Overview
- The Direxion Daily Semiconductor Bull 3X ETF rose about 18%, roughly triple the iShares Semiconductor ETF’s near 6% gain as designed.
- Gains in Nvidia, AMD, Micron, and Broadcom powered the sector, and these large holdings carry the most weight in the index SOXL seeks to track each day.
- Traders pointed to an Iranian ceasefire that reduced Persian Gulf risk, including worries about helium shipments from Qatar through the Strait of Hormuz.
- SOXL targets three times the index’s daily move, which can stray over time due to daily resets, and its 0.75% fee is higher than SOXX’s 0.34%.
- Over the past five years, the leveraged fund lagged both the iShares Semiconductor ETF and the S&P 500, highlighting long-term performance risks despite big single-day jumps.