FQAL vs SOXL
Fidelity Quality Factor ETF vs Direxion Daily Semiconductor Bull 3X ETF
Quick Verdict
FQAL has a lower expense ratio. SOXL delivered stronger 1-year returns. FQAL offers more diversification with 130 holdings.
Side-by-Side Comparison
| Metric | FQAL | SOXL | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.75% | |
| AUM | $1.4B | $24.3B | |
| Dividend Yield | 1.15% | 0.01% | |
| Holdings | 130 | 43 | |
| YTD Return | +12.56% | +155.29% | |
| 1Y Return | +19.37% | +375.74% | |
| 3Y Return (annualized) | +20.54% | +78.72% | |
| 5Y Return (annualized) | +11.62% | +23.06% | |
| Volatility (annualized) | 15.0% | 87.7% | |
| Max Drawdown | -34.1% | -90.5% | |
| Fund Family | Fidelity Investments (US) | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Sep 12, 2016 | Mar 11, 2010 |
FQAL vs SOXL Performance
Fidelity Quality Factor ETF (FQAL) is a ETF from Fidelity Investments (US) and Direxion Daily Semiconductor Bull 3X ETF (SOXL) is a ETF from Direxion Shares ETF Trust. Over the past year FQAL returned +19.37% while SOXL returned +375.74%. Year to date, FQAL is up 12.56% versus a gain of 155.29% for SOXL.
Over three years, FQAL compounded at +20.54% per year against +78.72% for SOXL; over five years the annualized figures are +11.62% and +23.06% respectively. Across the full 10-year window we track, SOXL has the edge at +37.43% annualized vs +13.76%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SOXL has been the more volatile fund, with annualized monthly volatility of 87.7% compared with 15.0% for FQAL. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -34.1% for FQAL and -90.5% for SOXL. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FQAL charges 0.15% per year while SOXL charges 0.75%. On a $10,000 position that is $15 vs $75 annually, a gap of $60 per year that compounds over a long holding period. On income, FQAL currently yields 1.15% against 0.01% for SOXL.
Holdings Overlap
FQAL and SOXL share 6 holdings out of 154 unique holdings combined, representing a 15.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FQAL or SOXL?
FQAL has an expense ratio of 0.15% while SOXL charges 0.75%. FQAL is the cheaper option. On a $10,000 investment, that is $60 per year of difference.
Which performed better, FQAL or SOXL?
Over the past year FQAL returned +19.37% vs +375.74% for SOXL, so SOXL leads on 1-year performance. Over the longest common window we track (10 years), FQAL annualized +13.76% vs +37.43% for SOXL. Past performance does not guarantee future results.
Which is riskier, FQAL or SOXL?
SOXL has been the more volatile fund at 87.7% annualized versus 15.0% for FQAL. Worst drawdown: FQAL -34.1% vs SOXL -90.5%.
Should I hold both FQAL and SOXL?
FQAL and SOXL have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FQAL and SOXL?
FQAL and SOXL share 6 common holdings with a 15.2% weight overlap. Combined, they hold 154 unique securities.
Which pays a higher dividend, FQAL or SOXL?
FQAL yields 1.15% while SOXL yields 0.01%, so FQAL currently pays the higher dividend yield.
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