SOXL vs SPY
Direxion Daily Semiconductor Bull 3X ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SOXL delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SOXL | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.09% | |
| AUM | $24.3B | $821.1B | |
| Dividend Yield | 0.01% | 1.01% | |
| Holdings | 43 | 505 | |
| YTD Return | +155.29% | +12.68% | |
| 1Y Return | +375.74% | +21.82% | |
| 3Y Return (annualized) | +78.72% | +21.98% | |
| 5Y Return (annualized) | +23.06% | +12.89% | |
| Volatility (annualized) | 87.7% | 15.3% | |
| Max Drawdown | -90.5% | -56.5% | |
| Fund Family | Direxion Shares ETF Trust | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Mar 11, 2010 | Jan 22, 1993 |
SOXL vs SPY Performance
Direxion Daily Semiconductor Bull 3X ETF (SOXL) is a ETF from Direxion Shares ETF Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SOXL returned +375.74% while SPY returned +21.82%. Year to date, SOXL is up 155.29% versus a gain of 12.68% for SPY.
Over three years, SOXL compounded at +78.72% per year against +21.98% for SPY; over five years the annualized figures are +23.06% and +12.89% respectively. Across the full 16-year window we track, SOXL has the edge at +37.43% annualized vs +8.81%. 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 15.3% for SPY. 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 -90.5% for SOXL and -56.5% for SPY. 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SOXL charges 0.75% per year while SPY charges 0.09%. On a $10,000 position that is $75 vs $9 annually, a gap of $66 per year that compounds over a long holding period. On income, SOXL currently yields 0.01% against 1.01% for SPY.
Holdings Overlap
SOXL and SPY share 18 holdings out of 521 unique holdings combined, representing a 14.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SOXL or SPY?
SOXL has an expense ratio of 0.75% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $66 per year of difference.
Which performed better, SOXL or SPY?
Over the past year SOXL returned +375.74% vs +21.82% for SPY, so SOXL leads on 1-year performance. Over the longest common window we track (16 years), SOXL annualized +37.43% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, SOXL or SPY?
SOXL has been the more volatile fund at 87.7% annualized versus 15.3% for SPY. Worst drawdown: SOXL -90.5% vs SPY -56.5%.
Should I hold both SOXL and SPY?
SOXL and SPY have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SOXL and SPY?
SOXL and SPY share 18 common holdings with a 14.6% weight overlap. Combined, they hold 521 unique securities.
Which pays a higher dividend, SOXL or SPY?
SOXL yields 0.01% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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