SOXL vs. QLD: Which Leveraged ETF Delivers Bigger Gains for Investors?

Core Insights - The ProShares Ultra QQQ ETF (QLD) and the Direxion Daily Semiconductor Bull 3X Shares (SOXL) provide leveraged exposure to technology stocks but have different strategies and risk profiles [1][2] Group 1: Cost and Size - QLD has an expense ratio of 0.95% and assets under management (AUM) of $10.6 billion, while SOXL has a lower expense ratio of 0.75% and AUM of $13.6 billion [3] - The one-year return for QLD is 24.95%, compared to SOXL's 44.62%, indicating SOXL's higher recent performance [3] - SOXL offers a higher dividend yield of 0.53% versus QLD's 0.18% [3] Group 2: Performance and Risk Comparison - Over five years, QLD has a maximum drawdown of -63.68%, while SOXL has a significantly higher drawdown of -90.46% [4] - An investment of $1,000 in QLD would grow to $2,591 over five years, whereas the same investment in SOXL would only grow to $1,491 [4] Group 3: Portfolio Composition - SOXL focuses exclusively on the semiconductor industry, holding around 40 stocks, with major positions in Broadcom, Nvidia, and Advanced Micro Devices [5] - QLD provides broader exposure, with 55% of its assets in technology stocks, 15% in communication services, and 13% in consumer cyclicals, featuring top holdings like Nvidia, Apple, and Microsoft [6] Group 4: Investment Implications - SOXL is characterized by higher potential returns due to its 3x leverage on the semiconductor sector, which is known for its volatility [7][9] - QLD, with its 2x leverage and broader focus, presents a less risky option, appealing to investors seeking a more diversified approach [8][10]