SOXL vs SPY

SOXL vs SPY

Which is better, SOXL or SPY?

Multi Alternative against Large Cap Blend.

SPY has a lower expense ratio. SOXL led over 1Y, 3Y, 5Y and the full window.

Lower Fees: SPYHigher Returns: SOXL

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricSOXLSPY
Expense Ratio0.75%0.09%Best
AUM$18.1B$804.7B
Dividend Yield0.01%0.98%
Holdings44505
YTD Return+157.87%Best+12.47%
1Y Return+317.62%Best+17.51%
3Y Return (annualized)+80.48%Best+21.18%
5Y Return (annualized)+21.07%Best+12.88%
Volatility (annualized)87.5%14.4%Best
Max Drawdown-90.5%-34.1%Best
$10,000 over 5 years$26,013Best$18,327
Fund FamilyDirexion Shares ETF TrustState Street Investment Management
CategoryAlternativeEquity
StyleMulti AlternativeLarge Cap Blend
InceptionMar 11, 2010Jan 22, 1993

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Mar 11, 2010 to Sep 11, 2026 (16.5 years).

SOXL vs SPY growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

SOXL vs SPY Performance

Direxion Daily Semiconductor Bull 3X ETF (SOXL) is an ETF from Direxion Shares ETF Trust and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year SOXL returned +317.62% while SPY returned +17.51%. Year to date, SOXL is up 157.87% versus a gain of 12.47% for SPY.

Over three years, SOXL compounded at +80.48% per year against +21.18% for SPY; over five years the annualized figures are +21.07% and +12.88% respectively. Across the full 17-year window we track, SOXL has the edge at +37.36% annualized vs +12.64%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SOXL has been the more volatile fund, with annualized monthly volatility of 87.5% compared with 14.4% 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 -34.1% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.

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 0.98% for SPY.

Holdings Overlap

SPY already in SOXL17.4%

At least 17.4% of SPY's money is in holdings SOXL also owns.

Only one direction is shown: for SOXL, our book for it lists positions totalling 117.9% of the fund, which is what a leveraged book looks like and is not a denominator we can divide by.

SPY and SOXL share little of their money.

18 positions in common, counted across the 34 positions we hold weights for in SOXL and 504 in SPY, against full books of 44 and 505.

Top Shared Holdings

StockWeight in SOXLWeight in SPYDifference
NVDANvidia Corp.5.87%7.71%1.84%
AVGOBroadcom Inc5.47%2.97%2.50%
AMDAdvanced Micro Devices Inc.5.88%1.27%4.61%
MUMicron Technology, Inc.5.38%1.51%3.87%
INTCIntel Corp.3.72%0.72%3.00%
AMATApplied Materials, Inc.3.55%0.65%2.90%
LRCXLam Research Corp2.92%0.60%2.32%
MRVLMarvell Technology Group Ltd3.12%0.29%2.83%
KLACKla Corp.2.97%0.38%2.59%
TXNTexas Instruments, Inc2.71%0.39%2.32%

You are not choosing between two funds in isolation.

Whichever of SOXL and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

SOXLSPY

Free for up to 10 holdings. No account needed.

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, by $66 a year on a $10,000 investment.

Which performed better, SOXL or SPY?

Over the past year SOXL returned +317.62% vs +17.51% for SPY, so SOXL leads on 1-year performance. Over the longest common window we track (17 years), SOXL annualized +37.36% vs +12.64% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, SOXL or SPY?

SOXL has been the more volatile fund at 87.5% annualized versus 14.4% for SPY. Worst drawdown: SOXL -90.5% vs SPY -34.1%.

Should I hold both SOXL and SPY?

SOXL and SPY have a monthly-return correlation of 0.75, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between SOXL and SPY?

At least 17.4% of SPY's money is in holdings SOXL also owns. Our book for SOXL is partial, so the real figure is this or higher. They hold 18 positions in common, counted across the 34 positions we hold weights for in SOXL and 504 in SPY.

Which pays a higher dividend, SOXL or SPY?

SOXL yields 0.01% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.

Is SPY better than SOXL?

SPY has a lower expense ratio. SOXL led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.