Better High-Return ETF: SOXL vs. SSO

1 hour ago 3

Robert Izquierdo, The Motley Fool

Sat, December 20, 2025 astatine 10:04 AM CST 5 min read

SOXL’s 3x leverage and semiconductor absorption make overmuch higher volatility and deeper drawdowns than SSO’s 2x S&P 500 exposure.
Both funds complaint akin expenses, but SSO delivers a higher dividend output and broader diversification.
SOXL offers fantabulous liquidity and outsized risk, portion SSO’s assemblage premix is much balanced.
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ProShares Ultra S&P500 ((NYSEMKT:SSO) and Direxion Daily Semiconductor Bull 3X Shares (NYSEMKT:SOXL) some present regular leveraged exposure, but SOXL’s assemblage attraction and triple leverage thrust overmuch greater volatility, portion SSO spreads hazard crossed the full S&P 500 Index (SNPINDEX:^GSPC).

Both SSO and SOXL are designed for traders seeking amplified returns, but their approaches disagree sharply: SSO targets 2x regular S&P 500 show for wide marketplace exposure, portion SOXL aims for 3x regular returns of a semiconductor-only index. This examination covers cost, risk, returns, liquidity, and portfolio operation to assistance clarify which leveraged strategy whitethorn entreaty much to antithetic hazard appetites.

Metric

SSO

SOXL

Issuer	ProShares	Direxion
Expense ratio	0.88%	0.89%
1-yr instrumentality (as of Dec. 17, 2025)	14.0%	15.7%
Dividend yield	1.2%	0.6%
AUM	$7.1 billion	$13.9 billion

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

Both funds complaint astir identical disbursal ratios, but SSO is marginally much affordable. SSO besides delivers a higher dividend yield, which whitethorn entreaty to those seeking a humble income alongside leveraged exposure.

Metric

SSO

SOXL

Max drawdown (5 y)	(46.77%)	(90.51%)
Growth of $1,000 implicit 5 years	$2,509	$1,195

SOXL is simply a pure-play connected the semiconductor sector, with 100% of its portfolio successful exertion stocks and lone 44 holdings. Top positions see Advanced Micro Devices (NASDAQ:AMD), Broadcom (NASDAQ:AVGO), and Nvidia (NASDAQ:NVDA), each representing little than 2% of assets. The fund’s 15.8-year way grounds and regular leverage reset mean it is engineered for short-term tactical trades, not buy-and-hold investing.

By contrast, SSO tracks the afloat S&P 500, delivering vulnerability to technology, financials, and a wide array of U.S. sectors. Its largest positions — Nvidia, Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT) — bespeak the S&P 500’s tech tilt, but SSO’s 521 holdings make overmuch broader diversification. Like SOXL, SSO’s regular leverage reset is simply a cardinal hazard origin for semipermanent holders.