The Direxion Daily Semiconductor Bull (SOXL) and Bear (SOXS) 3X Shares aim daily investment returns of 300 percent, or 300 percent of the inverse (or opposite), of the ICE Semiconductor Index performance, before fees and expenses. There is no assurance that the funds will achieve their stated investment goals.
How does the SOXL ETF function?
The Direxion Daily Semiconductor Bull (SOXL) and Bear (SOXS) 3X Shares aim daily investment returns of 300 percent, or 300 percent of the inverse (or opposite), of the ICE Semiconductor Index performance, before fees and expenses. There is no assurance that the funds will achieve their stated investment goals.
SOXL is a type of exchange-traded fund.
The investment seeks daily investment outcomes of 300 percent of the daily performance of the PHLX Semiconductor Sector Index, before fees and expenses. Under normal circumstances, the fund invests at least 80% of its net assets (including borrowing for investment purposes) in financial instruments such as swap agreements, index securities, index ETFs, and other financial instruments that give daily leveraged exposure to the index or to index ETFs. The index tracks the performance of companies that design, distribute, produce, and sell semiconductors in the United States. The fund has no diversification.
Is SOXL a good investment?
SOXL has a score of 77, which is 54% higher than its historic median score of 50, implying lesser risk than usual. In terms of its previous Stock Score levels, SOXL is currently trading in the 70-80 percentile range.
Is it possible to short SOXL?
Availability of Short Shares The number of shares of US:SOXL that can be shorted at a top prime brokerage is shown in this table. It isn’t the total number of shares that can be shorted, nor is it the amount of short interest.
Are you able to hold SOXL?
As a result, SOXL is only intended for experienced investors who are willing to face large risks. SOXL, like any other leveraged ETF, is not appropriate for long-term investment.
What is a leveraged exchange-traded fund (ETF)?
A leveraged exchange-traded fund (ETF) is a marketable product that leverages the returns of an underlying index by using financial derivatives and loans. A leveraged exchange-traded fund may aim for a 2:1 or 3:1 ratio, whereas a regular exchange-traded fund normally tracks the equities in its underlying index one-to-one.
Most indices, such as the Nasdaq 100 Index and the Dow Jones Industrial Average, include leveraged ETFs (DJIA).
Does Soxl age?
However, regardless of the success of semiconductor stocks, SOXL is predicted to lose roughly 8% of its value per year due to leverage decay (i.e not expecting the underlying chip stocks to rise or fall).
Is SPXL a good investment?
SPXL is a safe long-term investment, but only for investors with a high risk appetite. SPXL investors should expect strong outperformance against the S&P 500 in the majority of circumstances and over time.
Is Tqqq a good investment?
In general, QQQ is a good choice for investors looking for a large-cap growth stock ETF that can outperform the S&P 500 over time. TQQQ is best for individuals that have a high risk tolerance and want to invest for a limited length of time.