SMN vs. SOXL

Last updated Jun 6, 2026

SMN (ProShares UltraShort Basic Materials) and SOXL (Direxion Daily Semiconductor Bull 3X ETF) are both Leveraged Equities funds - SMN tracks the Dow Jones U.S. Basic Materials Index (-200%) while SOXL tracks the ICE Semiconductor Index. Both are passively managed. Over the past 10 years, SMN returned -24.60%/yr vs 58.09%/yr for SOXL. At a correlation of -0.61, they often move in opposite directions. SMN charges 0.95%/yr vs 0.75%/yr for SOXL.

Performance

SMN vs. SOXL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares UltraShort Basic Materials (SMN) 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, SMN achieves a -20.64% return, which is significantly lower than SOXL's 334.31% return. Over the past 10 years, SMN has underperformed SOXL with an annualized return of -24.60%, while SOXL has yielded a comparatively higher 58.09% annualized return.

SMN

• 1D: 3.92%
• 1M: 7.41%
• YTD: -20.64%
• 6M: -25.54%
• 1Y: -26.57%
• 3Y*: -15.70%
• 5Y*: -13.64%
• 10Y*: -24.60%

SOXL

• 1D: -30.51%
• 1M: 10.06%
• YTD: 334.31%
• 6M: 292.56%
• 1Y: 873.79%
• 3Y*: 104.66%
• 5Y*: 36.47%
• 10Y*: 58.09%

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

SMN vs. SOXL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SMN ProShares UltraShort Basic Materials	-20.64%	-17.96%	7.37%	-20.23%	-3.03%	-45.83%	-55.75%	-33.63%	32.74%	-38.03%
SOXL Direxion Daily Semiconductor Bull 3X ETF	334.31%	54.91%	-12.31%	226.98%	-85.66%	118.84%	70.04%	231.83%	-39.07%	141.71%

Correlation

The correlation between SMN and SOXL is -0.44, 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	-0.44
Correlation (3Y) Calculated over the trailing 3-year period	-0.46
Correlation (5Y) Calculated over the trailing 5-year period	-0.54
Correlation (10Y) Calculated over the trailing 10-year period	-0.55
Correlation (All Time) Calculated using the full available price history since Mar 12, 2010	-0.61

The correlation between SMN and SOXL shifts across timeframes, from -0.61 (all time) to -0.44 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

SMN vs. SOXL — Risk / Return Rank

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

SMN

SMN Risk / Return Rank: 3
SMN Sharpe Ratio Rank: 3
SMN Sortino Ratio Rank: 3
SMN Omega Ratio Rank: 3
SMN Calmar Ratio Rank: 3
SMN Martin Ratio Rank: 3

SOXL

SOXL Risk / Return Rank: 95
SOXL Sharpe Ratio Rank: 99
SOXL Sortino Ratio Rank: 90
SOXL Omega Ratio Rank: 91
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.

SMN vs. SOXL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares UltraShort Basic Materials (SMN) 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.

	SMN	SOXL	Difference
Sharpe ratio: Return per unit of total volatility	-0.78	8.26	-9.04
Sortino ratio: Return per unit of downside risk	-1.01	4.08	-5.09
Omega ratio: Gain probability vs. loss probability	0.89	1.59	-0.70
Calmar ratio: Return relative to maximum drawdown	-0.69	20.30	-21.00
Martin ratio: Return relative to average drawdown	-1.24	68.57	-69.81
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SMN vs. SOXL - Sharpe Ratio Comparison

The current SMN Sharpe Ratio is -0.78, which is lower than the SOXL Sharpe Ratio of 8.26. The chart below compares the historical Sharpe Ratios of SMN 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

	SMN	SOXL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.78	8.26	-9.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.35	0.34	-0.68
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.57	0.59	-1.16
Sharpe Ratio (All Time) Calculated using the full available price history	-0.53	0.47	-1.01

Drawdowns

SMN vs. SOXL - Drawdown Comparison

The maximum SMN drawdown since its inception was -99.92%, which is greater than SOXL's maximum drawdown of -90.46%. Use the drawdown chart below to compare losses from any high point for SMN and SOXL.

Drawdown Indicators

	SMN	SOXL	Difference
Max Drawdown Largest peak-to-trough decline	-99.92%	-90.46%	-9.46%
Max Drawdown (1Y) Largest decline over 1 year	-38.52%	-43.47%	+4.95%
Max Drawdown (3Y) Largest decline over 3 years	-53.71%	-87.88%	+34.17%
Max Drawdown (5Y) Largest decline over 5 years	-66.05%	-90.46%	+24.41%
Max Drawdown (10Y) Largest decline over 10 years	-95.39%	-90.46%	-4.93%
Current Drawdown Current decline from peak	-99.91%	-34.93%	-64.98%
Average Drawdown Average peak-to-trough decline	-90.55%	-35.01%	-55.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	21.45%	12.85%	+8.60%

Volatility

SMN vs. SOXL - Volatility Comparison

The current volatility for ProShares UltraShort Basic Materials (SMN) is 10.97%, while Direxion Daily Semiconductor Bull 3X ETF (SOXL) has a volatility of 55.19%. This indicates that SMN 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

	SMN	SOXL	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.97%	55.19%	-44.22%
Volatility (6M) Calculated over the trailing 6-month period	26.86%	89.77%	-62.91%
Volatility (1Y) Calculated over the trailing 1-year period	34.06%	106.94%	-72.88%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	39.57%	108.10%	-68.53%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	42.91%	99.53%	-56.62%

SMN vs. SOXL - Expense Ratio Comparison

SMN has a 0.95% expense ratio, which is higher than SOXL's 0.75% expense ratio.

Dividends

SMN vs. SOXL - Dividend Comparison

SMN's dividend yield for the trailing twelve months is around 4.43%, more than SOXL's 0.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
SMN ProShares UltraShort Basic Materials	4.43%	4.08%	5.02%	4.54%	0.42%	0.00%	0.00%	0.72%	0.06%	0.00%	0.00%
SOXL Direxion Daily Semiconductor Bull 3X ETF	0.04%	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 SMN and SOXL in my portfolio?

SMN and SOXL have a correlation of -0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SMN or SOXL?

SOXL has higher volatility (55.19%) compared to SMN (10.97%). In terms of maximum drawdown, SMN dropped -99.92% vs SOXL's -90.46%.

Which ETF is better, SMN or SOXL?

On 10-year performance, SOXL leads with 58.09% vs -24.60% for SMN. On fees, SOXL is cheaper at 0.75% per year. On volatility, SMN has been the lower-risk option at 10.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMN or SOXL?

Over the 10-year period, SOXL has performed better with a 58.09% return vs -24.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMN or SOXL?

SOXL is cheaper with a 0.75% expense ratio, compared with 0.95% for SMN.

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

SMN has the higher dividend yield at 4.43%, compared with 0.04% for SOXL.

What is the main difference between SMN and SOXL?

SMN tracks Dow Jones U.S. Basic Materials Index (-200%), while SOXL tracks ICE Semiconductor Index. They also come from different issuers: ProShares and Direxion. Their fees differ too: 0.95% for SMN and 0.75% for SOXL.

Which has better risk-adjusted returns?

SOXL currently has the higher Sharpe Ratio (8.26 vs -0.78), 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.