⚖️ SOXL vs TQQQ Comparison · Free & No Signup

SOXL vs TQQQ: 3x Chip Stocks vs 3x Nasdaq, Maximum Risk, Maximum Reward

Both are 3x leveraged ETFs designed for short-term tactical trading. SOXL concentrates in semiconductors; TQQQ covers the full Nasdaq-100. Neither is built for buy-and-hold.

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

🤝 BFF Take

TQQQ Is Broader, SOXL Is More Concentrated and More Volatile

SOXL (Direxion Daily Semiconductor Bull 3X) and TQQQ (ProShares UltraPro QQQ) are both 3x leveraged ETFs that reset daily. SOXL amplifies daily moves in the Philadelphia Semiconductor Index (SOX) by 3x, holding a concentrated set of chip stocks including Nvidia, TSMC, AMD, and ASML. TQQQ amplifies the Nasdaq-100 by 3x, a broader 101-stock index including all the mega-cap tech names plus Amazon, Tesla, and Costco. Both suffer from volatility decay. In choppy markets, the daily reset causes the ETF to lose value even if the underlying ends flat. SOXL is more volatile than TQQQ because semiconductors are inherently more cyclical than the full Nasdaq. These are trading vehicles for experienced investors, not long-term holdings.

📋 Quick Takeaways

🔬SOXL = 3x semiconductors only: Nvidia, AMD, TSMC, ASML; maximum concentration in one sub-sector

📈TQQQ = 3x Nasdaq-100: broader 101 stocks; still tech-heavy but more diversified than pure semis

⚠️Both decay over time in sideways markets: daily reset causes compounding losses; not for long-term buy-and-hold

📊 Data-Based Take: TQQQ 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.

✓ Reviewed by a CFA® Charterholder · Data as of Jul 14, 2026 · Educational only, not financial advice

SOXL

Direxion Daily Semiconductor Bull 3X Shares

Expense Ratio

0.74% ✓

1-Year Return

+625.5%

AUM

$31.6B

Holdings

TQQQ

ProShares UltraPro QQQ

Expense Ratio

0.88%

1-Year Return

+82.1%

AUM

$39.0B

Holdings

101

📋 SOXL vs TQQQ — Key Facts Side by Side

Metric	SOXL	TQQQ
Fund Name	Direxion Daily Semiconductor Bull 3X Shares	ProShares UltraPro QQQ
Issuer	Direxion	ProShares
Tracks Index	PHLX Semiconductor Sector Index (3x)	Nasdaq-100 Index (3x)
Expense Ratio	0.74% ✓	0.88%
Cost per $10K/yr	$74.00	$88.00
AUM	$31.6B	$39.0B
Holdings	30	101
Inception	2010	2010
1-Year Return	+625.51%	+82.08%
3-Year Return	+104.35%	+58.25%
5-Year Return	+36.55%	+19.96%
Dividend Yield	—	0.46%
Holdings Overlap	See holdings overlap →
Avg Bid-Ask Spread	0.02%	0.01%

Expense ratio, AUM, and returns updated Jul 14, 2026 from ETF BFF database. Returns are annualised. Not investment advice.

📊 SOXL vs TQQQ — 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 ~$14/yr per $10K vs TQQQ
already use Direxion and prefer staying within one fund family

Often fits investors who...

TQQQ

want broader diversification (101 holdings vs 30)
want tech-heavy large-cap growth exposure via Nasdaq-100 Index (3x)

💰 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 TQQQ — Frequently Asked Questions

Is SOXL or TQQQ better?

In semiconductor bull markets like 2023-2024, SOXL dramatically outperforms TQQQ because it concentrates the 3x leverage on the fastest-moving sector. In bear markets or sector rotations where chips underperform, SOXL falls harder. TQQQ is more diversified across 101 stocks, making it less volatile than SOXL. For broad leveraged tech exposure, TQQQ is less risky. For pure semiconductor leverage, SOXL is the choice.

What is volatility decay in leveraged ETFs?

Volatility decay (also called beta slippage) occurs because leveraged ETFs reset daily. If an index falls 10% then rises 10%, a 3x fund doesn't break even. It ends lower. Example: $100 → falls 30% to $70 → rises 30% to $91, a 9% loss despite the index returning 0%. The higher the volatility and the longer the holding period, the more decay compounds against the investor. This is why leveraged ETFs are designed for short-term tactical trading, not long-term holding.

Can I lose everything in SOXL or TQQQ?

You cannot technically lose more than your investment in an ETF, but you can lose nearly all of it. In the 2022 bear market, SOXL fell approximately 90% from its peak. TQQQ fell roughly 80%. If you held from peak to trough, your $10,000 became $1,000 or less. These are not products where you "buy and forget." They require active monitoring and risk management.

Who should use SOXL or TQQQ?

Experienced traders with short time horizons who have conviction on directional moves in semiconductors (SOXL) or tech (TQQQ). Some investors use small positions in leveraged ETFs to gain amplified upside on a specific thesis without deploying more capital. Neither fund is appropriate for retirement accounts or as a core holding. Risk management, including position sizing and stop losses, is essential.

What is SOXX vs SOXL?

SOXX is the iShares Semiconductor ETF, a 1x (unleveraged) semiconductor fund at 0.35%. SOXL is Direxion's 3x leveraged version of a semiconductor index. SOXX is for long-term investors who want semiconductor exposure; SOXL is for tactical traders who want amplified daily moves. See our SOXX vs SMH comparison for the unleveraged semiconductor ETF comparison.

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

📄 SOXL & TQQQ Fact Sheets

SOXL Fact Sheet→ TQQQ 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.