Direxion Daily Semiconductor Bull 3x Shares

Direxion Daily Semiconductor Bull 3x Shares (SOXL) seeks three times the daily return of the ICE Semiconductor Index, which tracks the 30 largest U.S.-listed chip companies, such as NVIDIA, AMD and Broadcom. It is built for short-term trading on chip stocks: because it resets its leverage daily, returns over longer periods can drift far from three times the index. Swings are extreme: it lost 85.6% in 2022, then gained 226.2% in 2023.

• Over the year to Nov 2, 2026, SOXL returned +42.8%.
• Its 5-year annualized return was +6.3% and its 10-year +38.4%.
• In the 2020 COVID crash it fell 80.4% and regained its old high 7.6 months after the low.
• Its worst full calendar year was 2022 (-85.7%); its best was 2019 (+231.8%).
• The deepest fall in its price history was 90.5% (Dec 27, 2021 to Oct 14, 2022), recovered by Feb 25, 2026.

As of Jul 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (55.48% of net assets), with its exposure coming from 9 swap and futures positions rather than from owning the stocks outright.

• Over the three months to Jul 31, 2026, investors added a net $2.53B (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +75.92%, +19.50%, -57.29%.

SOXL's benchmark is the ICE Semiconductor Index: the 30 largest U.S.-listed semiconductor companies, including chipmakers, firms using LED and OLED technology, and suppliers of chip equipment and services. Bigger companies, measured by the value of shares available to the public, get bigger weights, adjusted by the index's rules. The index is rebalanced quarterly and its membership reset yearly.

The fund seeks 300% of the index's return each day, before fees. It mainly uses swap agreements, contracts in which a counterparty such as a bank pays the fund the index's return, along with futures and stocks. As of July 31, 2026, stocks made up about 69% of net assets, led by NVIDIA (6.0%), AMD (5.8%) and Broadcom (5.5%), and about 55% sat in cash and cash-like holdings. If a swap counterparty fails to pay, the fund loses money.

At each market close, Rafferty Asset Management, the fund's adviser, resets exposure to three times net assets, adding after the index rises and trimming after it falls. Portfolio turnover, the share of holdings replaced in a year, was 250%. Because each day's return compounds on the last, longer-term results will likely differ from three times the index. The prospectus warns the fund will lose money if the index is flat over time and can lose money even while the index rises.

• SOXL charges 0.75% a year.
• The fee includes a 0.16% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $77 in the first year and $1,105 over 10 years (assuming a 5% annual return).

It aims for three times the index's return over a single day, and its prospectus warns that over longer periods compounding can cause losses even when its index rises.

SOXL adds amplified daily exposure to chip stocks, but its falls have been severe. In the 2020 COVID crash it dropped 80.4% in weeks, then took 7.6 months to recover. In the 2022 bear market it lost 89.8%, and its deepest drop, 90.5% from December 2021 to October 2022, took 40.4 months to recover. Its worst calendar year, 2022, brought an 85.6% loss. It launched in 2010, so it has no 2008 record. Anyone forced to cash out during such a slump would lock in most of the loss.

Income is minimal: a 0.09% yield over the past year as of October 29, 2026, paid annually. The expense ratio is 0.75%; the SEC's standard example puts costs on $10,000 at $77 for one year and $1,105 over 10 years, assuming 5% annual returns. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by leveraged/inverse funds on the same index (semiconductor), same direction.