Better High-Return ETF: SOXL vs. SPXL

Core Insights - The Direxion Daily S&P 500 Bull 3X Shares ETF (SPXL) and the Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) differ significantly in sector concentration, risk profile, and performance volatility, with SOXL exhibiting higher volatility and a stronger focus on technology [1][2]. Group 1: Cost and Size - SPXL has an expense ratio of 0.87% while SOXL has a lower expense ratio of 0.75%, making them comparably priced for leveraged funds [4]. - As of December 18, 2025, SPXL reported a 1-year return of 27.2% compared to SOXL's 38.6% [3]. - SPXL has assets under management (AUM) of $6.0 billion, while SOXL has a significantly larger AUM of $13.9 billion [3]. Group 2: Performance and Risk Comparison - Over a five-year period, SPXL experienced a maximum drawdown of 63.84%, whereas SOXL faced a more severe drawdown of 90.51% [5]. - An investment of $1,000 in SPXL would have grown to $3,078 over five years, while the same investment in SOXL would have only grown to $1,280 [5]. Group 3: Portfolio Composition - SOXL is concentrated entirely in the semiconductor sector, with 100% of its assets in technology and only 44 holdings, including major positions in Advanced Micro Devices, Broadcom, and Nvidia [6]. - SPXL provides broader sector diversification by tracking the entire S&P 500, with technology making up 36% of its holdings, and top positions including Nvidia, Apple, and Microsoft [7]. Group 4: Investment Implications - SOXL is suited for investors looking to capitalize on the semiconductor industry's growth, particularly due to the rise of artificial intelligence, but this focus increases risk [9]. - SPXL offers a more diversified investment approach, which may provide a buffer against sector-specific downturns, making it a relatively safer option compared to SOXL [10].