SOXS -3x Direxion Daily Semiconductor Bear 3X ETF
SOXS
ETF -3x BEAR extremeDirexion Daily Semiconductor Bear 3X ETF
Realized return vs theoretical -3x Semiconductors
Pair counterpart found:
SOXL
(+3x bull, Direxion Daily Semiconductor Bull 3X ETF)
Shorting both legs of a daily-reset bull/bear pair captures combined decay drift over time. Theoretical "free money" — actual edge depends on borrow rates (often punitive on the bear leg) and assignment risk on hard-to-borrow products.
Other leveraged products tracking Semiconductors
| Symbol | Factor | Direction | Issuer | Name | Implied AUM | 30d Vol | Options |
|---|---|---|---|---|---|---|---|
| SOXL | +3x | BULL | Direxion | Direxion Daily Semiconductor Bull 3X ETF | — | 57,949,513 | |
| TSXU | +2x | BULL | Direxion | Direxion Daily Semiconductors Top 5 Bull 2X ETF | $15.7M | 29,343 | |
| USD | +2x | BULL | ProShares | ProShares Ultra Semiconductors | — | 1,094,888 | |
| SSG | -2x | BEAR | ProShares | ProShares UltraShort Semiconductors | — | 1,052,403 | |
| TSXD | -2x | BEAR | Direxion | Direxion Daily Semiconductors Top 5 Bear 2X ETF | — | 44,125 |
How SOXS works
SOXS targets -3x the daily return of Semiconductors — not the cumulative return over multi-day windows. The fund rebalances at the close each day using swaps or futures, which is what creates the volatility drag the chart above visualizes.
Mathematical headline: drag ≈ −0.5 × N × (N−1) × σ² per period. For a -3x product on an underlying with 25% annualized vol, expected annual drag is around 18.8%. Add expense ratio and the realized number is typically worse.
- Short-term tactical: daily and intraday holds are where these products were designed to live.
- Premium selling: options on SOXS carry very rich IV — see the quote page for IV rank and straddle pricing.
- Multi-day directional: works in strong trends; gets eaten alive in chop. Use the chart above to gauge the realized vs theoretical track record.