The ProShares Ultra QQQ ETF (QLD 2.92%) and the Direxion Daily Semiconductor Bull 3X Shares (SOXL 9.62%) both aim to provide leveraged exposure to high-growth technology stocks, but their strategies diverge sharply. QLD offers 2x daily returns of the Nasdaq-100 Index, while SOXL targets 3x daily returns of the NYSE Semiconductor Index.
This comparison highlights their costs, recent performance, risk, portfolio makeup, and unique features for investors weighing aggressive tech exposure.
Snapshot (cost & size)
| Metric | QLD | SOXL |
|---|---|---|
| Issuer | ProShares | Direxion |
| Expense ratio | 0.95% | 0.75% |
| 1-yr return (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 price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
SOXL offers a higher yield and lower expense ratio than QLD, potentially appealing to those focused on cost efficiency within leveraged ETFs. That said, because leveraged ETFs perform best as short-term investments, yield and fees may not have a significant impact on your portfolio.
Performance & risk comparison
| Metric | QLD | SOXL |
|---|---|---|
| Max drawdown (5 y) | -63.68% | -90.46% |
| Growth of $1,000 over 5 years | $2,591 | $1,491 |
What's inside
SOXL provides targeted, triple-leveraged exposure to the semiconductor industry, with 100% of assets in technology stocks. The fund only contains roughly 40 stocks, with top positions in Broadcom, Nvidia, and Advanced Micro Devices. Its daily leverage reset means returns may diverge from expectations over longer periods, especially during volatile markets.
In contrast, QLD delivers 2x daily returns of the Nasdaq-100, giving investors exposure not just to semiconductors, but also to a broader mix of technology (55% of total assets), communication services (15%), and consumer cyclicals (13%). Its largest holdings include Nvidia, Apple, and Microsoft. Both funds feature a daily leverage reset, which can magnify both gains and losses due to compounding effects.
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What this means for investors
Leveraged ETFs can amplify returns when the fund's underlying index is thriving, but they can also see much steeper downturns when the index falters. This makes them high-risk, high-reward investments, and they are only intended to be held short-term.
SOXL offers greater potential returns, aiming to triple the daily returns of the semiconductor sector. This industry is one of the most volatile in the market, but it's also proven to be incredibly lucrative in recent years.
QLD, on the other hand, mitigates some risk by tracking the broader Nasdaq-100 and only aiming for double its daily returns. With more diversification and smaller earnings goals, this ETF carries less risk than SOXL, but it also has less earning potential.
Over the last 12 months, SOXL has outperformed QLD. Yet with its much higher beta and deeper max drawdown, investors can expect more significant price swings with SOXL. That doesn't necessarily mean QLD is not risky, as all leveraged ETFs are more prone to volatility than standard funds. But between the two, SOXL is the more turbulent -- and potentially more lucrative -- choice.
Where you choose to buy will depend mostly on your risk tolerance. Funds like SOXL that boast 3x daily leverage are not for risk-averse investors, but if you're looking for a short-term play on the semiconductor industry, it could be a good fit. For others seeking a leveraged fund with a little less risk, QLD's broader focus and 2x daily leverage might be a bit more palatable.
Glossary
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Leveraged ETF: An exchange-traded fund designed to amplify daily returns, often using financial derivatives and debt.
2x daily returns: A strategy aiming to deliver twice the daily performance of a specified index.
3x daily returns: A strategy aiming to deliver three times the daily performance of a specified index.
Nasdaq-100 Index: A stock market index of 100 of the largest non-financial companies listed on the Nasdaq exchange.
NYSE Semiconductor Index: An index tracking the performance of major semiconductor companies listed on the New York Stock Exchange.
Beta: A measure of an investment's volatility compared to the overall market, typically the S&P 500.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a specific period.
Dividend yield: Annual dividends paid by a fund or stock, shown as a percentage of its current price.
Daily leverage reset: The process by which leveraged ETFs adjust exposure each day to maintain their target leverage ratio.
Compounding effects: The impact of daily returns building on each other, which can cause long-term results to differ from expected multiples.
Assets under management (AUM): The total market value of assets that a fund or investment company manages on behalf of investors.
