Big Returns and Big Risk: See How SOXL and SSO Measure Up

Core Insights - The article discusses the differences between two leveraged ETFs: Direxion Daily Semiconductor Bull 3X Shares (SOXL) and ProShares Ultra S&P500 (SSO), highlighting their distinct investment strategies and risk profiles [1][9]. Fund Overview - SOXL focuses exclusively on the semiconductor sector, while SSO aims to double the daily return of the S&P 500 index [1][9]. - SOXL has an expense ratio of 0.75% and an AUM of $12.9 billion, whereas SSO has a higher expense ratio of 0.87% and an AUM of $7.3 billion [3]. Performance Metrics - As of November 28, 2025, SOXL achieved a 1-year return of 47.0%, significantly outperforming SSO's 18.8% return [3]. - The maximum drawdown over five years for SSO was -46.77%, while SOXL experienced a much steeper drawdown of -90.51% [5][10]. - Over five years, a $1,000 investment in SSO would grow to $2,735, compared to $1,525 for SOXL [5]. Sector Concentration - SOXL is highly concentrated with 100% allocation to technology, specifically semiconductors, and holds only 44 positions, including major companies like Broadcom, AMD, and Nvidia [6]. - In contrast, SSO mirrors the S&P 500 with over 500 holdings across various sectors, including technology and financials, with top positions in Nvidia, Apple, and Microsoft [7]. Investment Suitability - SOXL is designed for short-term traders seeking aggressive sector exposure, while SSO offers broader market exposure but with higher volatility [12]. - Despite SSO's better performance compared to the S&P 500, it still does not consistently deliver a 2x return, indicating the inherent risks of leveraged ETFs [12].