Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • Hampshire Premium Bonds winners revealed for April 2026
    • 3 Dividend ETFs Quietly Outperforming the Market Right Now
    • How the Largest Stock Funds Did in Q1 2026
    • 3-Year SIP reality check: Is your flexi-cap fund failing you? – Money Insights News
    • NRI Demat for Mutual Funds – Is It Mandatory?
    • Meet the 2 Vanguard ETFs That Are Issuing 6-for-1 Stock Splits in April. Here’s Why Both Are Buys Now.
    • Comparing ETF vs mutual funds
    • Bonds’ Oil-Driven Selloff Stalls as Growth Concerns Return
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»ETFs»SOXL vs. SSO: What Type of Investor Should Consider These Leveraged ETFs?
    ETFs

    SOXL vs. SSO: What Type of Investor Should Consider These Leveraged ETFs?

    March 13, 2026


    ProShares – Ultra S&P500 (SSO +0.83%) and Direxion Daily Semiconductor Bull 3X ETF (SOXL +4.33%) both use daily leverage resets, but SSO delivers 2x exposure to the S&P 500, while SOXL offers 3x exposure to a concentrated semiconductor portfolio, resulting in sharply different risk profiles and recent returns.

    Both funds are designed for traders seeking amplified daily moves, but their underlying indexes and leverage levels set them apart. SSO magnifies the entire S&P 500, giving broad market exposure, while SOXL zeroes in on the semiconductor sector with even more aggressive leverage. This comparison highlights the key differences in cost, risk, performance, and portfolio makeup to help investors weigh which approach could fit their strategy.

    Snapshot (Cost & Size)

    Metric SSO SOXL
    Issuer ProShares Direxion
    Expense ratio 0.87% 0.75%
    1-yr return (as of 2026-03-11) 37.3% 222.2%
    Dividend yield 0.6% 0.3%
    Beta 2.01 4.52
    AUM $6.5 billion $12.6 billion

    Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.

    SOXL charges a slightly higher expense ratio than SSO, but both are at the higher end for ETFs. SSO’s yield is notably higher, which may appeal to those seeking a modest income stream from dividends.

    Performance & Risk Comparison

    Metric SSO SOXL
    Max drawdown (5 y) -46.77% -90.51%
    Growth of $1,000 over 5 years $2,234 $1,678

    SOXL’s triple leverage and sector focus have resulted in extreme volatility, with a five-year drawdown approaching (91%) compared to SSO’s (47%). Despite SOXL’s recent surge, SSO has delivered higher cumulative growth over the past five years, highlighting how leverage can amplify both gains and losses depending on market cycles.

    What’s Inside

    SOXL offers pure-play exposure to the semiconductor industry, tracking a basket of 44 technology stocks. Its top holdings include Micron Technology Inc (MU +4.56%), Nvidia Corp (NVDA 0.32%), and Applied Materials Inc (AMAT +2.14%), each making up less than 2% of the portfolio, and the fund has been trading for 16 years. Because SOXL uses daily 3x leverage and resets exposure each day, it is built for short-term trading, not long-term compounding, and is highly sensitive to sector swings.

    In contrast, SSO amplifies the S&P 500 using 2x leverage, resulting in exposure to over 500 large-cap U.S. stocks across technology, financials, and communication services. Its largest positions are Nvidia Corp and Apple Inc (AAPL 0.51%), with a more diversified sector mix. Both funds employ daily leverage resets, which can cause returns to diverge from the index over time, especially in volatile conditions.

    What This Means for Investors

    Both ProShares – Ultra S&P500 (SSO) and Direxion Daily Semiconductor Bull 3X ETF (SOXL) deliver heightened exposure to the S&P 500 and semiconductor sector, respectively. Here’s what investors need to know about these two ETFs.

    For starters, we must talk about leverage. Both of these funds are highly-leveraged. As a result, they are both highly volatile, and, consequently, not appropriate for every portfolio. What’s more, these ETFs are also designed to provide daily exposure. That means that, over time, the returns of these funds can drift from their respective parent index.

    That said, these funds can deliver incredibly amplified rates of return. SOXL, for example, has advanced 72% over the last six months alone.

    However, those immense returns do come with risk and cost. As for risk, each of these funds has experienced significant drawdowns over the last five years. SSO’s max drawdown during that stretch was 45%; SOXL’s largest drawdown was 90%. As for costs, both funds have average to slightly above-average fees. SSO has an expense ratio of 0.87%, and SOXL’s expense ratio is 0.75%.

    In summary, these two ETFs are not for every investor. Indeed, they’re better suited for those with a very short time horizon and a taste for high-risks and potentially high-rewards.

    For more guidance on ETF investing, check out the full guide at this link.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    3 Dividend ETFs Quietly Outperforming the Market Right Now

    April 2, 2026

    Meet the 2 Vanguard ETFs That Are Issuing 6-for-1 Stock Splits in April. Here’s Why Both Are Buys Now.

    April 2, 2026

    7 Best Thematic ETFs to Buy in 2026

    April 2, 2026
    Leave A Reply Cancel Reply

    Top Posts

    The Shifting Landscape of Art Investment and the Rise of Accessibility: The London Art Exchange

    September 11, 2023

    Charlie Cobham: The Art Broker Extraordinaire Maximizing Returns for High Net Worth Clients

    February 12, 2024

    Hampshire Premium Bonds winners revealed for April 2026

    April 2, 2026

    The Unyielding Resilience of the Art Market: A Historical and Contemporary Perspective

    November 19, 2023
    Don't Miss
    Bonds

    Hampshire Premium Bonds winners revealed for April 2026

    April 2, 2026

    People from across the county have come out as winners in the draw for April 2026,…

    3 Dividend ETFs Quietly Outperforming the Market Right Now

    April 2, 2026

    How the Largest Stock Funds Did in Q1 2026

    April 2, 2026

    3-Year SIP reality check: Is your flexi-cap fund failing you? – Money Insights News

    April 2, 2026
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    Luján Joins Leaders In New Mexico To Highlight Investments In Manufacturing, Technology, and Good-Paying Jobs For New Mexicans

    July 17, 2024

    JD.com’s property unit joins 2 firms in a US$1 billion Singapore Reit, sources say

    August 27, 2025

    Friday Saw Fresh Inflows into Spot BTC ETFs

    October 13, 2024
    Our Picks

    Hampshire Premium Bonds winners revealed for April 2026

    April 2, 2026

    3 Dividend ETFs Quietly Outperforming the Market Right Now

    April 2, 2026

    How the Largest Stock Funds Did in Q1 2026

    April 2, 2026
    Most Popular

    🔥Juve target Chukwuemeka, Inter raise funds, Elmas bid in play 🤑

    August 20, 2025

    💵 Libra responds after Flamengo takes legal action and ‘freezes’ funds

    September 26, 2025

    ₹10,000 monthly SIP in this mutual fund has grown to ₹1.52 crore in 22 years

    September 17, 2025
    © 2026 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.