SOXL vs. QLD: Which Leveraged ETF Delivers Bigger Gains for Investors?

2 hours ago 1

Katie Brockman, The Motley Fool

Sat, December 27, 2025 astatine 5:01 PM CST 5 min read

SOXL charges a somewhat little disbursal ratio and delivers a higher trailing one-year instrumentality than QLD.
SOXL is acold much volatile, with a deeper five-year drawdown and a higher beta indicating amplified risk.
Both funds usage regular leverage resets, but SOXL focuses exclusively connected semiconductor stocks portion QLD tracks the broader Nasdaq-100.
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The ProShares Ultra QQQ ETF (NYSEMKT:QLD) and the Direxion Daily Semiconductor Bull 3X Shares (NYSEMKT:SOXL) some purpose to supply leveraged vulnerability to high-growth exertion stocks, but their strategies diverge sharply. QLD offers 2x regular returns of the Nasdaq-100 Index, portion SOXL targets 3x regular returns of the NYSE Semiconductor Index.

This examination highlights their costs, caller performance, risk, portfolio makeup, and unsocial features for investors weighing assertive tech exposure.

Metric

QLD

SOXL

Issuer	ProShares	Direxion
Expense ratio	0.95%	0.75%
1-yr instrumentality (as of Dec. 27, 2025)	24.95%	44.62%
Dividend yield	0.18%	0.53%
Beta (5Y monthly)	2.42	5.32
AUM	$10.6 billion	$13.6 billion

Beta measures terms volatility comparative to the S&P 500. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

SOXL offers a higher output and little disbursal ratio than QLD, perchance appealing to those focused connected outgo ratio wrong leveraged ETFs. That said, due to the fact that leveraged ETFs execute champion arsenic short-term investments, output and fees whitethorn not person a important interaction connected your portfolio.

Metric

QLD

SOXL

Max drawdown (5 y)	-63.68%	-90.46%
Growth of $1,000 implicit 5 years	$2,591	$1,491

SOXL provides targeted, triple-leveraged vulnerability to the semiconductor industry, with 100% of assets successful exertion stocks. The money lone contains astir 40 stocks, with apical positions successful Broadcom, Nvidia, and Advanced Micro Devices. Its regular leverage reset means returns whitethorn diverge from expectations implicit longer periods, particularly during volatile markets.

In contrast, QLD delivers 2x regular returns of the Nasdaq-100, giving investors vulnerability not conscionable to semiconductors, but besides to a broader premix of exertion (55% of full assets), connection services (15%), and user cyclicals (13%). Its largest holdings see Nvidia, Apple, and Microsoft. Both funds diagnostic a regular leverage reset, which tin magnify some gains and losses owed to compounding effects.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.

Leveraged ETFs tin amplify returns erstwhile the fund's underlying scale is thriving, but they tin besides spot overmuch steeper downturns erstwhile the scale falters. This makes them high-risk, high-reward investments, and they are lone intended to beryllium held short-term.