SOXL, TQQQ Led ETF Trading Volume in 2024

Leveraged semiconductor ETFs dominated trading activity in 2024, as investors sought amplified returns amid the tech sector's rally.

The Direxion Daily Semiconductor Bull 3X Shares (SOXL) topped the list of most actively traded ETFs with an average daily volume of 74.9 million shares, according to data from Bloomberg that examined average year-to-date trading volume as of Dec. 30. 

ProShares UltraPro QQQ (TQQQ), which offers triple leverage on the Nasdaq-100 index, ranked second with an average of 57.8 million shares traded, followed closely by the SPDR S&P 500 ETF Trust (SPY) at 57.7 million shares, the data shows.

The heavy trading in leveraged semiconductor and tech ETFs comes as investors poured over $1 trillion into U.S.-based ETFs in 2024, marking a record year for the investment vehicle amid the S&P 500's 25% gain.

The surge in trading volumes for these products highlights investors' growing comfort with complex ETF strategies in their search for better returns.

Navigating Market Swings With Semiconductor ETFs

The iShares China Large-Cap ETF (FXI) saw the fourth-highest volume at 46.3 million shares year to date, as traders reacted to fluctuations and growing worries in China's economy.

Direxion's 2X leveraged Tesla ETF (TSLL) rounded out the top five with 42.7 million shares traded, capitalizing on the electric automaker's price swings.

The Financial Select Sector SPDR Fund (XLF) averaged 40.7 million shares traded, as investors positioned for interest rate moves, the data reveals.

Long-term Treasury ETF TLT, the iShares 20+ Year Treasury Bond ETF, saw volumes of 39.9 million shares year to date, reflecting bond market activity amid rate uncertainty, according to the data.

Bearish investors, meanwhile, drove 37.5 million shares in volume for the Direxion Daily S&P 500 Bear 3X (SPXS), while the traditional tech-focused Invesco QQQ Trust (QQQ) traded 37.1 million shares.

The Direxion Daily Semiconductor Bear 3X (SOXS), the inverse companion to top-ranked SOXL, completed the top 10 with 36.7 million shares traded, highlighting how traders played both sides of the semiconductor sector's moves.