SSO vs SOXL: Leveraging the Market or Leveraging Momentum

ProShares Ultra S&P500 (SSO) and Direxion Daily Semiconductor Bull 3X Shares (SOXL) both use daily leverage resets, but SOXL targets triple exposure to semiconductors while SSO delivers double exposure to the entire S&P 500—resulting in dramatically different risk and sector profiles.Both SSO and SOXL are leveraged exchange-traded funds designed for tactical traders who want amplified exposure to equity markets over very short periods. SSO magnifies daily S&P 500 moves twofold, offering broad-market leverage, while SOXL seeks three-times the daily performance of the NYSE Semiconductor Index, zeroing in on the volatile semiconductor sector. Here’s how they compare on cost, recent returns, risk, and portfolio makeup.Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool