What does 'daily 3x leverage' mean in these funds?

Daily 3x leverage means SPXL aims to deliver three times the daily percentage change of its benchmark, while SPXS aims for the opposite direction. These targets reset each trading day, so multi-day returns may differ from three times cumulative index moves due to compounding effects. Investors should understand that daily rebalancing can cause significant drift over longer holding periods.

How do SPXL and SPXS provide inverse exposure?

SPXL offers leveraged long exposure, seeking to multiply positive daily moves in its underlying market. SPXS provides leveraged inverse exposure, aiming to profit from negative daily moves in the same market. Neither fund uses traditional short-selling of individual stocks; both rely on derivatives to achieve their stated objectives. The two funds have opposite directional exposures.

What is compounding drift in leveraged ETFs?

Compounding drift occurs because leveraged ETFs reset their exposure daily. For example, if a market falls then rises by the same percentage, the leveraged fund may lose more than the benchmark due to the arithmetic of percentage changes. This effect makes daily leveraged funds less predictable over multi-day periods than their single-day targets suggest.

How do the expense ratios of SPXL and SPXS differ?

SPXL has an expense ratio of 0.84%, while SPXS has an expense ratio of 1.04%. This means SPXS costs 0.20 percentage points more to hold annually. Higher fees directly reduce net returns over time, which is particularly important for leveraged funds that already incur derivative costs. Both ratios are higher than those for standard market-cap-weighted index ETFs.

How do dividend yields differ between SPXL and SPXS?

SPXL reports a dividend yield of 0.48%, whereas SPXS shows a higher yield of 4.94%. The yield figures reflect different funding mechanics rather than underlying equity dividends. Leveraged ETFs often generate distributions from derivative financing rather than from company dividends, so investors should not interpret these yields as income streams comparable to traditional equity funds.

Which investing goals are SPXL and SPXS typically associated with?

SPXL is generally associated with short-term bullish tactics, as it seeks amplified gains when markets rise. SPXS is typically linked to short-term bearish or hedging strategies, aiming to benefit when markets decline. Neither fund is designed for long-term buy-and-hold allocation due to daily rebalancing and compounding effects. Use in portfolios requires careful consideration of holding periods.

What is the asset base of each fund, and why does it matter?

SPXL has net assets of $7.1 billion, indicating substantial liquidity and trading volume. SPXS has net assets of $348 million, a significantly smaller base. Larger asset bases typically support tighter bid-ask spreads and more efficient order execution, while smaller funds may experience wider spreads and greater price impact during volatile market periods.

How similar are the top holdings of SPXL and SPXS?

SPXL lists NVDA, AAPL, MSFT, AMZN, and GOOGL among its top holdings, reflecting diversified exposure across major S&P 500 constituents. SPXS has no reported top holdings, as inverse funds primarily hold derivatives rather than physical equities. There is no overlap between their disclosed top-10 holdings, as the two funds use fundamentally different portfolio structures.

What index does each fund track?

The fund data does not specify which benchmark index either SPXL or SPXS tracks directly. However, their fund names indicate they target the S&P 500 index, with SPXL seeking three times daily gains and SPXS seeking three times daily losses. Investors should verify the exact benchmark methodology in the fund prospectus before trading.

How do ETF distributions work for leveraged funds?

ETFs like SPXL and SPXS may distribute capital gains or income from derivative positions periodically. Distribution schedules vary by fund and can differ from calendar years. Leveraged funds' distributions often reflect financing costs rather than dividends from underlying companies, so investors should check each fund's current distribution policy and recent history.

What should investors know about holding periods for these ETFs?

Both SPXL and SPXS are structured for short-term holding due to daily rebalancing mechanics. Extended holding periods can lead to compounding effects that cause returns to diverge significantly from the multiple of cumulative market performance. Investors should carefully review performance over their intended holding period and understand that past daily returns do not guarantee similar outcomes over time.

SPXL vs SPXS

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

Compare Direxion Daily S&P 500 Bull 3X ETF (SPXL) and Direxion Daily S&P 500 Bear 3X Shares (SPXS). This page examines fees, holdings, dividends and how each fund tracks its market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SPXL

Metric

SPXS

0.84%

Expense Ratio

1.04%

0.48%

Dividend Yield

4.94%

$7.12B

Net Assets

$348.48M

530

Holdings

Nov 5, 2008

Inception Date

Nov 5, 2008

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Index Tracked

–

Trading--Leveraged Equity

Fund Category

Trading--Inverse Equity

SPXL costs about $20.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

Discover More Comparisons

SPXL vs UPRO

Compare SPXL and UPRO 3x S&P 500 ETFs. Review expense ratios, net assets, yields and holdings to understand key differences and tracking methods.

Investment Analysis

SPXL

Pros

Diversifies across S&P 500 companies, evidenced by top holdings including NVDA, AAPL, and MSFT.
Substantial asset base of $7.1 billion supports reasonable trading liquidity for retail investors.
Established track record since its November 2008 inception provides extensive historical volatility data.

Considerations

0.84% expense ratio is substantially higher than standard market-cap-weighted index ETFs.
Daily 3x leverage causes compounding drift, making it unsuitable for long-term holding strategies.
Low dividend yield of 0.48% reflects the inherent cost of using derivative swaps for leverage.

SPXS

Pros

High 4.94% yield may be tax-efficient as it derives from derivative swap financing rather than dividends.
Provides three-fold inverse exposure for short-term tactical trading against the S&P 500 index.
Same November 2008 inception date as its bull counterpart provides substantial long-term volatility history.

Considerations

Expense ratio of 1.04% is notably high for an index-tracking ETF structure.
Smaller $348 million asset base may present wider bid-ask spreads than larger funds.
Holding data is unavailable, preventing assessment of specific underlying derivative or equity exposures.

About SPXL and SPXS

SPXL (SPXL)

The Direxion Daily S&P 500 Bull 3X ETF (SPXL) is a trading-focused fund designed for investors seeking to amplify returns from the S&P 500 index. It aims to deliver three times the daily percentage change of the underlying index. This means if the S&P 500 rises 1% in a day, SPXL seeks to rise 3%. Conversely, if the index falls 1%, SPXL seeks to fall 3%. While this can enhance gains during upward trends, it also significantly increases risk. This ETF uses financial derivatives to achieve its objectives and is not intended for long-term buy-and-hold strategies due to the impact of daily resetting and volatility. With an expense ratio of 0.84% and net assets of USD 7.12 billion, it is a well-established vehicle for active traders. Remember, leveraged funds can lose value quickly, and returns are not guaranteed.

SPXS (SPXS)

The Direxion Daily S&P 500 Bear 3X Shares (SPXS) is an exchange-traded fund designed to provide investors with inverse exposure to the daily performance of the S&P 500 Index. Specifically, it aims to deliver three times the opposite of the daily return of the index. This instrument is primarily used by sophisticated traders for short-term hedging or speculation during market downturns. It is crucial for investors to understand that leverage amplifies both gains and losses, and the fund is not intended for long-term buy-and-hold strategies due to the effects of compounding and daily resets. While the fund reports a dividend yield, its primary utility lies in tactical trading rather than income generation. Investors should be aware of the risks associated with leveraged and inverse products, as values can fluctuate significantly and returns are not guaranteed.

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SPXL vs SPXS

Fund Snapshot

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SPXL vs UPRO

Investment Analysis

SPXL

Pros

Considerations

SPXS

Pros

Considerations

About SPXL and SPXS

Buy SPXL or SPXS in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What does 'daily 3x leverage' mean in these funds?

How do SPXL and SPXS provide inverse exposure?

What is compounding drift in leveraged ETFs?

How do the expense ratios of SPXL and SPXS differ?

How do dividend yields differ between SPXL and SPXS?

Which investing goals are SPXL and SPXS typically associated with?

What is the asset base of each fund, and why does it matter?

How similar are the top holdings of SPXL and SPXS?

What index does each fund track?

How do ETF distributions work for leveraged funds?

What should investors know about holding periods for these ETFs?

Fund Snapshot

About SPXL and SPXS

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SPXL vs UPRO