SOXL vs. TQQQ
Compare and contrast key facts about Direxion Daily Semiconductor Bull 3x Shares (SOXL) and ProShares UltraPro QQQ (TQQQ).
SOXL and TQQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. 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. TQQQ is a passively managed fund by ProShares that tracks the performance of the NASDAQ-100 Index (300%). It was launched on Feb 9, 2010. Both SOXL and TQQQ 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: SOXL or TQQQ.
Key characteristics
| SOXL | TQQQ | |
|---|---|---|
| YTD Return | 11.27% | 4.42% |
| 1Y Return | 130.21% | 94.93% |
| 3Y Return (Ann) | -3.60% | -0.16% |
| 5Y Return (Ann) | 23.18% | 27.67% |
| 10Y Return (Ann) | 38.56% | 36.30% |
| Sharpe Ratio | 1.48 | 1.96 |
| Daily Std Dev | 83.09% | 48.30% |
| Max Drawdown | -90.46% | -81.66% |
| Current Drawdown | -51.40% | -38.90% |
Correlation
The correlation between SOXL and TQQQ is 0.83, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
SOXL vs. TQQQ - Performance Comparison
In the year-to-date period, SOXL achieves a 11.27% return, which is significantly higher than TQQQ's 4.42% return. Over the past 10 years, SOXL has outperformed TQQQ with an annualized return of 38.56%, while TQQQ has yielded a comparatively lower 36.30% 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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SOXL vs. TQQQ - Expense Ratio Comparison
Risk-Adjusted Performance
SOXL vs. TQQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Semiconductor Bull 3x Shares (SOXL) and ProShares UltraPro QQQ (TQQQ). 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
SOXL vs. TQQQ - Dividend Comparison
SOXL's dividend yield for the trailing twelve months is around 0.48%, less than TQQQ's 1.34% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
SOXL Direxion Daily Semiconductor Bull 3x Shares | 0.48% | 0.51% | 1.07% | 0.04% | 0.05% | 0.38% | 1.30% | 0.09% | 4.84% | 0.00% | 0.00% |
TQQQ ProShares UltraPro QQQ | 1.34% | 1.26% | 0.57% | 0.00% | 0.00% | 0.06% | 0.11% | 0.00% | 0.00% | 0.01% | 0.03% |
Drawdowns
SOXL vs. TQQQ - Drawdown Comparison
The maximum SOXL drawdown since its inception was -90.46%, which is greater than TQQQ's maximum drawdown of -81.66%. Use the drawdown chart below to compare losses from any high point for SOXL and TQQQ. For additional features, visit the drawdowns tool.
Volatility
SOXL vs. TQQQ - Volatility Comparison
Direxion Daily Semiconductor Bull 3x Shares (SOXL) has a higher volatility of 22.63% compared to ProShares UltraPro QQQ (TQQQ) at 12.60%. This indicates that SOXL's price experiences larger fluctuations and is considered to be riskier than TQQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.