SOXL vs VOO
Direxion Daily Semiconductor Bull 3X ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. SOXL delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | SOXL | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.03% | |
| AUM | $24.3B | $997.4B | |
| Dividend Yield | 0.01% | 1.08% | |
| Holdings | 43 | 509 | |
| YTD Return | +155.29% | +12.68% | |
| 1Y Return | +375.74% | +21.87% | |
| 3Y Return (annualized) | +78.72% | +22.06% | |
| 5Y Return (annualized) | +23.06% | +12.95% | |
| Volatility (annualized) | 87.7% | 14.1% | |
| Max Drawdown | -90.5% | -34.3% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Mar 11, 2010 | Sep 7, 2010 |
SOXL vs VOO Performance
Direxion Daily Semiconductor Bull 3X ETF (SOXL) is a ETF from Direxion Shares ETF Trust and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year SOXL returned +375.74% while VOO returned +21.87%. Year to date, SOXL is up 155.29% versus a gain of 12.68% for VOO.
Over three years, SOXL compounded at +78.72% per year against +22.06% for VOO; over five years the annualized figures are +23.06% and +12.95% respectively. Across the full 16-year window we track, SOXL has the edge at +37.43% annualized vs +13.47%. 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 14.1% for VOO. 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 -34.3% for VOO. 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SOXL charges 0.75% per year while VOO charges 0.03%. On a $10,000 position that is $75 vs $3 annually, a gap of $72 per year that compounds over a long holding period. On income, SOXL currently yields 0.01% against 1.08% for VOO.
Holdings Overlap
SOXL and VOO share 18 holdings out of 522 unique holdings combined, representing a 16.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SOXL or VOO?
SOXL has an expense ratio of 0.75% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $72 per year of difference.
Which performed better, SOXL or VOO?
Over the past year SOXL returned +375.74% vs +21.87% for VOO, so SOXL leads on 1-year performance. Over the longest common window we track (16 years), SOXL annualized +37.43% vs +13.47% for VOO. Past performance does not guarantee future results.
Which is riskier, SOXL or VOO?
SOXL has been the more volatile fund at 87.7% annualized versus 14.1% for VOO. Worst drawdown: SOXL -90.5% vs VOO -34.3%.
Should I hold both SOXL and VOO?
SOXL and VOO have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SOXL and VOO?
SOXL and VOO share 18 common holdings with a 16.4% weight overlap. Combined, they hold 522 unique securities.
Which pays a higher dividend, SOXL or VOO?
SOXL yields 0.01% while VOO yields 1.08%, so VOO currently pays the higher dividend yield.
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