⚖️ SOXL vs SOXS Comparison · Free & No Signup

SOXL vs SOXS: Leveraged Semiconductor ETFs Explained

SOXL and SOXS are opposite sides of the same leveraged bet on semiconductor stocks. Both reset their exposure daily. Both decay from volatility over time. Neither is designed to be held for more than a few days. This is not an investment comparison — it is an explanation of two trading instruments.

💰 SOXL is cheaper 🔬 Compare top 10 holdings → 💡 Plain-English verdict

🤝 BFF Take

Neither Is a Buy-and-Hold Investment. SOXL for Short-Term Bullish Trades. SOXS for Short-Term Bearish Trades.

SOXL (Direxion Daily Semiconductor Bull 3X Shares) and SOXS (Direxion Daily Semiconductor Bear 3X Shares) are leveraged ETFs that provide 3x the daily return of the ICE Semiconductor Index — SOXL on the long side, SOXS on the short side. SOXL charges 0.75%; SOXS charges 1.00%, a third more, because maintaining a short position costs the fund extra. Both reset their leverage daily using derivatives, which means their performance over periods longer than one day diverges from 3x the underlying index due to compounding and volatility decay. In a choppy market where semiconductors bounce around without trending, both SOXL and SOXS can lose money simultaneously over multi-week periods. In 2022, SOXS appeared to be the winning trade — but even during Nvidia's 2023-2024 run, SOXL's daily reset meant the compounded gain was not simply 3x the index return. These products are built for active traders, not investors. Past performance does not guarantee future results.

📋 Quick Takeaways

⚠️Both SOXL and SOXS reset leverage daily. Holding either for weeks or months creates return drag from volatility decay that makes multi-day performance unpredictable.

📉In choppy, non-trending markets, both SOXL and SOXS can lose money simultaneously due to daily compounding math — this is not intuitive but is how leveraged ETFs work.

🔁SOXL is for traders with a short-term bullish view on semiconductors. SOXS is for traders with a short-term bearish view. Neither is appropriate for a long-term portfolio.

📊 Data-Based Take: SOXL has the lower fee

Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.

Both funds trade commission-free at every major brokerage. How the major brokerages compare →

✓ Reviewed by a CFA® Charterholder · Data as of Aug 1, 2026 · Educational only, not financial advice

SOXL

Direxion Daily Semiconductor Bull 3X Shares

Expense Ratio

0.75% ✓

1-Year Return

+376.4%

AUM

$31.6B

Holdings

SOXS

Direxion Daily Semiconductor Bear 3X Shares

Expense Ratio

1.00%

1-Year Return

-99.8%

AUM

$1.3B

Holdings

📋 SOXL vs SOXS — Key Facts Side by Side

Metric	SOXL	SOXS
Fund Name	Direxion Daily Semiconductor Bull 3X Shares	Direxion Daily Semiconductor Bear 3X Shares
Issuer	Direxion	Direxion
Tracks Index	ICE Semiconductor Index (3x Long)	ICE Semiconductor Index (3x Short)
Expense Ratio	0.75% ✓	1.00%
Cost per $10K/yr	$75.00	$100.00
AUM	$31.6B	$1.3B
Holdings	30	30
Inception	2010	2010
1-Year Return	+376.41%	-99.78%
3-Year Return	+60.69%	-84.56%
5-Year Return	+21.64%	-78.49%
Dividend Yield	—	70.00%
Holdings Overlap	See holdings overlap →
Avg Bid-Ask Spread	0.03%	0.05%

Expense ratio, AUM, and returns updated Aug 1, 2026 from ETF BFF database. Returns are annualised. Not investment advice.

📊 SOXL vs SOXS — Annualised Returns

Annualised returns (trailing, price-based). Past performance does not guarantee future results.

🎯 Which Fund Fits Which Investor?

Often fits investors who...

SOXL

want the lowest fees: saves ~$25/yr per $10K vs SOXS

Often fits investors who...

SOXS

want the specific exposure defined by the ICE Semiconductor Index (3x Short)

💰 What the Fee Difference Actually Costs

Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.

Investment amount$ Years held Expected annual return%

Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.

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❓ SOXL vs SOXS — Frequently Asked Questions

What is volatility decay and why does it hurt SOXL and SOXS?

Volatility decay (also called beta slippage) is the mathematical erosion of leveraged ETF returns from daily compounding. Here is a simple example: if SOXL's index goes up 10% on day 1 and down 10% on day 2, the index is at 99% of starting value. SOXL would have gone up 30% on day 1 (to 130%), then down 30% on day 2 (to 91%). The fund lost 9%, while the index only lost 1%. This effect grows with volatility. Semiconductors are highly volatile, making SOXL and SOXS particularly susceptible to decay in sideways or choppy markets.

Can SOXL and SOXS both lose money at the same time?

Yes. In choppy markets where the semiconductor index oscillates without a clear trend, both SOXL and SOXS can decline simultaneously over multi-day or multi-week periods. This is a counterintuitive but mathematically certain property of daily-resetting leveraged ETFs. On any single day, one goes up exactly 3x and the other goes down exactly 3x — they cannot both lose on the same day. But over multiple days with volatility, the compounding math can produce losses in both directions.

Is SOXS a good short against NVDA or the chip sector?

SOXS can be used as a short against the semiconductor sector, but it is an imprecise and expensive tool. The 1.00% annual expense ratio is high, and daily resets mean that a sustained move against your position results in rapidly increasing costs. Buying put options on individual semiconductor stocks or on SOXX (the non-leveraged semiconductor ETF) gives more precise and time-bounded exposure without the daily decay problem. SOXS is designed for intraday or very short-term bearish trades, not sustained short positions.

What is the difference between SOXL and SOXX?

SOXX (iShares Semiconductor ETF) is a standard, non-leveraged ETF that tracks the ICE Semiconductor Index at 1x. It charges 0.35% and is designed for long-term investors who want semiconductor sector exposure. SOXL tracks the same index at 3x leverage, resetting daily, and charges 0.75%. SOXX is an investment vehicle; SOXL is a trading instrument. If you want long-term semiconductor exposure, SOXX (or SMH from VanEck) is the appropriate product.

Have people made money holding SOXL long-term?

Some investors who held SOXL through Nvidia's 2023-2024 AI-driven run saw substantial gains, but the returns were not simply 3x the SOXX index — volatility decay reduced the multiple. SOXL has also experienced devastating drawdowns: it fell roughly 90% from peak to trough in 2022 during the semiconductor bear market. Investors who held through 2021-2023 saw their position fall 90% before recovering. Surviving a 90% drawdown requires either a very small position size or very high risk tolerance — and the math means a 90% loss requires a 900% gain just to break even. Past performance does not guarantee future results.

New to ETF investing? See answers to the most common ETF questions →

📄 SOXL & SOXS Fact Sheets

SOXL Fact Sheet→ SOXS Fact Sheet→

ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.