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SPXL Direxion Daily S&P 500 Bull 3X Shares

Category: Leveraged Equities

Inception: 2008-11-05 Issuer: Rafferty Asset Management
Net Assets
$4B
Expense Ratio
N/A
# of Holdings
507
Average Daily Volume
5.24M

Fund Overview

The Direxion Daily S&P 500 Bull 3X Shares (SPXL) is a leveraged ETF designed to deliver three times the daily performance of the S&P 500 Index. This fund is intended for short-term trading and is not suitable for long-term buy-and-hold investors due to the effects of compounding and volatility decay. SPXL achieves its leveraged exposure through the use of financial derivatives, including swaps and futures contracts. The fund resets its leverage daily, meaning it aims to provide 300% of the daily return of the S&P 500, not its long-term performance. Investors should carefully consider their risk tolerance and investment horizon before trading SPXL.
Asset Class
Equity
Industry
N/A
Annual Dividend Rate
Smart Beta
No
Leveraged / Inverse
N/A / No
Dividend Quality - Yield
 - N/A
Currency Hedged
No
Portfolio Turnover
29 %
Dividend Date

Why Invest in the SPXL ETF?

Potential Benefits

  • Provides 3x leveraged daily exposure to the S&P 500, amplifying short-term gains in bullish markets.
  • Offers a cost-effective way to gain leveraged exposure without using margin accounts or options.
  • High liquidity and tight bid-ask spreads facilitate efficient trading.
  • Can be used for tactical short-term positions or hedging strategies.
  • Transparent daily rebalancing ensures consistent leverage exposure.

Potential Risks

  • Leveraged ETFs are highly volatile and can experience significant losses in declining or sideways markets.
  • Daily reset mechanism leads to compounding effects that may diverge from long-term index performance.
  • Not suitable for long-term holding due to volatility decay eroding returns over time.
  • Higher expense ratio compared to non-leveraged S&P 500 ETFs.
  • Performance may deviate from expectations during periods of extreme market volatility.

Performance

1 Week 1 Month 1 Year 3 Years 5 Years YTD 2025 2024 Since Inception
-1.29% -4.99% +43.65% +219.56% +139.97% +27.52% +33.02% +66.58% +8503.17%

Performance


Monthly Returns (%)

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2026 +3.3% -3.6% -15.7% +33.3% +15.5% -4.7% -0.9% +7.1% -2.1% - - -
2025 +6.7% -5.1% -17.6% -8.8% +18.2% +15.0% +5.9% +5.0% +9.9% +5.8% -0.7% -0.9%
2024 +3.4% +14.8% +8.9% -13.0% +14.3% +9.8% +1.8% +5.0% +5.1% -4.0% +17.4% -8.5%
2023 +18.3% -8.6% +9.4% +3.7% -0.1% +19.0% +9.0% -6.3% -14.7% -7.9% +28.2% +12.9%
2022 -15.8% -9.9% +10.1% -25.4% -2.1% -24.9% +28.8% -13.3% -26.8% +23.2% +14.5% -17.7%
2021 -3.8% +7.9% +13.3% +16.2% +1.3% +6.6% +6.8% +9.0% -13.8% +21.7% -2.7% +13.2%
2020 -0.9% -23.3% -48.2% +37.2% +13.4% +3.3% +17.7% +21.9% -12.2% -8.6% +35.2% +11.2%
2019 +24.0% +9.3% +4.9% +11.8% -18.7% +21.5% +3.6% -6.7% +5.4% +5.6% +10.8% +8.4%
2018 +16.9% -12.8% -8.7% -0.2% +6.5% +1.5% +10.4% +9.3% +1.3% -20.8% +4.3% -26.2%
2017 +5.0% +11.9% -0.2% +2.7% +3.7% +1.4% +5.9% +0.2% +5.6% +6.9% +8.8% +3.6%
< -5% -5% to -2% -2% to 0% 0% 0% to +2% +2% to +5% > +5%

Top Holdings (by weight)

Symbol Company Name Weight
MSFT MICROSOFT CORP 4.6 %
AAPL APPLE INC 4.5 %
NVDA NVIDIA CORP 4.1 %
AMZN AMAZON.COM INC 2.8 %
META META PLATFORMS INC CLASS A 1.9 %
BRK-B BERKSHIRE HATHAWAY INC CLASS B 1.6 %
GOOGL ALPHABET INC CLASS A 1.5 %
AVGO BROADCOM INC 1.3 %
GOOG ALPHABET INC CLASS C 1.2 %
TSLA TESLA INC 1.1 %
Top 10 holdings shown, out of 507 total holdings.

Related ETFs: SPXL vs Peers

ETF Full Name Expense Ratio Net Assets Holdings Asset Class
IVV iShares Core S&P 500 ETF 0.03 % $579.9B 505 Equity
QLD ProShares Ultra QQQ N/A $6.5B 108 Equity
SDS ProShares UltraShort S&P500 N/A $450.2M 4 Equity
SPXU ProShares UltraPro Short S&P500 N/A $546.7M 8 Equity
SPY SPDR S&P 500 ETF Trust 0.09 % $576B 504 Equity
SSO ProShares Ultra S&P 500 N/A $4.8B 510 Equity
TQQQ ProShares UltraPro QQQ N/A $19.6B 114 Equity
UBT ProShares Ultra 20+ Year Treasury N/A $110.7M 4 Bond
UPRO ProShares UltraPro S&P500 N/A $3.3B 512 Equity
VOO Vanguard S&P 500 ETF 0.03 % $1300B 506 Equity
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.

Investment Strategy

SPXL seeks to deliver 300% of the daily performance of the S&P 500 Index. It achieves this through a combination of financial derivatives, primarily total return swaps and futures contracts. The fund does not directly hold the stocks in the S&P 500 but instead uses these derivatives to gain leveraged exposure. The portfolio is rebalanced daily to maintain the target leverage ratio, which means the fund's performance may diverge significantly from 3x the S&P 500's return over longer periods due to compounding effects. The S&P 500 is a market-cap-weighted index of large-cap U.S. stocks across all sectors.

Frequently Asked Questions

Is SPXL suitable for long-term investing?

No, SPXL is designed for short-term trading only. The daily reset mechanism and compounding effects can cause significant performance divergence from 3x the S&P 500's long-term returns.

How does SPXL achieve 3x leverage?

SPXL uses financial derivatives like swaps and futures contracts to gain 300% exposure to the daily performance of the S&P 500 Index, rather than holding the underlying stocks directly.

What happens to SPXL when the market is volatile?

During periods of high volatility, SPXL may experience amplified gains or losses, and the compounding effects can be particularly pronounced, potentially leading to significant deviations from expected performance.

Can SPXL lose more than my initial investment?

While the fund itself cannot go negative, extreme market movements could theoretically cause near-total loss of investment value. However, the daily reset mechanism helps prevent obligations beyond the initial investment.

Industry Overview

SPXL operates in the leveraged and inverse ETF segment, which provides magnified exposure to broad market indices like the S&P 500. These products are primarily used by sophisticated traders and institutional investors for short-term positioning, hedging, or tactical allocation strategies. The S&P 500 itself represents 500 of the largest U.S. publicly traded companies across all sectors, making it a benchmark for the overall U.S. equity market. Leveraged ETFs like SPXL have grown in popularity but require careful understanding of their mechanics and risks.

Alternative Comparison

Compared to UPRO (ProShares UltraPro S&P 500), SPXL offers similar 3x leveraged exposure to the S&P 500 but may differ slightly in its derivative implementation and expense ratio. Both funds reset leverage daily and carry similar risks. For investors seeking less aggressive exposure, SSO (ProShares Ultra S&P 500) provides 2x leverage. Non-leveraged alternatives like SPY or IVV track the S&P 500 without magnification, making them more suitable for long-term investors. SPXL distinguishes itself with Direxion's focus on leveraged products and typically offers tight spreads for active traders.

Issuer Overview

Direxion is a specialized ETF issuer known for its leveraged and inverse products. The firm focuses on providing tools for short-term traders and tactical investors, with a lineup that includes both bullish and bearish leveraged ETFs across various asset classes. Direxion's products are designed with daily reset mechanisms and clear risk disclosures to help investors understand their characteristics.

Conclusion

SPXL serves as a powerful tool for experienced traders looking to magnify their short-term exposure to the S&P 500. While it can generate substantial returns during strong up markets, the fund carries significant risks that make it inappropriate for most long-term investors. Those considering SPXL should thoroughly understand leveraged ETF mechanics, monitor positions closely, and implement strict risk management strategies. The fund is best used as part of a broader, diversified trading approach rather than as a core holding.

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