Both ProShares UltraPro QQQ (TQQQ 0.01%) and Direxion Daily Semiconductor Bull 3X Shares (SOXL 5.56%) deliver daily 3x leveraged exposure: TQQQ to the Nasdaq-100 Index and SOXL to the NYSE Semiconductor Index.
This comparison explores which leveraged tech ETF may appeal more depending on an investor’s preference for diversification, costs, and risk profile.
Snapshot (cost & size)
| Metric | SOXL | TQQQ |
|---|---|---|
| Issuer | Direxion | ProShares |
| Expense ratio | 0.75% | 0.82% |
| 1-yr return (as of Oct. 31, 2025) | 58.8% | 68.1% |
| Dividend yield | 0.63% | 0.76% |
| Beta (5Y monthly) | 4.99 | 3.36 |
| AUM | $12.34 billion | $27.54 billion |
Beta measures price volatility relative to the S&P 500.
SOXL offers slightly lower fees, with an expense ratio of 0.75% compared to TQQQ's 0.82%. However, TQQQ not only outpaces SOXL in 12-month total returns, but it also offers a higher dividend payout for income-focused traders.
Performance & risk comparison
| Metric | SOXL | TQQQ |
|---|---|---|
| Max drawdown (5 y) | 90.46% | 81.65% |
| Growth of $1,000 over 5 years | $2,419 | $3,253 |
What's inside
ProShares UltraPro QQQ is built for traders seeking amplified exposure to the Nasdaq-100, tracking a tech-heavy mix (54% technology, 17% communication services, and 13% consumer cyclical) across 101 companies. Its largest positions as of Nov. 5, 2025, were Nvidia, Apple, and Microsoft. With a 15-year history, TQQQ brings an extended track record and a daily leverage reset quirk that may surprise buy-and-hold investors.
Direxion Daily Semiconductor Bull 3X Shares, by contrast, offers a concentrated bet on semiconductors with just 44 holdings -- 100% of which are from the technology sector. Its top holdings include Advanced Micro Devices, Broadcom, and Nvidia. SOXL’s narrower focus means higher potential volatility tied to the chip industry’s cycles, and it also resets leverage daily, amplifying both gains and losses over time.
For more guidance on ETF investing, check out the full guide at this link.
Foolish take
TQQQ and SOXL are both higher-risk, higher-reward investments that have the potential for greater volatility but more lucrative returns.
While TQQQ has a slight edge in terms of one-year total returns, both funds have significantly outperformed the S&P 500 over the same period. With similar dividend yields and expense ratios, the primary difference between these funds lies in diversification.
SOXL is far more concentrated than TQQQ, as it's solely focused on semiconductor stocks. While this can pay off when that industry is thriving, it also significantly reduces diversification and increases risk -- especially during economic downturns.
SOXL's narrow focus can be an advantage if you're looking for a targeted ETF to gain exposure to the semiconductor sector. But if you prefer a more diversified approach, TQQQ's access to more companies across multiple industries can offer a more balanced investment.
Glossary
Leveraged ETF: An exchange-traded fund using financial derivatives to amplify daily returns, often by 2x or 3x.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: Annual dividends paid by a fund, expressed as a percentage of its current price.
Beta: A measure of a fund's volatility compared to the overall market, typically the S&P 500.
AUM (Assets Under Management): The total market value of all assets managed by a fund.
Max drawdown: The largest observed percentage drop from a fund's peak value to its lowest point over a period.
Nasdaq-100 Index: An index of the 100 largest non-financial companies listed on the Nasdaq stock exchange.
NYSE Semiconductor Index: An index tracking major publicly traded semiconductor companies listed on the New York Stock Exchange.
Daily leverage reset: The process by which leveraged ETFs rebalance to maintain their target leverage each trading day.
Holdings: The individual stocks or assets that make up a fund's investment portfolio.
