Select Sector Index. It is investing in the Tech Sector on a turbo charger!
The Top 10 holdings include $Microsoft(MSFT)$
Broadcom, Adobe, Sales Force, Accenture, Cisco and $Advanced Micro Devices(AMD)$
The Top 10 holdings weightage is 70%. Total number of holdings is 65.
The expense ratio is 0.97%.
Distributions are paid yearly. The current distribution yield is 0.28%.
In contrast XLK ETF which is Technology Select Sector SPDR Fund is not a leveraged ETF. However XLK is up 48% year todate. Its Expense ratio is 0.10%. Distributions are paid quarterly. The current distribution yield is 0.76%. It goes ex dividend on December 18 2023. Total number of holdings is 67.
If you are an investor that prefers to buy and hold long term, then XLK ETF is a better option. It is certainly less volatile and great for the risk adverse investor.
However if you are an active trader, TECL ETF is a great option to capture the short term Bullish trend on the Tech Sector. TECL's aim is to magnify the short term daily returns with a 3x leverage. Leverage can exponentially increase your profits as well as your losses so it is important to exercise caution when trading TECL ETF. The larger the position, the larger your point value will be and therefore the greater the impact on your profit /loss.
However the maximum loss is capped by the amount you paid for the trade unlike options.
The choice is yours - TECL for magnified returns on daily trends OR XLK for slow and steady long term returns.
The Tech Sector is one of the Fastest Growing sectors in 2023 especially with the surge in AI. Both TECL and XLE are great tactical plays in this exciting sector going into 2024 and beyond.
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By my calculations, we need XLK to hit 209 for TECL to break above all time high. Possible good run to end of year so maybe 1st quarter 2024.
The correction seems to be over for now, momentum is back! The trend is confirmed by the markettaich indicator too. Time to get in!
This one seems good. Is TSLA included in it?
A good tech ETF!!