What exactly are leveraged ETFs?

Leveraged ETFs use financial derivatives to amplify the daily return of an underlying index by a fixed multiple. Unlike standard ETFs that simply track an index's performance, leveraged funds multiply gains and losses based on the fund's stated ratio. This amplification occurs on a day-to-day basis, making their mechanics distinct from traditional long-term investments.

What does the 3x leverage in these funds signify?

SOXL and SOXS both offer 3x daily leverage. This means they aim to return three times the daily percentage change of their underlying semiconductor index. For example, if the index rises or falls one percent in a single day, the fund aims to reflect a three percent change. This magnifies both daily gains and losses for the investor.

How do the expense ratios differ between SOXL and SOXS?

The expense ratio is the annual fee paid to the fund manager. SOXL charges 0.75% per year, while SOXS charges 1.00%. This means SOXS has a higher ongoing cost, representing a difference of 0.25 percentage points. Investors deducting these fees from their capital may find the lower fee structure of SOXL less burdensome over time.

What is the significance of the different net assets?

Net assets indicate the fund's total size and can influence liquidity. SOXL holds $21.6 billion in net assets, whereas SOXS manages $1.6 billion. The larger size of SOXL typically suggests more robust liquidity, allowing for easier buying and selling of shares. The smaller asset base of SOXS reflects less capital invested by participants.

How do the top holdings of SOXL differ from SOXS?

A direct comparison reveals that none of the listed top-10 holdings overlap between the two funds. SOXL's top holdings include companies like AMD and NVDA, with weights like 1.94% and 1.91%. In contrast, specific top holding details for SOXS are not available for comparison, highlighting that while related, the funds present distinctly different portfolio information.

What market views do SOXL and SOXS represent?

SOXL is designed for a bullish outlook on the semiconductor market, while SOXS aims to profit from a bearish decline. Both funds track a semiconductor index but move in opposite directions when it fluctuates. This structural difference allows investors to express views on the sector's future performance without shorting stocks directly.

What index do these semiconductor ETFs track?

While both funds are semiconductor-focused, the exact custom index tracked is listed as 'not available' for both SOXL and SOXS. Investors should understand that these funds track a specific, unpublished methodology related to the semiconductor sector, requiring reliance on daily performance rather than index composition for guidance.

Is SOXS a reliable source of investment income?

SOXS shows a dividend yield of 65.38%, but this figure is generally considered an artifact of the inverse leveraged structure and not a steady income stream. ETF distributions vary. Conversely, SOXL offers a 0.01% yield, confirming that neither product serves as a dependable, traditional source of passive income for retail investors.

Which fund is more established based on inception dates?

SOXL and SOXS both share the same inception date of 11 March 2010. They launched simultaneously and have been operational for the exact same duration. Consequently, there is no distinction in market history or operational longevity between the bull and bear variants of these semiconductor funds.

SOXL vs SOXS

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare SOXL and SOXS, Direxion's leveraged semiconductor ETFs. This page examines fees, holdings, dividends, and market tracking. Note the 0.75% and 1.00% expense ratios. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SOXL

Metric

SOXS

0.75%

Expense Ratio

1.00%

0.01%

Dividend Yield

65.38%

$21.62B

Net Assets

$1.57B

Holdings

Mar 11, 2010

Inception Date

Mar 11, 2010

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Index Tracked

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Trading--Leveraged Equity

Fund Category

Trading--Inverse Equity

SOXL costs about $25.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

SOXL

Pros

SOXL charges a moderate 0.75% expense ratio for its leveraged structure.
SOXL holds $21.6 billion in net assets, supporting robust liquidity.
SOXL has existed since March 2010, demonstrating operational longevity.

Considerations

SOXL’s 3x daily leverage can magnify losses in a falling semiconductor market.
SOXL’s dividend yield of 0.01% indicates it is unsuitable for income investors.
SOXL tracks a custom leveraged index, as the specific index methodology is not available.

SOXS

Pros

SOXS is an inverse leveraged fund designed to provide 3x the daily negative return.
SOXS has operated since March 2010, offering a long track record for this category.
SOXS charges an expense ratio of 1.00%, a figure consistent with the product type.

Considerations

SOXS’s high 65.38% dividend yield is an artifact of its inverse leverage structure.
SOXS’s 1.00% expense ratio is notably higher than the 0.75% charged by its bull counterpart.
SOXS’s $1.6 billion in net assets is significantly smaller than the bull fund’s asset base.

About SOXL and SOXS

SOXL (SOXL)

The Direxion Daily Semiconductor Bull 3X ETF (SOXL) is an exchange-traded fund designed to provide 300% of the daily performance of the ICE Semiconductor Index. This leveraged product amplifies the movements of semiconductor stocks, meaning it offers three times the potential gains but also three times the potential losses of its underlying index on a daily basis. Investors should note that the impact of compounding means returns over longer periods may deviate significantly from three times the index's cumulative performance. With an expense ratio of 0.75%, it is a high-risk, high-reward vehicle typically used by active traders to speculate on short-term semiconductor trends or as part of a broader tactical asset allocation strategy. Dividends are minimal, and capital preservation is not a primary objective. Past performance is not indicative of future results, and investors may lose more than their initial investment.

SOXS (SOXS)

The Direxion Daily Semiconductor Bear 3X ETF (SOXS) is a leveraged inverse equity fund designed for experienced traders seeking to profit from short-term declines in semiconductor stocks. It aims to deliver three times the inverse daily performance of a major semiconductor industry index. This means if the sector falls by 1% on a given day, the fund targets a 3% gain, but if the sector rises by 1%, it targets a 3% loss. Crucially, this leverage resets daily, making it unsuitable for long-term holding due to potential value erosion from compounding and market volatility. The fund uses complex financial derivatives like swaps and futures rather than holding physical stocks directly. With an expense ratio of 1.00% and no regular dividend payments, it is a high-risk tool primarily used for hedging semiconductor portfolios or speculating on market downturns. Investors should carefully assess their risk tolerance, as losses can exceed the underlying index's decline.

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SOXL vs SOXS

Fund Snapshot