Was SOXL’s long-term return three times SOXX’s?
Over these ten years, SOXL’s cumulative USD return was 3.10x SOXX’s. The last five years tell a different story. A daily 3x target does not promise a 3x return over years.
SOXX invests across semiconductor companies. SOXL aims to multiply a semiconductor index’s daily percentage move by three. If the index rises 1% in a day, it targets roughly a 3% gain; if it falls 1%, it targets roughly a 3% loss. Costs and market-price differences mean an exact 3x result is not guaranteed.
We compare both the ending value of equal investments and the declines an investor would have faced along the way.
- Same dates
- ~
- Investment
- KRW 100 million in each · Lump sum · No contributions
- Currency / distributions
- Valuation and risk in KRW, return ratios in USD · Distributions reinvested
We compare through September 8, 2026, when both price and exchange-rate data are available. KRW portfolio values include exchange-rate changes. To compare the funds’ return ratios without that effect, we use USD returns with the same dates and reinvestment assumptions.
SOXX vs SOXL at a glance
| Metric | SOXX | SOXL |
|---|---|---|
| Structure | Semiconductor equity index ETF | Stocks and derivative contracts used to amplify daily moves |
| Current benchmark | NYSE Semiconductor Index | NYSE Semiconductor Index |
| Daily return target | Follow the index | Three times the index’s daily move · Before expenses |
| Annual expense ratio | 0.33% | Gross 0.91% / net 0.75% |
| Holdings | Primarily 30 semiconductor and equipment companies, including NVIDIA, AMD and Micron | Exposure to the same 30-company index; actual fund assets include derivatives and cash |
| Adjusting holdings | Follows scheduled index changes | Adjusts daily to target 3x again the next day |
SOXL’s net expense ratio reflects an expense-limitation agreement. It excludes costs such as swap financing, so 0.75% is not its total cost.
Expense sources and historical index changes
Current expenses are from the iShares · Direxion product pages. SOXX’s June 2026 fact sheet showed 0.34%, different from the current disclosure. SOXL’s expense limitation runs through September 1, 2027, with exclusions including swap financing; 0.75% does not represent all costs.
Both currently reference the same index, but their 2021 transition dates differed: June 21 for SOXX and August 25 for SOXL. This compares two actual funds, rather than isolating a pure 3x strategy on one unchanged index. Current holdings are not imposed on the historical period.
Ten years with KRW 100 million in each
| Metric | SOXX | SOXL |
|---|---|---|
| Final value | ₩2,034,932,387 | ₩6,039,940,426 |
| Cumulative return | +1,934.93% | +5,939.94% |
| Annual growth rate (CAGR) | +35.17% | +50.70% |
| Largest decline (MDD) | −37.34% | −88.51% |
| Annualized volatility | 34.89% | 102.11% |
A larger ending value does not mean an easier holding period. The largest decline shows how much portfolio value fell along the way.
- Cumulative return: How much the investment grew or shrank over the full period, including reinvested distributions.
- CAGR: The constant annual growth rate that would connect the starting and ending values. It is not the return earned in every individual year.
- MDD: The largest drop from a previous portfolio high. A fall from KRW 200 million to KRW 100 million is a 50% drawdown, regardless of the original investment.
- Annualized volatility: A measure of how widely daily returns fluctuated, expressed on an annual scale. A higher number means rougher swings, not a prediction of that year’s loss.
Select a date to see the KRW portfolio value and cumulative return.
The vertical axis shows portfolio value in KRW. Use Left and Right Arrow or Home and End to explore returns by date. Use the wheel to zoom and drag to move through time.
| Date | Fund | Cumulative return |
|---|---|---|
| SOXL | 0.00% | |
| SOXX | 0.00% | |
| SOXL | +5939.94% | |
| SOXX | +1934.93% |
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Why SOXL is not ‘SOXX’s long-term return × 3’
The key is that each day’s 3x target starts from the portfolio’s new value. This is a daily reset. Today’s gain or loss changes the amount on which tomorrow’s return is earned.
Repeated gains: the next gain applies to a larger amount
Suppose the index rises 10% on each of two days. Here is what happens to a hypothetical KRW 1 million investment.
| Time | Index | Daily 3x strategy |
|---|---|---|
| Start | KRW 1 million | KRW 1 million |
| After day one | KRW 1.1 million | KRW 1.3 million |
| After day two | KRW 1.21 million | KRW 1.69 million |
The index gains 21%; daily 3x gains 69%, exceeding the simple comparison of 21% × 3 = 63%. The second day’s 30% gain applies to the larger KRW 1.3 million balance.
A decline and rebound: a loss can remain
Now suppose the index falls 10%, then rises about 11.11% to return to its starting level.
| Time | Index | Daily 3x strategy |
|---|---|---|
| Start | KRW 1 million | KRW 1 million |
| After day one | KRW 900,000 | KRW 700,000 |
| After day two | KRW 1 million | About KRW 933,333 |
Daily 3x loses 30%, then rebounds about 33.33%. The rebound starts from only KRW 700,000, leaving a loss of about 6.67%. This helps explain volatility drag: the index can return to its starting point while a leveraged investment remains below it.
These are hypothetical, cost-free examples, not actual SOXX or SOXL returns. Real funds also incur expenses and differences between target and achieved returns.
Read more: leverage and volatility drag · Direxion’s explanation.
How much realized leverage did a daily 3x ETF deliver?
The ‘realized leverage ratio’ asks how many times SOXX’s return SOXL earned over the same period.
Realized ratio = SOXL cumulative return ÷ SOXX cumulative return
For example, if SOXX gains 100% and SOXL gains 250%, the ratio is 250 ÷ 100 = 2.5x. This illustration compares returns; it does not mean the final investment values differ by 2.5x.
| Metric | SOXX | SOXL |
|---|---|---|
| Cumulative return | 1511.72% | 4683.79% |
Realized ratio: 3.10x · Gap versus simple 3x: 148.63 pp.
SOXL exceeded three times SOXX’s cumulative gain in this period. Its larger accumulated position also increased exposure to subsequent declines; the excess gain does not indicate lower risk.
The ‘gap versus 3x’ subtracts three times SOXX’s return from SOXL’s actual return. When SOXX gains, a positive gap means SOXL earned more than that simple comparison; a negative gap means less. Percentage points (pp) measure the difference between two returns: 250% minus 300% is −50pp.
This 3x reference is a comparison calculation, not the return of an investable fund or a separate measurement of volatility drag.
When did SOXL exceed 3x, and when did it fall short?
During repeated gains, the next return applies to a growing balance. After a sharp decline, recovery starts from a smaller amount. The following examples are calculated from actual USD price and distribution data.
2017 advance
~
| Metric | SOXX | SOXL |
|---|---|---|
| Cumulative return | 39.77% | 141.32% |
Realized ratio: 3.55x · Gap versus simple 3x: 22.00 pp.
SOXL’s cumulative return exceeded three times SOXX’s in this rising window. It is an example to consider alongside the effect of earning further returns on a growing balance.
2022 decline
~
| Metric | SOXX | SOXL |
|---|---|---|
| Cumulative return | -36.35% | -86.47% |
Realized ratio: — · Gap versus simple 3x: 22.57 pp.
We show — for the gain ratio when SOXX declines. Dividing losses could produce a positive number that looks like good performance; compare the loss percentages directly instead. A positive gap versus 3x does not mean the investment made money.
2023 rebound
~
| Metric | SOXX | SOXL |
|---|---|---|
| Cumulative return | 68.76% | 237.83% |
Realized ratio: 3.46x · Gap versus simple 3x: 31.55 pp.
SOXL’s cumulative return exceeded three times SOXX’s in this rising window. It is an example to consider alongside the effect of earning further returns on a growing balance.
Late 2021 to late 2023 round trip
~
| Metric | SOXX | SOXL |
|---|---|---|
| Cumulative return | -0.63% | -64.27% |
Realized ratio: — · Gap versus simple 3x: -62.39 pp.
We show — for the gain ratio when SOXX declines. Dividing losses could produce a positive number that looks like good performance; compare the loss percentages directly instead. A positive gap versus 3x does not mean the investment made money.
In the late-2021 to late-2023 round trip, SOXX returned -0.63% and SOXL -64.27%. SOXX returned close to its starting level while SOXL still lost more than half its value. These dates are selected retrospectively to illustrate a round trip, not to represent every such period.
SOXX returning to its starting value does not imply the same recovery for SOXL. Costs and index changes also affect these results. Long-term SOXL holders need to consider both the final gain and the size of the swings along the way.
Drawdowns and recovery in major selloffs
Earning the final return required holding through earlier declines. A ‘recovery date’ means regaining the previous portfolio high, rather than simply recovering the initial investment. Recovery time counts calendar days from that high to its recovery.
| Metric | SOXX | SOXL |
|---|---|---|
| High before largest decline | 2024-07-10 | 2021-12-27 |
| Low after largest decline | 2025-04-08 | 2022-10-14 |
| Recovery date | 2025-09-18 | 2024-06-17 |
| Peak-to-recovery calendar days | 435 | 903 |
COVID-19 selloff
~
| Metric | SOXX | SOXL |
|---|---|---|
| Largest decline in window | -31.89% | -79.44% |
| Peak | 2020-02-19 | 2020-02-19 |
| Trough | 2020-03-16 | 2020-03-20 |
| Recovery date | 2020-06-03 | 2020-11-06 |
| Peak-to-recovery calendar days | 105 | 261 |
2022 semiconductor / growth selloff
~
| Metric | SOXX | SOXL |
|---|---|---|
| Largest decline in window | -34.70% | -88.42% |
| Peak | 2022-01-03 | 2022-01-03 |
| Trough | 2022-10-14 | 2022-10-14 |
| Recovery date | 2023-06-14 | 2024-06-17 |
| Peak-to-recovery calendar days | 527 | 896 |
An 80% decline requires a 400% gain to recover. If KRW 1 million falls to KRW 200,000, it must grow fivefold to return to KRW 1 million. This is why deep declines are difficult to recover from.
The two funds may reach their highs and lows on different dates. Recovery is checked through September 8, 2026; ‘unrecovered’ means the previous high had not been regained by that date.
A ten-year ratio of 3.10x can hide starting-date risk: the trailing five-year ratio below is just 0.71x. Investors who started in 2021 experienced a different relative result, despite sharing the same end date.
Realized ratios over 1, 3, 5 and 10 years
| Period | SOXX / SOXL returns | Ratio / gap versus 3x |
|---|---|---|
| 1 year
2025-09-08 ~ 2026-09-08 |
SOXX
113.34% SOXL 355.34% |
3.14x
15.32 pp |
| 3 years
2023-09-08 ~ 2026-09-08 |
SOXX
227.40% SOXL 483.79% |
2.13x
-198.39 pp |
| 5 years
2021-09-08 ~ 2026-09-08 |
SOXX
256.17% SOXL 182.56% |
0.71x
-585.97 pp |
| 10 years
2016-09-08 ~ 2026-09-08 |
SOXX
1511.72% SOXL 4683.79% |
3.10x
148.63 pp |
| 15 years
2011-09-08 ~ 2026-09-08 |
SOXX
3796.75% SOXL 30610.13% |
8.06x
19219.86 pp |
| Maximum history
2010-03-11 ~ 2026-09-08 |
SOXX
3819.68% SOXL 20379.25% |
5.34x
8920.19 pp |
Every investment ends on the same date; only the start changes, such as one or three years earlier. This does not examine every possible start date. We show — when SOXX’s return is negative or close to zero.
Risks of holding SOXL for years
SOXL adds a daily 3x target to semiconductor-sector swings. Before holding it for years, consider whether you can accept these risks.
- Deep declines: Regaining a previous portfolio value can take a long time, even after markets rebound.
- Needing the money: Living expenses or other commitments may force you to sell during a decline rather than wait for recovery.
- Costs and contract risks: Derivative financing costs, the risk of a contract counterparty failing, and differences between target and achieved returns also matter.
A longer holding period does not make these risks disappear.
I believe understanding an unleveraged fund’s holdings and declines is a sensible starting point for semiconductor investing. Anyone considering SOXL should first define tolerable losses, position size, holding horizon and monitoring plans. For unleveraged alternatives, see SOXX vs SMH.
Calculation details and assumptions
Prices and distributions: We use split-adjusted closing prices and fractional shares. Without precise payment-date coverage, distributions are recognized on ex-dates and reinvested on the next trading day.
Costs and exchange rates: Fund costs embedded in prices are not deducted again. Taxes, trading fees and the difference between FX buying and selling rates are excluded. FX holidays use eligible prior observations.
USD comparison: We separately invest USD 10,000. In this fractional-share model without trading costs, investment size does not change percentage returns.
Metrics: Annualized volatility is sample standard deviation of daily returns × √252. CAGR is (final value/initial investment)^(365.2425/holding days) − 1. Returns, ratios and percentage-point gaps are displayed to two decimals with HALF_UP rounding; ratios and gaps use values before display rounding.
Ratio interpretation: Ratios are suppressed when SOXX’s return is below 0.01%. A SOXX gain combined with a SOXL loss can produce a negative ratio. The ratio does not measure daily exposure.
Gap versus 3x: Costs, derivative financing, index changes and differences between target and achieved performance all contribute. Three times a negative SOXX return can fall below −100%, so a positive gap during such a decline is not evidence of good performance.
FAQ
Does a high ten-year SOXL return make future long-term holding attractive?
This window cannot establish the next decade’s outcome. Starting valuations, return paths and financing costs change, and the historical final gain includes substantial interim losses.
Is each SOXL day exactly three times SOXX?
The target is 300% of the benchmark’s daily performance, not SOXX’s market-price return. Costs, tracking and market-price differences prevent an exact guaranteed ratio.
Does a 3x realized ratio mean three times the final money?
No. It is a return ratio. With +100% and +300% returns, the ratio is 3x, while final wealth is 2x and 4x the original capital, a 2x wealth ratio.
Can buying more after a decline eliminate volatility drag?
New purchases change cost basis and invested capital, not the fund’s daily reset. They can increase loss exposure; this article uses lump-sum holdings without additional contributions.
Compare your own investment horizon
Change dates, distributions and currency to examine KRW and USD results separately.
Open investment backtestA pretax historical simulation, not a guarantee of future returns or a loss limit. Methodology