⚖️ SOXX vs SOXL Comparison · Free & No Signup

SOXX vs SOXL: The Semiconductor ETF vs. Its 3x Leveraged Version

SOXX is a semiconductor sector fund for investors. SOXL applies 3x daily leverage to the same sector. It is a trading instrument, not a buy-and-hold investment.

💰 SOXX is cheaper 🔬 Compare top 10 holdings → 💡 Plain-English verdict
🤝 BFF Take
SOXX for Investors. SOXL Only for Short-Term Traders Who Understand Leverage Decay.

SOXX (iShares Semiconductor ETF) and SOXL (Direxion Daily Semiconductor Bull 3X ETF) are not comparable buy-and-hold investments. SOXX holds ~30 semiconductor stocks and is designed to track the semiconductor sector over any time horizon. SOXL uses daily derivatives to deliver 3x the daily return of a semiconductor index, resetting that leverage every single day. The daily reset creates volatility decay: in a choppy market, SOXL loses value even if the underlying semiconductor index ends up flat. In a sustained bull market for semiconductors, SOXL can produce extraordinary gains. In a sustained downturn, it can lose 90%+ before the underlying sector falls by half. SOXL is not SOXX with higher upside. It behaves like a fundamentally different instrument. For long-term exposure to semiconductors, SOXX is the appropriate tool. SOXL should only be held by investors who understand leverage mechanics and are actively managing short-term positions.

📋 Quick Takeaways
⚠️SOXL resets leverage daily. In volatile markets, it loses value even when semiconductors trade sideways. This is called volatility decay or "beta slippage."
📉During the 2022 semiconductor correction, SOXX fell ~40%. SOXL fell ~90%. The 3x leverage does not simply triple the SOXX loss. It can be far worse.
💰SOXL charges 0.76% vs SOXX's 0.35%. Higher fees compound on top of the decay risk for longer-term holders.
📊 Data-Based Take: SOXX 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
SOXX
iShares Semiconductor ETF
Expense Ratio
0.35% ✓
1-Year Return
+138.4%
AUM
$47.8B
Holdings
30
SOXL
Direxion Daily Semiconductor Bull 3X Shares
Expense Ratio
0.76%
1-Year Return
+625.5%
AUM
$31.6B
Holdings
1

📋 SOXX vs SOXL — Key Facts Side by Side

Metric SOXX SOXL
Fund Name iShares Semiconductor ETF Direxion Daily Semiconductor Bull 3X Shares
Issuer iShares Direxion
Tracks Index ICE Semiconductor Index 3x ICE Semiconductor Index (Daily)
Expense Ratio 0.35% ✓ 0.76%
Cost per $10K/yr $35.00 $76.00
AUM $47.8B $31.6B
Holdings 30 1
Inception 2001 2010
1-Year Return +138.42% +625.51%
3-Year Return +53.28% +104.35%
5-Year Return +32.52% +36.55%
Dividend Yield 0.23%
Holdings Overlap See holdings overlap →
Avg Bid-Ask Spread 0.01% 0.02%

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

📊 SOXX vs SOXL — Annualised Returns

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

🎯 Which Fund Fits Which Investor?

Often fits investors who...
SOXX
  • want the lowest fees: saves ~$41/yr per $10K vs SOXL
  • want broader diversification (30 holdings vs 1)
Often fits investors who...
SOXL
  • already use Direxion and prefer staying within one fund family

💰 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.

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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❓ SOXX vs SOXL — Frequently Asked Questions

No. SOXX (iShares Semiconductor ETF) is a standard, unleveraged ETF that holds roughly 30 semiconductor companies including Nvidia, Broadcom, and TSMC. It charges 0.35% and behaves like any sector ETF — it rises and falls with semiconductor stocks. SOXL is an entirely different product: a 3x daily leveraged ETF from Direxion that aims to return three times the daily move of the ICE Semiconductor Index. Owning SOXX means owning semiconductor stocks through a fund. Owning SOXL means using derivatives to amplify semiconductor exposure by 3x each trading day, which introduces volatility decay and the possibility of catastrophic drawdowns.
Technically yes. Practically, it is a very difficult instrument to hold long term because of volatility decay and the magnitude of drawdowns. SOXL fell approximately 90% during the 2022 semiconductor correction. Recovering from a 90% loss requires a 900% gain. Many investors who bought SOXL as a long-term semiconductor bet during that correction capitulated before the recovery. SOXX, which fell 40% in the same period, is much more survivable for long-term investors.
SOXL resets its leverage each day. If semiconductors fall 10% on Monday and rise 10% on Tuesday, SOXL loses money despite the index returning to its starting point. Example: $100 in SOXL, semiconductors fall 10% → SOXL loses 30% → $70. Semiconductors rise 10% → SOXL gains 30% → $91. The index is flat. SOXL lost 9%. This effect compounds over time in volatile markets, which semiconductors consistently are.
SOXL can make sense for short-term traders who have a high-conviction directional view on semiconductors over days or weeks, are actively managing the position, and fully understand leverage mechanics and decay. It is not appropriate as a core holding or as a substitute for SOXX in a diversified portfolio.
In sustained bull markets for semiconductors, SOXL can significantly outperform a simple 3x multiple of SOXX's returns due to compounding gains. In 2023, when semiconductors rallied strongly, SOXL produced exceptional returns. But past performance does not guarantee future results, and those exceptional returns come packaged with the risk of the exceptional losses seen in 2022.

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

📄 SOXX & SOXL Fact Sheets

SOXX Fact Sheet SOXL 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.