ERX vs. SOXL
Compare and contrast key facts about Direxion Daily Energy Bull 2X Shares (ERX) and Direxion Daily Semiconductor Bull 3x Shares (SOXL).
ERX and SOXL are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ERX is a passively managed fund by Direxion that tracks the performance of the Energy Select Sector Index (300%). It was launched on Apr 1, 2020. SOXL is a passively managed fund by Direxion that tracks the performance of the PHLX Semiconductor Index (300%). It was launched on Mar 11, 2010. Both ERX and SOXL are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ERX or SOXL.
Key characteristics
| ERX | SOXL | |
|---|---|---|
| YTD Return | 22.74% | -14.64% |
| 1Y Return | 26.10% | 18.24% |
| 3Y Return (Ann) | 32.05% | -25.68% |
| 5Y Return (Ann) | -13.34% | 12.05% |
| 10Y Return (Ann) | -20.46% | 30.98% |
| Sharpe Ratio | 0.60 | 0.19 |
| Sortino Ratio | 1.02 | 0.96 |
| Omega Ratio | 1.13 | 1.12 |
| Calmar Ratio | 0.22 | 0.27 |
| Martin Ratio | 1.64 | 0.60 |
| Ulcer Index | 13.01% | 31.18% |
| Daily Std Dev | 35.47% | 100.74% |
| Max Drawdown | -99.54% | -90.46% |
| Current Drawdown | -94.04% | -62.71% |
Correlation
The correlation between ERX and SOXL is 0.45, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
ERX vs. SOXL - Performance Comparison
In the year-to-date period, ERX achieves a 22.74% return, which is significantly higher than SOXL's -14.64% return. Over the past 10 years, ERX has underperformed SOXL with an annualized return of -20.46%, while SOXL has yielded a comparatively higher 30.98% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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ERX vs. SOXL - Expense Ratio Comparison
ERX has a 1.09% expense ratio, which is higher than SOXL's 0.99% expense ratio.
Risk-Adjusted Performance
ERX vs. SOXL - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Energy Bull 2X Shares (ERX) and Direxion Daily Semiconductor Bull 3x Shares (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.
Dividends
ERX vs. SOXL - Dividend Comparison
ERX's dividend yield for the trailing twelve months is around 2.49%, more than SOXL's 1.15% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
ERX Direxion Daily Energy Bull 2X Shares | 2.49% | 3.17% | 2.23% | 2.16% | 2.35% | 1.56% | 3.10% | 0.85% | 0.00% | 0.00% | 0.00% |
SOXL Direxion Daily Semiconductor Bull 3x Shares | 1.15% | 0.51% | 1.08% | 0.04% | 0.05% | 0.38% | 1.30% | 0.09% | 4.84% | 0.00% | 0.00% |
Drawdowns
ERX vs. SOXL - Drawdown Comparison
The maximum ERX drawdown since its inception was -99.54%, which is greater than SOXL's maximum drawdown of -90.46%. Use the drawdown chart below to compare losses from any high point for ERX and SOXL. For additional features, visit the drawdowns tool.
Volatility
ERX vs. SOXL - Volatility Comparison
The current volatility for Direxion Daily Energy Bull 2X Shares (ERX) is 9.72%, while Direxion Daily Semiconductor Bull 3x Shares (SOXL) has a volatility of 26.28%. This indicates that ERX 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.