SPXL vs. SSO: Do These Leveraged ETFs' Big Swings Pay Off for Investors? Here's What You Need to Know

Core Viewpoint - The ProShares Ultra S&P 500 ETF (SSO) and the Direxion Daily S&P 500 Bull 3X Shares ETF (SPXL) are both leveraged ETFs designed to amplify returns from daily movements in the S&P 500, with SPXL offering triple leverage and SSO offering double leverage, impacting their risk profiles and potential returns [1][2][7]. Cost and Size Comparison - Both SSO and SPXL have an expense ratio of 0.87% and similar costs, but SPXL has a slightly higher dividend yield of 0.75% compared to SSO's 0.69% [3]. - As of December 16, 2025, SSO has a one-year return of 16.54% while SPXL has a return of 17.10% [3]. - SSO has assets under management (AUM) of $7.3 billion, while SPXL has $6.2 billion [3]. Performance and Risk Comparison - Over five years, SSO has a maximum drawdown of -46.73%, while SPXL has a significantly higher drawdown of -63.80% [4]. - An investment of $1,000 would grow to $2,588 in SSO and $3,144 in SPXL over five years, indicating higher potential gains with SPXL but also greater risk [4]. - SPXL's higher beta of 3.07 compared to SSO's 2.02 indicates greater volatility and risk associated with SPXL [3][4]. Portfolio Composition - SPXL holds just over 500 stocks, with significant allocations in technology (35%), financial services (14%), and consumer cyclical (11%), with top holdings including Nvidia, Apple, and Microsoft [5]. - SSO has a similar sector profile and top holdings as SPXL, but with 2x daily leverage [6]. Implications for Investors - Leveraged ETFs like SSO and SPXL present higher risks but also the potential for significant returns, with SPXL offering higher earning potential at the cost of increased volatility [7][8]. - SPXL's total returns have outperformed SSO over the past five years, but its higher max drawdown indicates more severe price fluctuations [8][9].