SOXL vs. QLD: Two Ways to Leverage Tech, With Very Different Stakes
Key Points
SOXL is even more leveraged and volatile than QLD, with a higher 1-year return but a much steeper long-term drawdown
SOXL focuses exclusively on semiconductor stocks, while QLD tracks the broader tech-heavy Nasdaq-100
Both funds reset leverage daily, amplifying both gains and losses over time
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Triple leverage and a pure semiconductor focus set SOXL apart from broader tech ETFs, raising the stakes for tactical investors.
ProShares - Ultra QQQ (QLD) and Direxion Daily Semiconductor Bull 3X Shares (SOXL) both offer amplified exposure to tech, but SOXL takes risk to another level with triple leverage and a pure-play semiconductor focus, while QLD tracks the broader Nasdaq-100 with double leverage.
Both QLD and SOXL are designed for traders seeking turbocharged exposure to technology, but they differ sharply in both degree and focus. QLD aims to double the daily returns of the Nasdaq-100, while SOXL offers three times the daily moves of the NYSE Semiconductor Index, making it one of the most aggressive sector-leveraged ETFs available.
Snapshot (cost & size)
| Metric | QLD | SOXL |
|---|---|---|
| Issuer | ProShares | Direxion |
| Expense ratio | 0.95% | 0.75% |
| 1-yr return (as of 2025-12-17) | 22.41% | 47.86% |
| Dividend yield | 0.18% | 0.53% |
| Beta | 2.42 | 5.32 |
| AUM | $10.63 billion | $13.6 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
SOXL is slightly more affordable on expenses than QLD, and its dividend payout is modestly higher, though yield is not a primary focus for either fund.
Performance & risk comparison
| Metric | QLD | SOXL |
|---|---|---|
| Max drawdown (5 y) | -63.78% | -90.51% |
| Growth of $1,000 over 5 years | $2,400 | $1,195 |
What's inside
SOXL targets pure-play semiconductor exposure, with 100% of assets in technology and just 44 holdings. Its top positions include Advanced Micro Devices (NASDAQ:AMD), Broadcom (NASDAQ:AVGO), and Nvidia (NASDAQ:NVDA), each accounting for less than 2% of assets. The fund has a track record stretching over 15 years, but its leverage resets daily. That means performance can deviate significantly from the index over periods longer than a day, especially in volatile markets.
QLD, by contrast, tracks the broader Nasdaq-100 Index, which remains heavily weighted toward technology (55%), but also includes meaningful allocations to communication services and consumer cyclical stocks. Top holdings feature Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT). QLD also uses daily leverage reset, so both funds are best suited for short-term tactical trades rather than long-term holding.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
QLD and SOXL may both amplify technology exposure, but they express conviction in very different ways. QLD magnifies moves in the Nasdaq 100, a group of dominant companies backed by scale, recurring revenue, and strong access to capital. Volatility is still amplified, but it is spread across multiple business models rather than tied to a single industry outcome.
SOXL removes that cushion. Its performance depends entirely on semiconductors, where pricing, capital spending, and inventory conditions can change quickly. Triple leverage also accelerates each swing. When momentum builds, gains can stack fast. When conditions turn uneven, the daily reset makes timing and position management more influential than direction alone.
The choice between these funds comes down to how much control an investor wants to keep. QLD provides leveraged exposure to growth leadership with more flexibility around entry and exit. SOXL requires a tighter thesis and active oversight. Both ETFs reward different levels of precision in execution.
Glossary
Leverage: Use of borrowed money or financial derivatives to amplify investment returns, increasing both potential gains and losses.
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding assets like stocks or bonds.
Daily leverage reset: The process of rebalancing a leveraged fund each day to maintain its target leverage ratio.
Max drawdown: The largest percentage drop from a fund's peak value to its lowest point over a specific period.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Beta: A measure of an investment's volatility compared to the overall market, often using the S&P 500 as a benchmark.
Dividend yield: Annual dividends paid by a fund or stock, expressed as a percentage of its current price.
Nasdaq-100 Index: A stock market index of 100 of the largest non-financial companies listed on the Nasdaq exchange.
Semiconductor: A material or industry involved in making chips and electronic components essential for modern electronics.
AUM (Assets Under Management): The total market value of assets that a fund manages on behalf of investors.
Pure-play: A company or fund focused exclusively on a single industry or sector.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
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Eric Trie has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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