SOXL's 3x leverage and semiconductor sector focus create far higher risk and volatility than SSO's broad 2x S&P 500 exposure. SOXL offers a lower expense ratio, but it's suffered a much deeper 5-year max drawdown and lower risk-adjusted returns.
VettaFi's Head of Research Todd Rosenbluth discussed the Direxion Daily Semiconductor Bull 3X Shares (SOXL) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and strategy, visit the Leveraged & Inverse Content Hub.
On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research, Todd Rosenbluth, discussed the Direxion Daily Semiconductor Bull 3x Shares (SOXL) with Chuck Jaffe of Money Life. The pair discussed several topics related to the fund to give investors a deeper understanding of the ETF.
On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research, Todd Rosenbluth, discussed the Direxion Daily Semiconductor Bull 3x Shares (SOXL) with Chuck Jaffe of Money Life. The pair discussed several topics related to the fund to give investors a deeper understanding of the ETF.
SOXL's ultra-leveraged design hasn't delivered long-term outperformance despite semiconductor sector strength since 2020. Difficult to overcome compounding effects on large drawdowns make recovering losses in leveraged ETFs mathematically challenging. 3X leveraged ETFs like SOXL are typically poor choices for long-term wealth creation as a buy-and-hold idea.
tech sector's struggles early in 2025 are well-documented. But those doldrums rapidly gave way to bullish sentiment that's carried gauges such as the Nasdaq-100 (NDX) and the S&P Technology Select Sector indexes to or close to new highs.
I believe we're on the verge of a new AI-driven growth wave, with semiconductors set to benefit from surging demand across multiple AI phases. For risk-prone investors, SOXL—a 3X leveraged semiconductor ETF—offers a high-upside, short-term play on an imminent semiconductor bull run. Leveraged ETFs like SOXL are not suitable for long-term holding due to high volatility, expense ratios, and compounding risks during market corrections.
SOXL is a tactical, high-risk play on semiconductor momentum, not a core holding, but current sector flows and AI demand support a bullish setup. Options and gamma positioning cluster around $25, with buy signals stacking up, suggesting mechanical and sentiment-driven upside potential in the near term. A bull call spread targeting July expiry ($27/$32) offers a defined-risk way to capitalize on further upside, aligning with technical and options market dynamics.
On Wednesday, Direxion expanded its lineup of Leveraged & Inverse ETFs with the release of four new funds. Two of the new funds focus on the daily stock performance of Cisco (CSCO).
We have highlighted five ETFs that have seen higher average volumes over the past three months.
Leveraged ETFs surge this month with investors betting on amplified gains amid hopes of a rebound after tariff-driven sell-off.
Since Liberation Day, the market has made many moves in both directions. While many investors have focused on hedging volatility, a handful of investors have used this is as opportunity to take advantage of any directional movement — whether up or down — by using leveraged ETFs.