EDC vs. SOXL

Last updated Jun 24, 2026

EDC (Direxion Daily Emerging Markets Bull 3X Shares) and SOXL (Direxion Daily Semiconductor Bull 3X ETF) are both Leveraged Equities funds from Direxion - EDC tracks the MSCI Emerging Markets Index (300%) while SOXL tracks the ICE Semiconductor Index. Both are passively managed. Over the past 10 years, EDC returned 8.13%/yr vs 64.56%/yr for SOXL. A 0.64 correlation means they provide meaningful diversification when combined. EDC charges 1.33%/yr vs 0.75%/yr for SOXL.

Performance

EDC vs. SOXL - Performance Comparison

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

Returns By Period

In the year-to-date period, EDC achieves a 55.46% return, which is significantly lower than SOXL's 450.61% return. Over the past 10 years, EDC has underperformed SOXL with an annualized return of 8.13%, while SOXL has yielded a comparatively higher 64.56% annualized return.

EDC

• 1D: -17.43%
• 1M: 1.18%
• YTD: 55.46%
• 6M: 58.75%
• 1Y: 138.81%
• 3Y*: 45.52%
• 5Y*: -2.63%
• 10Y*: 8.13%

SOXL

• 1D: -23.06%
• 1M: 21.44%
• YTD: 450.61%
• 6M: 429.57%
• 1Y: 976.09%
• 3Y*: 120.84%
• 5Y*: 42.16%
• 10Y*: 64.56%

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

EDC vs. SOXL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EDC Direxion Daily Emerging Markets Bull 3X Shares	55.46%	94.58%	-2.00%	7.48%	-60.25%	-20.81%	6.49%	43.92%	-49.87%	138.61%
SOXL Direxion Daily Semiconductor Bull 3X ETF	450.61%	54.91%	-12.31%	226.98%	-85.66%	118.84%	70.04%	231.83%	-39.07%	141.71%

Correlation

The correlation between EDC and SOXL is 0.74, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.74
Correlation (3Y) Calculated over the trailing 3-year period	0.65
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (10Y) Calculated over the trailing 10-year period	0.64
Correlation (All Time) Calculated using the full available price history since Mar 11, 2010	0.64

The correlation between EDC and SOXL has been stable across timeframes, ranging from 0.64 to 0.74 - a consistent structural relationship.

EDC vs. SOXL - Sectors Allocation Comparison

Sectors	EDC	SOXL
Technology	32.7%	100.0%
Financial Services	20.8%	-
Consumer Cyclical	10.3%	-
Communication Services	7.8%	-
Industrials	7.3%	-
Basic Materials	7.0%	-
Energy	4.4%	-
Consumer Defensive	3.2%	-
Healthcare	3.2%	-
Utilities	2.2%	-
Real Estate	1.1%	-

Return for Risk

EDC vs. SOXL — Risk / Return Rank

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

EDC

EDC Risk / Return Rank: 65
EDC Sharpe Ratio Rank: 66
EDC Sortino Ratio Rank: 51
EDC Omega Ratio Rank: 60
EDC Calmar Ratio Rank: 76
EDC Martin Ratio Rank: 70

SOXL

SOXL Risk / Return Rank: 96
SOXL Sharpe Ratio Rank: 99
SOXL Sortino Ratio Rank: 90
SOXL Omega Ratio Rank: 92
SOXL Calmar Ratio Rank: 99
SOXL Martin Ratio Rank: 98

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.

EDC vs. SOXL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Emerging Markets Bull 3X Shares (EDC) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	EDC	SOXL	Difference
Sharpe ratio: Return per unit of total volatility	2.05	8.45	-6.40
Sortino ratio: Return per unit of downside risk	2.37	4.03	-1.67
Omega ratio: Gain probability vs. loss probability	1.35	1.58	-0.23
Calmar ratio: Return relative to maximum drawdown	3.68	22.69	-19.01
Martin ratio: Return relative to average drawdown	12.31	72.83	-60.53

EDC vs. SOXL - Sharpe Ratio Comparison

The current EDC Sharpe Ratio is 2.05, which is lower than the SOXL Sharpe Ratio of 8.45. The chart below compares the historical Sharpe Ratios of EDC and SOXL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

EDC vs. SOXL - Drawdown Comparison

The maximum EDC drawdown since its inception was -92.54%, roughly equal to the maximum SOXL drawdown of -90.46%. Use the drawdown chart below to compare losses from any high point for EDC and SOXL.

Drawdown Indicators

	EDC	SOXL	Difference
Max Drawdown Largest peak-to-trough decline	-92.54%	-90.46%	-2.08%
Max Drawdown (1Y) Largest decline over 1 year	-37.98%	-43.47%	+5.49%
Max Drawdown (3Y) Largest decline over 3 years	-49.48%	-87.88%	+38.40%
Max Drawdown (5Y) Largest decline over 5 years	-80.70%	-90.46%	+9.76%
Max Drawdown (10Y) Largest decline over 10 years	-87.01%	-90.46%	+3.45%
Current Drawdown Current decline from peak	-67.00%	-23.06%	-43.94%
Average Drawdown Average peak-to-trough decline	-65.34%	-34.95%	-30.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.33%	13.52%	-2.19%

Volatility

EDC vs. SOXL - Volatility Comparison

The current volatility for Direxion Daily Emerging Markets Bull 3X Shares (EDC) is 39.16%, while Direxion Daily Semiconductor Bull 3X ETF (SOXL) has a volatility of 68.39%. This indicates that EDC experiences smaller price fluctuations and is considered to be less risky than SOXL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EDC	SOXL	Difference
Volatility (1M) Calculated over the trailing 1-month period	39.16%	68.39%	-29.23%
Volatility (6M) Calculated over the trailing 6-month period	62.81%	99.84%	-37.03%
Volatility (1Y) Calculated over the trailing 1-year period	68.25%	116.79%	-48.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	58.62%	110.35%	-51.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	61.23%	100.62%	-39.39%

EDC vs. SOXL - Expense Ratio Comparison

EDC has a 1.33% expense ratio, which is higher than SOXL's 0.75% expense ratio.

Dividends

EDC vs. SOXL - Dividend Comparison

EDC's dividend yield for the trailing twelve months is around 1.10%, more than SOXL's 0.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
EDC Direxion Daily Emerging Markets Bull 3X Shares	1.10%	1.79%	3.94%	3.54%	0.00%	0.18%	0.44%	0.97%	0.78%	0.25%	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 EDC and SOXL in my portfolio?

EDC and SOXL have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EDC or SOXL?

SOXL has higher volatility (68.39%) compared to EDC (39.16%). In terms of maximum drawdown, EDC dropped -92.54% vs SOXL's -90.46%.

Which ETF is better, EDC or SOXL?

On 10-year performance, SOXL leads with 64.56% vs 8.13% for EDC. On fees, SOXL is cheaper at 0.75% per year. On volatility, EDC has been the lower-risk option at 39.16%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EDC or SOXL?

Over the 10-year period, SOXL has performed better with a 64.56% return vs 8.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EDC or SOXL?

SOXL is cheaper with a 0.75% expense ratio, compared with 1.33% for EDC.

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

EDC has the higher dividend yield at 1.10%, compared with 0.03% for SOXL.

What is the main difference between EDC and SOXL?

EDC tracks MSCI Emerging Markets Index (300%), while SOXL tracks ICE Semiconductor Index. Their fees differ too: 1.33% for EDC and 0.75% for SOXL.

Which has better risk-adjusted returns?

SOXL currently has the higher Sharpe Ratio (8.45 vs 2.05), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.