SOXL vs VYM

SOXL vs VYM

Which is better, SOXL or VYM?

Multi Alternative against Large Cap Value.

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

Lower Fees: VYMHigher 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

MetricSOXLVYM
Expense Ratio0.75%0.04%Best
AUM$18.1B$81.6B
Dividend Yield0.01%2.22%
Holdings44613
YTD Return+157.87%Best+13.91%
1Y Return+317.62%Best+17.57%
3Y Return (annualized)+80.48%Best+18.12%
5Y Return (annualized)+21.07%Best+12.17%
Volatility (annualized)87.5%13.2%Best
Max Drawdown-90.5%-35.7%Best
$10,000 over 5 years$26,013Best$17,758
Fund FamilyDirexion Shares ETF TrustVanguard (US)
CategoryAlternativeEquity
StyleMulti AlternativeLarge Cap Value
InceptionMar 11, 2010Nov 10, 2006

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 VYM 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 VYM Performance

Direxion Daily Semiconductor Bull 3X ETF (SOXL) is an ETF from Direxion Shares ETF Trust and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year SOXL returned +317.62% while VYM returned +17.57%. Year to date, SOXL is up 157.87% versus a gain of 13.91% for VYM.

Over three years, SOXL compounded at +80.48% per year against +18.12% for VYM; over five years the annualized figures are +21.07% and +12.17% respectively. Across the full 17-year window we track, SOXL has the edge at +37.36% annualized vs +10.10%.

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 13.2% for VYM. 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 -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.59. They move together some of the time, and apart the rest.

Fees and Cost Over Time

SOXL charges 0.75% per year while VYM charges 0.04%. On a $10,000 position that is $75 vs $4 annually, a gap of $71 per year that compounds over a long holding period. On income, SOXL currently yields 0.01% against 2.22% for VYM.

Holdings Overlap

VYM already in SOXL10.6%

At least 10.6% of VYM'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.

VYM and SOXL share little of their money.

7 positions in common, counted across the 34 positions we hold weights for in SOXL and 603 in VYM, against full books of 44 and 613.

Top Shared Holdings

StockWeight in SOXLWeight in VYMDifference
AVGOBroadcom Inc5.47%7.29%1.82%
TXNTexas Instruments, Inc2.71%1.13%1.58%
ADIAnalog Devices, Inc.2.69%0.80%1.89%
QCOMQualcomm Inc.1.89%0.81%1.08%
NXPINxp Semiconductors N.V. Common Stock2.16%0.29%1.87%
MCHPMicrochip Technology Inc.1.56%0.20%1.36%
SWKSSkyworks Solutions Inc.0.36%0.04%0.32%

You are not choosing between two funds in isolation.

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

SOXLVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, SOXL or VYM?

SOXL has an expense ratio of 0.75% while VYM charges 0.04%. VYM is the cheaper option, by $71 a year on a $10,000 investment.

Which performed better, SOXL or VYM?

Over the past year SOXL returned +317.62% vs +17.57% for VYM, so SOXL leads on 1-year performance. Over the longest common window we track (17 years), SOXL annualized +37.36% vs +10.10% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, SOXL or VYM?

SOXL has been the more volatile fund at 87.5% annualized versus 13.2% for VYM. Worst drawdown: SOXL -90.5% vs VYM -35.7%.

Should I hold both SOXL and VYM?

SOXL and VYM have a monthly-return correlation of 0.59, 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 VYM?

At least 10.6% of VYM's money is in holdings SOXL also owns. Our book for SOXL is partial, so the real figure is this or higher. They hold 7 positions in common, counted across the 34 positions we hold weights for in SOXL and 603 in VYM.

Which pays a higher dividend, SOXL or VYM?

SOXL yields 0.01% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.

Is VYM better than SOXL?

VYM 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.