It’s not surprising to see a high level of interest in the tech sector. Whether its the promise of cloud computing (NYSEARCA: SKYY), clean energy transportation (NYSEARCA: LIT), or improved cyber-security (NYSEARCA: HACK), technology always leads other sectors with arguably more innovation per square foot compared to everything else. But it’s also leading in terms of market performance and that’s why we’ve talked a lot about the technology sector at ETFguide Premium along with our weekly podcast.

Although the Direxion Daily Technology Bull 3x Shares ETF (NYSEARCA: TECL) and the Technology Select Sector SPDR ETF (NYSEARCA: XLK) both target the same sector (technology), the approach of each fund is radically different.

TECL uses triple daily leverage to tech stocks. That means if the tech sector is +1% on any given trading day, TECL should be up +3% or close to it. The opposite is true too. If the tech sector falls by -1%, TECL will fall three times more because it’s chief goal is to magnify performance returns.

Even without the leverage that TECL uses, the tech sector is extremely volatile and subject to wild swings. However, these potential shortcomings have been conquered by very strong market performance not just in 2018, but over the past several years.

While the broader U.S. stock market via the Schwab Total U.S. Stock Market ETF (NYSEARCA: SCHB) has climbed around +43% during the past three-years, TECL has soared almost +324%. Meanwhile, the Technology Select Sector SPDR ETF (NYSEARCA: XLK) – which offers un-leveraged exposure to S&P 500 technology stocks – has jumped an impressive +81% during that same time-frame.

Which ETF is better – TECL or XLK? The answer is that it depends on how you’ll be using the fund.

For example, if you want a short-term to intermediate-term trade that aims for big short-term gains in a sector packed with bullish momentum, then TECL is an ideal choice. It’s always best to use leverage in a sharply trending market that’s moving in the exact same direction that you’re trading in.