SOXLDirexion Daily Semiconductor Bull 3X Shares
SOXL Fund Description
SOXL provides 3x daily exposure to a modified market-cap-weighted index of companies primarily involved in the design, distribution, manufacture and sale of semiconductors.
SOXL Factset Analytics Insight
SOXL is an aggressive and bullish 1-day bet on the constituents of the PHLX (Philadelphia Stock Exchange) Semiconductor Sector Index, which is also tracked as an unlevered fund by iShares' SOXX. SOXL uses swap agreements and rebalances its 3x leverage daily—meaning over the long haul, targeted returns could look significantly different due to compounding effects of this daily rebalance. The underlying index holds US-listed companies, making foreign companies with ADR listings eligible for inclusion. The index also caps any weighting at 8%, tempering the impact of sector giants Intel and NVIDIA. Nevertheless, SOXL is still a heavy bet on a concentrated group of companies that dominate the semiconductor segment. SOXL charges a high fee, but that's par for the course with leveraged ETFs. More importantly for a tactical product, SOXL's Tradability looks solid with adequate volume and decent spreads considering its 3x exposure to a volatile underlying index.
SOXL Charts And Performance
SOXL Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of SOXL. SOXL is rated a 5 out of 5.