Better High-Return ETF: SOXL vs. SPXL

The most notable differences between the Direxion Daily S&P 500 Bull 3X Shares ETF (NYSEMKT:SPXL) and the Direxion Daily Semiconductor Bull 3X Shares ETF (NYSEMKT:SOXL) are sector concentration, risk profile, and five-year performance swings, with SOXL offering more volatility and a heavier tech tilt.

Both Direxion Daily S&P 500 Bull 3X Shares (SPXL) and Direxion Daily Semiconductor Bull 3X Shares (SOXL) are leveraged exchange-traded funds designed for traders seeking amplified daily moves. SPXL tracks the S&P 500 (SNPINDEX:^GSPC), while SOXL targets the semiconductor industry.

This comparison highlights their cost, recent returns, risk, liquidity, and portfolio makeup to help investors decide which approach may appeal for a tactical bet.

Snapshot (cost & size)

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.

SPXL has a 0.87% annual expense ratio, and SOXL has a 0.75% expense ratio, making them similarly priced for leveraged funds. SPXL offers a slightly higher dividend yield, while SOXL pays a bit less, reflecting the income profile of their underlying holdings.

Performance & risk comparison

What's inside

SOXL is a pure-play bet on the semiconductor sector, with 100% of assets in technology and just 44 holdings. Its largest positions include Advanced Micro Devices (NASDAQ:AMD), Broadcom (NASDAQ:AVGO), and Nvidia (NASDAQ:NVDA). The fund has operated for nearly 16 years and resets its 3x leverage daily, which can lead to performance drift over time, especially in volatile markets.

SPXL spreads its exposure across the entire S&P 500, providing broader sector diversification — technology makes up 36%, with financial services and consumer cyclicals also featuring prominently. Its top holdings are Nvidia, Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT). Like SOXL, it employs daily leverage resets, which can amplify both gains and losses if held longer than a day.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investors

The Direxion Daily S&P 500 Bull 3X Shares (SPXL) and Direxion Daily Semiconductor Bull 3X Shares (SOXL) are both for investors who are after high-risk, high-reward vehicles for short-term trading. Neither is appropriate for long-term buy-and-hold investing, given their extreme volatility and high leverage, which can amplify losses.

SOXL is more for investors who want to target the semiconductor industry, which is hot right now thanks to the rise of artificial intelligence. But that focus on a single sector elevates the risk, especially if the current AI frenzy turns out to be a bubble that suddenly bursts.

SPXL is a bit more of a safe investment compared to SOXL in that its holdings are more diversified over a number of industries due to its focus on the entire S&P 500. This is also illustrated in its much smaller max drawdown. So if the AI market should cool off, this ETF is still buoyed by its non-AI stocks. But that comes with a slightly higher expense ratio.

SOXL is great for investors who want to take advantage of the hot AI field, while SPXL is for those who prefer a little more safety and are willing to accept a higher expense ratio for that.

Glossary

Leveraged ETF: An exchange-traded fund using financial derivatives to amplify daily returns, often by 2x or 3x the underlying index.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges investors to cover operating costs.
Drawdown: The percentage decline from a fund’s peak value to its lowest point over a specific period.
Beta: A measure of an investment’s volatility compared to the overall market, typically the S&P 500.
Dividend yield: Annual dividends paid by a fund, expressed as a percentage of its current price.
AUM (Assets Under Management): The total market value of assets that a fund manages on behalf of investors.
Sector concentration: The extent to which a fund’s assets are invested in a particular industry or sector.
Daily leverage reset: The process by which leveraged ETFs adjust their exposure each day to maintain a target multiple of the index’s daily return.
Performance drift: The divergence of a leveraged ETF’s long-term returns from its expected multiple due to daily compounding and volatility.
Max drawdown: The largest observed loss from a fund’s peak to trough during a specific time frame.
Growth of $1,000: The value to which a $1,000 investment would have grown over a stated period, including reinvested returns.
Pure-play: A fund or company focused exclusively on a single industry or sector, with little diversification.

Robert Izquierdo has positions in Advanced Micro Devices, Apple, Broadcom, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Microsoft, and Nvidia. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.