Direxion Daily Semiconductor Bull 3X Shares

SOXL

Market cap $13.6B

SOXL's 3x leverage and semiconductor sector focus create far higher risk and volatility than SSO's broad 2x S&P 500 exposure. SOXL offers a lower expense ratio, but it's suffered a much deeper 5-year max drawdown and lower risk-adjusted returns.

Direxion continues to expand its single-stock ETF offerings for tactical traders. It has introduced five new single stock funds that add exposure to Oracle, Coinbase, Robinhood, and Intel.

Top semiconductor ETFs like the Direxion Daily Semiconductor Bull 3x Shares (SOXL), VanEck Semiconductor (SMH), and iShares Semiconductor (SOXX) rebounded in the extended hours after the strong Nvidia earnings and guidance.  SOXL jumped by over 8% in extended hours, while SMH and SOXX rose by 2.8% and 2.70%, respectively.

The SOXL ETF remains a compelling play on the accelerating AI-driven demand for semiconductors, even after recent overperformance since my last coverage. Warren Buffett's Berkshire Hathaway disclosed a $4.3B stake in GOOGL, timed amid Burry's shorts, signaling long-term AI potential over short-term worries. The ongoing evolution of AI applications, from self-driving vehicles to personalized healthcare, suggests continued exponential growth, supporting the semiconductor bull case.

ProShares UltraPro QQQ and Direxion Daily Semiconductor Bull 3X Shares both aim to deliver three times the daily return of their respective underlying indexes. TQQQ offers broader tech diversification and a longer track record.

On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research, Todd Rosenbluth, discussed the Direxion Daily Semiconductor Bull 3x Shares (SOXL) with Chuck Jaffe of Money Life. The pair discussed several topics related to the fund to give investors a deeper understanding of the ETF.

VettaFi's Head of Research Todd Rosenbluth discussed the Direxion Daily Semiconductor Bull 3X Shares (SOXL) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and strategy, visit the Leveraged & Inverse Content Hub.

Top Performing Leveraged/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

Direxion Daily Semiconductor Bull 3X Shares ETF remains a Buy, driven by strong momentum in semiconductor stocks and continued AI infrastructure investment. SOXL is highly volatile and best suited for short-term, active traders who can time entries and exits; not recommended for long-term holding. Risks are significant due to leverage and compounding effects; investors must actively monitor positions and be prepared for rapid losses.

Top Performing Leveraged/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.