Better AI Tech ETF: ProShares' QLD vs. Direxion's SOXL

Core Insights - The Direxion Daily Semiconductor Bull 3X Shares (SOXL) and ProShares Ultra QQQ (QLD) are leveraged ETFs targeting the technology sector, with SOXL focusing on semiconductors and offering triple daily leverage, while QLD provides double daily leverage across a broader NASDAQ-100 mix [1][2][10] Cost and Size Comparison - SOXL has an expense ratio of 0.75% and QLD has 0.95%, with both funds charging close to one percent annually [4][5] - As of January 30, 2026, SOXL's one-year return is 127.6% compared to QLD's 27.6%, and SOXL has a higher asset under management (AUM) of $12.68 billion versus QLD's $10.7 billion [4] Performance and Risk Analysis - SOXL has a maximum drawdown of 90.51% over five years, while QLD's is 63.78%, indicating higher volatility for SOXL [6] - Over five years, an initial investment of $1,000 would grow to $1,654 in SOXL and $2,370 in QLD, showing that despite higher recent returns, SOXL's long-term performance lags behind QLD [6] Portfolio Composition - QLD consists of 121 holdings with a strong technology tilt (53%), and significant allocations to communication services (17%) and consumer cyclical stocks (13%), with major positions in Nvidia, Apple, and Microsoft [7] - SOXL is concentrated solely on semiconductors, tracking a 100% technology basket, with top holdings including Micron Technology, Advanced Micro Devices, and Nvidia [8] Investment Implications - SOXL is suited for investors specifically interested in the semiconductor industry, which is crucial for AI development, but it carries higher volatility and risk [12][14] - QLD offers a more diversified exposure to AI stocks, providing some protection against declines in specific sectors, resulting in less volatility compared to SOXL [13][14]