SDS vs. SOXL

Last updated Jun 4, 2026

SDS (ProShares UltraShort S&P500) and SOXL (Direxion Daily Semiconductor Bull 3X ETF) are both Leveraged Equities funds - SDS tracks the S&P 500 Index (-200%) while SOXL tracks the ICE Semiconductor Index. Both are passively managed. Over the past 10 years, SDS returned -27.72%/yr vs 65.39%/yr for SOXL. At a correlation of -0.77, they often move in opposite directions. SDS charges 0.91%/yr vs 0.75%/yr for SOXL.

Performance

SDS vs. SOXL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares UltraShort S&P500 (SDS) 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, SDS achieves a -17.06% return, which is significantly lower than SOXL's 567.48% return. Over the past 10 years, SDS has underperformed SOXL with an annualized return of -27.72%, while SOXL has yielded a comparatively higher 65.39% annualized return.

SDS

• 1D: 1.35%
• 1M: -8.86%
• YTD: -17.06%
• 6M: -16.53%
• 1Y: -34.59%
• 3Y*: -28.79%
• 5Y*: -21.98%
• 10Y*: -27.72%

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)

SDS vs. SOXL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SDS ProShares UltraShort S&P500	-17.06%	-26.79%	-29.45%	-31.53%	30.69%	-43.02%	-49.91%	-41.17%	6.04%	-32.02%
SOXL Direxion Daily Semiconductor Bull 3X ETF	567.48%	54.91%	-12.31%	226.98%	-85.66%	118.84%	70.04%	231.83%	-39.07%	141.71%

Correlation

The correlation between SDS and SOXL is -0.71, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.71
Correlation (3Y) Calculated over the trailing 3-year period	-0.76
Correlation (5Y) Calculated over the trailing 5-year period	-0.79
Correlation (10Y) Calculated over the trailing 10-year period	-0.77
Correlation (All Time) Calculated using the full available price history since Mar 12, 2010	-0.77

The correlation between SDS and SOXL has been stable across timeframes, ranging from -0.79 to -0.71 - a consistent structural relationship.

SDS vs. SOXL - Sectors Allocation Comparison

Sectors	SDS	SOXL
Financial Services	94.3%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	100.0%
Utilities	-	-

Return for Risk

SDS vs. SOXL — Risk / Return Rank

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

SDS

SDS Risk / Return Rank: 0
SDS Sharpe Ratio Rank: 0
SDS Sortino Ratio Rank: 0
SDS Omega Ratio Rank: 0
SDS Calmar Ratio Rank: 1
SDS Martin Ratio Rank: 1

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.

SDS vs. SOXL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares UltraShort S&P500 (SDS) 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.

	SDS	SOXL	Difference
Sharpe ratio Return per unit of total volatility	-1.47	14.28	-15.76
Sortino ratio Return per unit of downside risk	-2.28	5.17	-7.45
Omega ratio Gain probability vs. loss probability	0.75	1.72	-0.96
Calmar ratio Return relative to maximum drawdown	-0.96	33.47	-34.43
Martin ratio Return relative to average drawdown	-1.69	114.79	-116.48
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SDS vs. SOXL - Sharpe Ratio Comparison

The current SDS Sharpe Ratio is -1.47, which is lower than the SOXL Sharpe Ratio of 14.28. The chart below compares the historical Sharpe Ratios of SDS 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.

Sharpe Ratios by Period

	SDS	SOXL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.47	14.28	-15.76
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.66	0.46	-1.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.78	0.66	-1.44
Sharpe Ratio (All Time) Calculated using the full available price history	-0.66	0.52	-1.18

Drawdowns

SDS vs. SOXL - Drawdown Comparison

The maximum SDS drawdown since its inception was -99.85%, which is greater than SOXL's maximum drawdown of -90.46%. Use the drawdown chart below to compare losses from any high point for SDS and SOXL.

Drawdown Indicators

	SDS	SOXL	Difference
Max Drawdown Largest peak-to-trough decline	-99.85%	-90.46%	-9.39%
Max Drawdown (1Y) Largest decline over 1 year	-36.20%	-43.47%	+7.27%
Max Drawdown (3Y) Largest decline over 3 years	-68.14%	-87.88%	+19.74%
Max Drawdown (5Y) Largest decline over 5 years	-75.54%	-90.46%	+14.92%
Max Drawdown (10Y) Largest decline over 10 years	-96.48%	-90.46%	-6.02%
Current Drawdown Current decline from peak	-99.85%	0.00%	-99.85%
Average Drawdown Average peak-to-trough decline	-82.73%	-35.01%	-47.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	20.51%	12.65%	+7.86%

Volatility

SDS vs. SOXL - Volatility Comparison

The current volatility for ProShares UltraShort S&P500 (SDS) is 5.59%, while Direxion Daily Semiconductor Bull 3X ETF (SOXL) has a volatility of 40.82%. This indicates that SDS 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

	SDS	SOXL	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.59%	40.82%	-35.23%
Volatility (6M) Calculated over the trailing 6-month period	17.81%	81.29%	-63.48%
Volatility (1Y) Calculated over the trailing 1-year period	23.58%	102.11%	-78.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	33.64%	107.25%	-73.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	35.82%	99.04%	-63.22%

SDS vs. SOXL - Expense Ratio Comparison

SDS has a 0.91% expense ratio, which is higher than SOXL's 0.75% expense ratio.

Dividends

SDS vs. SOXL - Dividend Comparison

SDS's dividend yield for the trailing twelve months is around 5.79%, more than SOXL's 0.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
SDS ProShares UltraShort S&P500	5.79%	5.88%	7.89%	5.77%	0.35%	0.00%	0.92%	1.84%	1.28%	0.09%	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 SDS and SOXL in my portfolio?

SDS and SOXL have a correlation of -0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SDS or SOXL?

SOXL has higher volatility (40.82%) compared to SDS (5.59%). In terms of maximum drawdown, SDS dropped -99.85% vs SOXL's -90.46%.

Which ETF is better, SDS or SOXL?

On 10-year performance, SOXL leads with 65.39% vs -27.72% for SDS. On fees, SOXL is cheaper at 0.75% per year. On volatility, SDS has been the lower-risk option at 5.59%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SDS or SOXL?

Over the 10-year period, SOXL has performed better with a 65.39% return vs -27.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SDS or SOXL?

SOXL is cheaper with a 0.75% expense ratio, compared with 0.91% for SDS.

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

SDS has the higher dividend yield at 5.79%, compared with 0.03% for SOXL.

What is the main difference between SDS and SOXL?

SDS tracks S&P 500 Index (-200%), while SOXL tracks ICE Semiconductor Index. They also come from different issuers: ProShares and Direxion. Their fees differ too: 0.91% for SDS and 0.75% for SOXL.

Which has better risk-adjusted returns?

SOXL currently has the higher Sharpe Ratio (14.28 vs -1.47), 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.