Average Daily Volume
148.95M
Fund Overview
The Direxion Daily Semiconductor Bull 3X Shares (SOXL) is a leveraged ETF designed to provide three times the daily performance of the PHLX Semiconductor Sector Index (SOX). This ETF is intended for short-term trading and is not suitable for long-term investors due to the effects of compounding and volatility decay. The SOX Index includes companies involved in the design, distribution, manufacture, and sale of semiconductors, making SOXL a high-octane play on the semiconductor industry. Given its leveraged nature, SOXL can experience significant price swings, making it a tool for traders with high risk tolerance and a short investment horizon.
- Asset Class
-
Equity
- Industry
-
Semiconductors
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- N/A
- Currency Hedged
-
No
- Portfolio Turnover
-
145 %
- Dividend Date
-
Why Invest in the SOXL ETF?
Potential Benefits
- Provides 3x leveraged exposure to the semiconductor sector, amplifying daily returns.
- Offers a way to capitalize on short-term bullish trends in the semiconductor industry.
- High liquidity, making it easy to enter and exit positions.
- Diversified exposure to leading semiconductor companies like NVIDIA, Intel, and AMD.
- No need for margin accounts or complex derivatives to achieve leveraged exposure.
Potential Risks
- Leveraged ETFs like SOXL are designed for daily performance and can suffer from volatility decay over time.
- Extremely high volatility makes it unsuitable for risk-averse or long-term investors.
- Performance can diverge significantly from the underlying index over extended periods.
- High expense ratio compared to non-leveraged ETFs.
- Susceptible to sector-specific risks, including cyclical demand and supply chain disruptions.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+47.0%
|
+1.6%
|
-23.7%
|
+165.0%
|
+76.7%
|
+18.9%
|
-57.0%
|
-1.7%
|
+11.6%
|
-
|
-
|
-
|
| 2025 |
-1.1%
|
-15.9%
|
-29.6%
|
-23.8%
|
+33.0%
|
+55.7%
|
-0.5%
|
+4.2%
|
+33.8%
|
+37.1%
|
-13.6%
|
+1.9%
|
| 2024 |
+2.2%
|
+33.5%
|
+8.7%
|
-17.9%
|
+27.3%
|
+14.2%
|
-19.8%
|
-12.6%
|
-5.3%
|
-18.0%
|
-6.7%
|
-2.4%
|
| 2023 |
+50.2%
|
+0.9%
|
+25.1%
|
-22.2%
|
+48.6%
|
+17.6%
|
+14.4%
|
-16.0%
|
-20.8%
|
-21.0%
|
+53.1%
|
+37.9%
|
| 2022 |
-34.5%
|
-8.0%
|
-5.4%
|
-42.7%
|
+11.8%
|
-47.2%
|
+51.4%
|
-29.2%
|
-36.7%
|
+0.7%
|
+54.9%
|
-29.8%
|
| 2021 |
+7.4%
|
+15.9%
|
-1.2%
|
-3.4%
|
+5.1%
|
+14.9%
|
-0.3%
|
+4.9%
|
-14.0%
|
+19.0%
|
+35.7%
|
+5.2%
|
| 2020 |
-11.4%
|
-15.8%
|
-53.7%
|
+38.3%
|
+17.6%
|
+22.2%
|
+20.3%
|
+17.9%
|
-5.2%
|
-1.7%
|
+63.1%
|
+14.9%
|
| 2019 |
+27.7%
|
+19.1%
|
+8.7%
|
+36.7%
|
-43.6%
|
+40.1%
|
+16.2%
|
-10.1%
|
+10.1%
|
+16.5%
|
+11.7%
|
+24.2%
|
| 2018 |
+26.1%
|
-2.9%
|
-9.5%
|
-20.2%
|
+35.5%
|
-14.2%
|
+11.1%
|
+6.9%
|
-7.7%
|
-35.0%
|
+6.3%
|
-21.8%
|
| 2017 |
+12.3%
|
+8.1%
|
+13.0%
|
-2.4%
|
+26.7%
|
-15.9%
|
+14.3%
|
+7.4%
|
+15.2%
|
+28.4%
|
-1.5%
|
-5.3%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
AVGO
|
BROADCOM INC |
6.8 % |
|
NVDA
|
NVIDIA CORP |
6.7 % |
|
TXN
|
TEXAS INSTRUMENTS INC |
6.4 % |
|
QCOM
|
QUALCOMM INC |
5.5 % |
|
AMD
|
ADVANCED MICRO DEVICES INC |
5.4 % |
|
KLAC
|
KLA CORP |
3.7 % |
|
AMAT
|
APPLIED MATERIALS INC |
3.5 % |
|
LRCX
|
LAM RESEARCH CORP |
3.4 % |
|
INTC
|
INTEL CORP |
3.3 % |
|
ASML
|
ASML HOLDING NV ADR |
3.2 % |
Top 10 holdings shown, out of 31 total holdings.
Related ETFs: SOXL vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
SOXL seeks to deliver 3x the daily performance of the PHLX Semiconductor Sector Index (SOX). The index is a market-cap-weighted benchmark of 30 semiconductor companies. The fund uses financial derivatives like swaps and futures to achieve its leveraged exposure. It does not hold physical stocks directly but instead relies on synthetic instruments to replicate the index's performance. Due to the compounding effect, SOXL is rebalanced daily to maintain its target leverage ratio, making it unsuitable for buy-and-hold strategies.
Frequently Asked Questions
Is SOXL suitable for long-term investing?
No, SOXL is designed for short-term trading due to the effects of compounding and volatility decay, which can erode returns over time.
What index does SOXL track?
SOXL seeks to deliver 3x the daily performance of the PHLX Semiconductor Sector Index (SOX), which includes major semiconductor companies.
How does SOXL achieve its 3x leverage?
SOXL uses financial derivatives like swaps and futures to amplify returns, rather than holding physical stocks directly.
What are the main risks of trading SOXL?
Key risks include extreme volatility, daily rebalancing effects, sector-specific downturns, and the potential for significant losses in declining markets.
How does SOXL compare to its inverse counterpart, SOXS?
SOXL provides 3x bullish exposure, while SOXS offers 3x bearish exposure to the same semiconductor index. Both are high-risk, short-term trading instruments.
Industry Overview
The semiconductor industry is a cornerstone of modern technology, powering everything from smartphones to data centers. The PHLX Semiconductor Sector Index (SOX), which SOXL tracks, includes major players like NVIDIA, Intel, and AMD. Investing in semiconductors offers exposure to growth driven by AI, 5G, IoT, and automotive technologies. However, the sector is cyclical, with demand fluctuations tied to global economic conditions. SOXL provides a leveraged way to bet on short-term semiconductor trends, but its high volatility makes it unsuitable for passive investors.
Alternative Comparison
Compared to non-leveraged semiconductor ETFs like SMH or SOXX, SOXL offers amplified returns but comes with significantly higher risk and expense. Its inverse counterpart, SOXS, provides 3x inverse exposure, catering to bearish traders. Unlike SMH, which holds physical stocks, SOXL uses derivatives, adding counterparty risk. Additionally, SOXL's expense ratio (0.99%) is higher than SMH's (0.35%), reflecting the cost of leverage.
Issuer Overview
Direxion is a well-known issuer of leveraged and inverse ETFs, specializing in products designed for short-term traders. The firm offers a range of ETFs that provide magnified exposure to various sectors, industries, and asset classes. Direxion's leveraged ETFs, including SOXL, are popular among active traders seeking to capitalize on short-term market movements.
Conclusion
SOXL is a high-risk, high-reward ETF designed for traders looking to capitalize on short-term semiconductor sector movements. Its 3x leverage amplifies gains but also magnifies losses, making it unsuitable for long-term investors. Before trading SOXL, investors should fully understand leveraged ETFs' mechanics and risks, including volatility decay and daily rebalancing effects.
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