Better High-Return ETF: SOXL vs. SPXL | The Motley Fool

The most notable differences between the Direxion Daily S&P 500 Bull 3X Shares ETF ( SPXL 0.11%) and the Direxion Daily Semiconductor Bull 3X Shares ETF ( SOXL +0.00%) 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 ( ^GSPC 0.03%), 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) Metric SPXL SOXL Issuer Direxion Direxion Expense ratio 0.87% 0.75% 1-yr return (as of Dec. 18, 2025) 27.2% 38.6% Dividend yield 0.8% 0.5% AUM $6.0 billion $13.9 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. 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 Metric SPXL SOXL Max drawdown (5 y) (63.84%) (90.51%) Growth of $1,000 over 5 years $3,078 $1,280 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 ( AMD 0.02%), Broadcom ( AVGO +0.55%), and Nvidia ( NVDA +1.02%). 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 ( AAPL 0.15%), and Microsoft ( MSFT 0.06%). 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...

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