BABU vs. SOXL

Last updated Jun 4, 2026

BABU (Direxion Daily BABA Bull 2X ETF) and SOXL (Direxion Daily Semiconductor Bull 3X ETF) are both Leveraged Equities funds from Direxion - BABU tracks the Alibaba Group Holding Limited (BABA) while SOXL tracks the ICE Semiconductor Index. Both are passively managed. At a 0.47 correlation, their price movements are largely independent. BABU charges 0.97%/yr vs 0.75%/yr for SOXL.

Performance

BABU vs. SOXL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily BABA Bull 2X ETF (BABU) and Direxion Daily Semiconductor Bull 3X ETF (SOXL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

BABU

• 1D: -5.41%
• 1M: -11.25%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

SOXL

• 1D: 5.34%
• 1M: 119.95%
• YTD: 567.48%
• 6M: 502.28%
• 1Y: 1,438.30%
• 3Y*: 135.13%
• 5Y*: 48.72%
• 10Y*: 65.39%

*Multi-year figures are annualized to reflect compound growth (CAGR)

BABU vs. SOXL - Yearly Performance Comparison

	2026 (YTD)
BABU Direxion Daily BABA Bull 2X ETF	-44.84%
SOXL Direxion Daily Semiconductor Bull 3X ETF	312.26%

Correlation

The correlation between BABU and SOXL is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Feb 12, 2026	0.47

Return for Risk

BABU vs. SOXL — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SOXL

SOXL Risk / Return Rank: 97
SOXL Sharpe Ratio Rank: 100
SOXL Sortino Ratio Rank: 95
SOXL Omega Ratio Rank: 95
SOXL Calmar Ratio Rank: 99
SOXL Martin Ratio Rank: 99

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BABU vs. SOXL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily BABA Bull 2X ETF (BABU) and Direxion Daily Semiconductor Bull 3X ETF (SOXL). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	BABU	SOXL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	14.28	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.46	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.66	—
Sharpe Ratio (All Time) Calculated using the full available price history	-1.05	0.52	-1.57

Drawdowns

BABU vs. SOXL - Drawdown Comparison

The maximum BABU drawdown since its inception was -49.17%, smaller than the maximum SOXL drawdown of -90.46%. Use the drawdown chart below to compare losses from any high point for BABU and SOXL.

Drawdown Indicators

	BABU	SOXL	Difference
Max Drawdown Largest peak-to-trough decline	-49.17%	-90.46%	+41.29%
Max Drawdown (1Y) Largest decline over 1 year	—	-43.47%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-87.88%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-90.46%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-90.46%	—
Current Drawdown Current decline from peak	-44.84%	0.00%	-44.84%
Average Drawdown Average peak-to-trough decline	-35.05%	-35.01%	-0.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	12.65%	—

Volatility

Volatility by Period

	BABU	SOXL	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	40.82%	—
Volatility (6M) Calculated over the trailing 6-month period	—	81.29%	—
Volatility (1Y) Calculated over the trailing 1-year period	82.22%	102.11%	-19.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	82.22%	107.25%	-25.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	82.22%	99.04%	-16.82%

BABU vs. SOXL - Expense Ratio Comparison

BABU has a 0.97% expense ratio, which is higher than SOXL's 0.75% expense ratio.

Dividends

BABU vs. SOXL - Dividend Comparison

BABU's dividend yield for the trailing twelve months is around 0.36%, more than SOXL's 0.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
BABU Direxion Daily BABA Bull 2X ETF	0.36%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SOXL Direxion Daily Semiconductor Bull 3X ETF	0.03%	0.34%	1.18%	0.51%	1.07%	0.04%	0.05%	0.38%	1.30%	0.09%	4.84%

Frequently Asked Questions

Can I hold both BABU and SOXL in my portfolio?

BABU and SOXL have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, BABU or SOXL?

On fees, SOXL is cheaper at 0.75% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, BABU or SOXL?

SOXL is cheaper with a 0.75% expense ratio, compared with 0.97% for BABU.

Which ETF pays a higher dividend yield, BABU or SOXL?

BABU has the higher dividend yield at 0.36%, compared with 0.03% for SOXL.

What is the main difference between BABU and SOXL?

BABU tracks Alibaba Group Holding Limited (BABA), while SOXL tracks ICE Semiconductor Index. Their fees differ too: 0.97% for BABU and 0.75% for SOXL.