MFEM vs SOXL
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF vs Direxion Daily Semiconductor Bull 3X ETF
Quick Verdict
MFEM has a lower expense ratio. SOXL delivered stronger 1-year returns. MFEM offers more diversification with 701 holdings.
Side-by-Side Comparison
| Metric | MFEM | SOXL | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.75% | |
| AUM | $156M | $24.3B | |
| Dividend Yield | 2.39% | 0.01% | |
| Holdings | 701 | 43 | |
| YTD Return | +20.85% | +135.31% | |
| 1Y Return | +31.34% | +307.18% | |
| 3Y Return (annualized) | +19.82% | +75.84% | |
| 5Y Return (annualized) | +8.54% | +21.02% | |
| Volatility (annualized) | 17.6% | 87.7% | |
| Max Drawdown | -45.3% | -90.5% | |
| Fund Family | PIMCO (US) | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Aug 31, 2017 | Mar 11, 2010 |
MFEM vs SOXL Performance
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is a ETF from PIMCO (US) and Direxion Daily Semiconductor Bull 3X ETF (SOXL) is a ETF from Direxion Shares ETF Trust. Over the past year MFEM returned +31.34% while SOXL returned +307.18%. Year to date, MFEM is up 20.85% versus a gain of 135.31% for SOXL.
Over three years, MFEM compounded at +19.82% per year against +75.84% for SOXL; over five years the annualized figures are +8.54% and +21.02% respectively. Across the full 9-year window we track, SOXL has the edge at +36.73% annualized vs +6.74%. 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 17.6% for MFEM. 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 -45.3% for MFEM 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
MFEM charges 0.49% per year while SOXL charges 0.75%. On a $10,000 position that is $49 vs $75 annually, a gap of $26 per year that compounds over a long holding period. On income, MFEM currently yields 2.39% against 0.01% for SOXL.
Holdings Overlap
MFEM and SOXL share 0 holdings out of 538 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MFEM or SOXL?
MFEM has an expense ratio of 0.49% while SOXL charges 0.75%. MFEM is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, MFEM or SOXL?
Over the past year MFEM returned +31.34% vs +307.18% for SOXL, so SOXL leads on 1-year performance. Over the longest common window we track (9 years), MFEM annualized +6.74% vs +36.73% for SOXL. Past performance does not guarantee future results.
Which is riskier, MFEM or SOXL?
SOXL has been the more volatile fund at 87.7% annualized versus 17.6% for MFEM. Worst drawdown: MFEM -45.3% vs SOXL -90.5%.
Should I hold both MFEM and SOXL?
MFEM 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 MFEM and SOXL?
MFEM and SOXL share 0 common holdings with a 0.0% weight overlap. Combined, they hold 538 unique securities.
Which pays a higher dividend, MFEM or SOXL?
MFEM yields 2.39% while SOXL yields 0.01%, so MFEM currently pays the higher dividend yield.
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