Better High-Growth ETF: TQQQ vs. SOXL

Core Insights - Direxion Daily Semiconductor Bull 3X Shares (SOXL) and ProShares - UltraPro QQQ (TQQQ) are both leveraged ETFs with 3x daily returns but differ in sector focus and risk profiles [2] Cost & Size - SOXL has an expense ratio of 0.89% and AUM of $13.9 billion, while TQQQ has a slightly higher expense ratio of 0.97% and AUM of $29.3 billion [3] - The 1-year return for SOXL is 46.6%, compared to TQQQ's 20.7% [3] - SOXL has a dividend yield of 0.5%, while TQQQ offers a higher yield of 1.4% [4] Performance & Risk Comparison - SOXL has a maximum drawdown of 90.51% over five years, while TQQQ's drawdown is 81.76% [5] - An investment of $1,000 in SOXL would grow to $1,427 over five years, whereas the same investment in TQQQ would grow to $2,564 [5] Sector Exposure - TQQQ provides exposure to the Nasdaq-100, with significant holdings in technology (54%), communication services (17%), and consumer cyclicals (13%), including major companies like Nvidia, Apple, and Microsoft [6] - SOXL focuses exclusively on the semiconductor industry, with top holdings in Broadcom, Advanced Micro Devices, and Micron Technology [7] Volatility and Investment Implications - SOXL is more volatile with a higher beta of 5.32 compared to TQQQ's beta of 3.47, indicating greater price fluctuations [3][8] - The concentrated nature of SOXL can lead to amplified gains and losses, particularly in volatile markets, while TQQQ's diversification may mitigate single-industry risks [8][9] - Both ETFs carry inherent volatility, but their differing approaches to sector exposure and risk management are crucial for investors to consider [10]