SOXL vs. QLD: Two Ways to Leverage Tech, With Very Different Stakes

Core Insights - Both ProShares - Ultra QQQ (QLD) and Direxion Daily Semiconductor Bull 3X Shares (SOXL) provide amplified exposure to technology, with SOXL utilizing triple leverage and focusing solely on semiconductors, while QLD tracks the broader Nasdaq-100 with double leverage [2][3][10] Group 1: Fund Characteristics - QLD aims to double the daily returns of the Nasdaq-100, while SOXL offers three times the daily moves of the NYSE Semiconductor Index, making SOXL one of the most aggressive sector-leveraged ETFs available [3][10] - QLD has an expense ratio of 0.95% and a 1-year return of 22.41%, while SOXL has a lower expense ratio of 0.75% and a significantly higher 1-year return of 47.86% [4][5] - SOXL has a maximum drawdown of -90.51% over five years, compared to QLD's -63.78%, indicating higher risk associated with SOXL [6] Group 2: Portfolio Composition - SOXL targets pure-play semiconductor exposure, with 100% of assets in technology and 44 holdings, including major companies like Advanced Micro Devices, Broadcom, and Nvidia [7] - QLD tracks the broader Nasdaq-100 Index, which is heavily weighted toward technology (55%) but also includes allocations to communication services and consumer cyclical stocks, with top holdings including Nvidia, Apple, and Microsoft [8] Group 3: Investment Strategy - The choice between QLD and SOXL depends on the investor's desired level of control; QLD offers leveraged exposure with more flexibility, while SOXL requires a tighter investment thesis and active management [12] - SOXL's performance is highly dependent on semiconductor market conditions, making timing and position management crucial for investors [11]