SPXL vs. SSO: Which Leveraged S&P 500 ETF Is Right for You?

Core Viewpoint - The ProShares - Ultra S&P 500 ETF (SSO) and the Direxion Daily S&P 500 Bull 3X ETF (SPXL) are designed for investors seeking leveraged exposure to the S&P 500, with SSO targeting 2x daily returns and SPXL targeting 3x daily returns [1][6] Cost & Size - SSO has an expense ratio of 0.87% and AUM of $6.8 billion, while SPXL has a slightly lower expense ratio of 0.84% and AUM of $5.6 billion [2] - The 1-year return for SSO is 33.75%, compared to SPXL's 45.08%, indicating SPXL's superior performance over the past year [2] Performance & Risk Comparison - SPXL has a higher maximum drawdown of -63.80% over 5 years compared to SSO's -46.73%, indicating greater risk [4] - The growth of $1,000 over 5 years is $2,367 for SPXL and $2,140 for SSO, showing SPXL's higher potential returns [4] Portfolio Composition - SPXL is designed for aggressive traders and includes top holdings such as Nvidia, Apple, and Microsoft, aligning with the S&P 500 [5] - Both funds reset their leverage daily, which can lead to performance divergence from the index over longer periods [5][6] Investment Implications - Both SSO and SPXL provide leveraged exposure to the S&P 500, enhancing earning potential compared to standard ETFs, but they differ in risk and reward profiles [7] - SPXL offers more potential for lucrative earnings but carries significantly higher risk due to its 3x leverage [7]