SOXL

The Direxion Daily Semiconductor Bull 3X Shares (SOXL) is an exchange-traded fund designed to provide approximately three times the daily performance of an index that includes companies involved in semiconductor manufacturing and related equipment. The ETF is managed by Direxion Investments and trades under the ticker SOXL on NYSE Arca.

Classified as a leveraged sector-focused equity ETF, SOXL seeks to deliver approximately 3x the daily return of its benchmark index, before fees and expenses.

To achieve this objective, the fund utilizes derivative instruments such as swaps, along with short-term assets. Exposure is reset daily, meaning performance over periods longer than one day may differ from exactly three times the cumulative return of the index.

SOXL references the NYSE Semiconductor Index, composed of companies engaged in the design, manufacture, and supply of semiconductors and related technologies. Index composition is based on sector classification and liquidity criteria. The index undergoes periodic reviews, with adjustments reflected in the ETF’s strategy.

Diversification and sector exposure

SOXL provides concentrated exposure to the global semiconductor segment, including companies involved in various stages of the production chain, such as:

• Semiconductor manufacturing.
• Chip production equipment.
• Specialized electronic components.
• Related hardware technology.

Exposure is limited to the semiconductor sector, without broad cross-sector diversification.

Structure and costs

SOXL shares trade on the secondary market during regular trading hours. Creation and redemption occur through authorized participants.

The fund charges a management fee and does not apply a performance fee. SOXL does not primarily focus on income distribution, as its objective is to provide leveraged daily exposure to its underlying index.

History and evolution of the ETF

SOXL was launched in 2010 during the expansion of leveraged ETFs targeting specific market sectors.

In recent years, the fund has reflected significant volatility in the semiconductor industry, including strong gains driven by digital transformation and chip shortages, the technology sector correction in 2022, and renewed growth supported by advancements in artificial intelligence and computing infrastructure. 

Its performance has been characterized by amplified movements relative to its benchmark index.