Direxion Daily Semiconductor Bull 3X ETF

Frequently Asked Questions About SOXL

What does SOXL invest in?

The Direxion Daily Semiconductor Bull and Bear 3X Exchange-Traded Funds (ETFs) are engineered to deliver daily investment outcomes that are triple (300%) the movement of the NYSE Semiconductor Index, or triple the inverse (opposite) of its performance, prior to the deduction of fees and expenses. It is important to note that these funds offer no guarantee of successfully reaching their stated investment targets.

What is the expense ratio of SOXL?

Direxion Daily Semiconductor Bull 3X ETF (SOXL) charges an expense ratio of 0.91%. This is the annual fee deducted from fund assets to cover management and operations.

Is SOXL a good long-term hold?

SOXL is a leveraged fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple, typically with negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.

How does SOXL's daily reset work?

SOXL rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level, so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.

How big is SOXL?

Direxion Daily Semiconductor Bull 3X ETF (SOXL) manages $20.06B in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is SOXL actively managed or an index fund?

SOXL's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.