SOXL vs TYD

SOXLADirexion Daily Semiconductor Bull 3X ETF

TYDDDirexion Daily 7-10 Year Treasury 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.

TYD Leveraged Treasury trading mostly crowds the long end. TYD aims for 300% of the daily move in the ICE U.S. Treasury 7-10 Year Bond Index instead: a 3x handle on the belly of the curve, running since 2009.

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.

TYD The fund seeks daily investment results equal to 300% of the performance of the ICE U.S. Treasury 7-10 Year Bond Index, before fees and expenses.

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.

• TYD A rare 3x handle on the belly of the curve: 300% of the daily move in the ICE U.S. Treasury 7-10 Year Bond Index, while most leveraged bond action sits at the 20-year end.direxion.com
• Trading since 2009, so the daily-reset machinery has run through QE, the taper tantrum and the 2022 rate shock in full public view.
• Exposure comes from swaps and futures tied to an all-Treasury index, so no corporate credit sits underneath. Distributions go out quarterly.sec.gov
• Direxion runs a mirror-image bear fund on the same index, so the same 7-10 year view can be expressed in either direction.direxion.com

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

• TYD Fee runs 1.07% net of a waiver through September 1, 2027 (1.08% gross), above the typical 3x fund and above sibling TMF, at 0.90% net of a waiver through September 1, 2027.
• Leverage resets every day. Hold longer than a day and compounding takes over, so results can drift well away from 3x the index move over that stretch, especially in choppy markets.direxion.com
• One of the smaller, more lightly traded corners of the leveraged shelf, which can mean wider spreads and more care needed when getting in or out.

Full SOXL profile⁠

Full TYD profile⁠