SOFX vs. SOXL

Last updated Jun 24, 2026

SOFX (Defiance Daily Target 2X Long SOFI ETF) and SOXL (Direxion Daily Semiconductor Bull 3X ETF) are both Leveraged Equities funds. SOFX is actively managed, while SOXL is passively managed. Over the past year, SOFX returned -26.37% vs 976.09% for SOXL. At a 0.43 correlation, their price movements are largely independent. SOFX charges 1.29%/yr vs 0.75%/yr for SOXL.

Performance

SOFX vs. SOXL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Defiance Daily Target 2X Long SOFI ETF (SOFX) 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, SOFX achieves a -66.17% return, which is significantly lower than SOXL's 450.61% return.

SOFX

• 1D: 2.02%
• 1M: 16.48%
• YTD: -66.17%
• 6M: -68.88%
• 1Y: -26.37%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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)

SOFX vs. SOXL - Yearly Performance Comparison

	2026 (YTD)	2025
SOFX Defiance Daily Target 2X Long SOFI ETF	-66.17%	54.87%
SOXL Direxion Daily Semiconductor Bull 3X ETF	450.61%	41.30%

Correlation

The correlation between SOFX and SOXL is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.33
Correlation (All Time) Calculated using the full available price history since Jan 16, 2025	0.43

The correlation between SOFX and SOXL shifts across timeframes, from 0.33 (1 year) to 0.43 (all time), reflecting how their relationship changes across market environments.

SOFX vs. SOXL - Sectors Allocation Comparison

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

Return for Risk

SOFX vs. SOXL — Risk / Return Rank

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

SOFX

SOFX Risk / Return Rank: 8
SOFX Sharpe Ratio Rank: 7
SOFX Sortino Ratio Rank: 11
SOFX Omega Ratio Rank: 11
SOFX Calmar Ratio Rank: 6
SOFX Martin Ratio Rank: 7

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.

SOFX vs. SOXL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Defiance Daily Target 2X Long SOFI ETF (SOFX) 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.

	SOFX	SOXL	Difference
Sharpe ratio: Return per unit of total volatility	-0.24	8.45	-8.68
Sortino ratio: Return per unit of downside risk	0.41	4.03	-3.62
Omega ratio: Gain probability vs. loss probability	1.05	1.58	-0.53
Calmar ratio: Return relative to maximum drawdown	-0.32	22.69	-23.01
Martin ratio: Return relative to average drawdown	-0.52	72.83	-73.35

SOFX vs. SOXL - Sharpe Ratio Comparison

The current SOFX Sharpe Ratio is -0.24, which is lower than the SOXL Sharpe Ratio of 8.45. The chart below compares the historical Sharpe Ratios of SOFX 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

SOFX vs. SOXL - Drawdown Comparison

The maximum SOFX drawdown since its inception was -83.23%, smaller than the maximum SOXL drawdown of -90.46%. Use the drawdown chart below to compare losses from any high point for SOFX and SOXL.

Drawdown Indicators

	SOFX	SOXL	Difference
Max Drawdown Largest peak-to-trough decline	-83.23%	-90.46%	+7.23%
Max Drawdown (1Y) Largest decline over 1 year	-83.23%	-43.47%	-39.76%
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	-79.50%	-23.06%	-56.44%
Average Drawdown Average peak-to-trough decline	-43.58%	-34.95%	-8.63%
Ulcer Index Depth and duration of drawdowns from previous peaks	50.68%	13.52%	+37.16%

Volatility

SOFX vs. SOXL - Volatility Comparison

The current volatility for Defiance Daily Target 2X Long SOFI ETF (SOFX) is 35.21%, while Direxion Daily Semiconductor Bull 3X ETF (SOXL) has a volatility of 68.39%. This indicates that SOFX 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

	SOFX	SOXL	Difference
Volatility (1M) Calculated over the trailing 1-month period	35.21%	68.39%	-33.18%
Volatility (6M) Calculated over the trailing 6-month period	78.17%	99.84%	-21.67%
Volatility (1Y) Calculated over the trailing 1-year period	111.51%	116.79%	-5.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	121.86%	110.35%	+11.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	121.86%	100.62%	+21.24%

SOFX vs. SOXL - Expense Ratio Comparison

SOFX has a 1.29% expense ratio, which is higher than SOXL's 0.75% expense ratio.

Dividends

SOFX vs. SOXL - Dividend Comparison

SOFX's dividend yield for the trailing twelve months is around 37.44%, more than SOXL's 0.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
SOFX Defiance Daily Target 2X Long SOFI ETF	37.44%	12.67%	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 SOFX and SOXL in my portfolio?

SOFX and SOXL have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SOFX or SOXL?

SOXL has higher volatility (68.39%) compared to SOFX (35.21%). In terms of maximum drawdown, SOFX dropped -83.23% vs SOXL's -90.46%.

Which ETF is better, SOFX or SOXL?

On 1-year performance, SOXL leads with 976.09% vs -26.37% for SOFX. On fees, SOXL is cheaper at 0.75% per year. On volatility, SOFX has been the lower-risk option at 35.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SOFX or SOXL?

Over the 1-year period, SOXL has performed better with a 976.09% return vs -26.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SOFX or SOXL?

SOXL is cheaper with a 0.75% expense ratio, compared with 1.29% for SOFX.

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

SOFX has the higher dividend yield at 37.44%, compared with 0.03% for SOXL.

What is the main difference between SOFX and SOXL?

They also come from different issuers: Defiance and Direxion. Their fees differ too: 1.29% for SOFX and 0.75% for SOXL.

Which has better risk-adjusted returns?

SOXL currently has the higher Sharpe Ratio (8.45 vs -0.24), 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.