SOXL has delivered a much higher one-year return than SPXL, but with far greater volatility and a deeper historical drawdown. Both funds charge similar expense ratios, but SPXL offers a higher dividend yield.
SOXL's three-times leverage and semiconductor focus make it far riskier than SSO while also driving much larger recent gains and deeper losses SOXL trades with higher volatility and a much larger drawdown, but offers greater liquidity and assets under management SSO tracks the broader S&P 500 with more sector diversification and a higher dividend yield than SOXL
SOXL, the Direxion Daily Semiconductor Bull 3X ETF, surged an astonishing 11.6% on Monday.
SOXL delivered a much higher one-year return but also experienced a dramatically deeper five-year drawdown than SPXL. Both funds charge nearly identical expense ratios and reset their 3x leverage daily, amplifying both gains and losses.
Leveraged ETFs demand a different monitoring framework than buy-and-hold funds, and SOXL's 3x daily exposure to semiconductors makes the distinction especially sharp.
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.