SOXL vs TECL

SOXLADirexion Daily Semiconductor Bull 3X ETF

TECLADirexion Daily Technology Bull 3X ETF

In short

SOXL A 3x bet on chip stocks that resets every single day. Direxion launched it in 2010, long before AI made semiconductors the market's main event, and it is now one of the most heavily traded leveraged funds out there.

TECL TECL takes the S&P 500's technology sector and triples its daily move: roughly 80 large-cap names, software to semiconductors, not a chips-only slice. The leverage resets every day, so it is built for short holding periods.

Stated mandate

SOXL It is designed to deliver a daily result three times the performance of the NYSE Semiconductor Index, before fees and expenses, with the objective applying for a single day.

TECL The fund seeks daily investment results equal to 300% of the performance of the Technology Select Sector Index.

Why people hold it

• SOXL Cheap for the aisle it sits in: 0.75% net of a waiver through September 1, 2027 (0.91% gross), below the category median and under TQQQ's 0.78% net of a waiver through September 30, 2027.
• The mandate is mechanical: 300% of the NYSE Semiconductor Index's daily move, before fees and expenses, across roughly 40 chip names. No stock picking, no manager discretion.direxion.com
• A multi-billion-dollar fund that trades very actively, which matters for an instrument designed to be entered and exited inside a single session.
• Trading since 2010, through several full chip cycles. That is a long run for a 3x product, and one of the stronger setups in its leveraged peer group.

• TECL One lever on the whole S&P 500 tech sleeve: every GICS technology name in the 500, with caps on the biggest weights, so software, hardware and chips in one ticket.spglobal.com
• Costs 0.87% net of a waiver through September 1, 2027 (0.94% gross), below the 3x category median. Fee drag matters on exposure meant to be held in short bursts.
• Listed since 2008 and among the more actively traded 3x funds, with a mirror-image bear fund (TECS) on the identical index if you want the other side of the trade.direxion.com
• A multi-billion-dollar fund that stands among the stronger builds in a crowded 3x field on cost and staying power.

Worth knowing

• SOXL The 3x target applies to one day only. Daily reset plus compounding means multi-day results can diverge sharply from 3x the index, and choppy markets erode value.direxion.com
• Semiconductors already swing hard. Tripling the daily move magnifies down days exactly as much as up days, so losses can pile up fast.
• Roughly 40 stocks in a single US industry. No diversification cushion here, and the index itself has been renamed once (to the NYSE Semiconductor Index in 2023).sec.gov

• TECL Direxion is blunt: over periods longer than a day, results can diverge from 300% of the index's cumulative move, and volatility widens the gap. Needs daily attention.direxion.comdirexion.com 2
• Triple exposure cuts both ways, so a rough day for tech lands three times as hard. The index caps its largest weights, but the sector still leans on a handful of megacaps.spglobal.com
• Cheaper 3x options sit in the same category: SOXL at 0.75% and TQQQ at 0.78%, each net of fee waivers running through September 1, 2027 and September 30, 2027.

Full SOXL profile⁠

Full TECL profile⁠