The Direxion Daily Semiconductor Bull 3X Shares (SOXL) ETF gained 460.92% over the past year, far exceeding the 126.59% rise of its underlying semiconductor index due to daily compounding in a trending market. However, recent volatility showed the risks of leveraged ETFs, with SOXL dropping 22.75% in one month despite a smaller 4.26% fall in the index, illustrating how daily resets can amplify losses. Retail investors are bullish on SOXL, but options traders hedge with puts, signaling caution. Key risks include market volatility spikes and concentrated holdings in major chipmakers, with upcoming policy and options expiration dates as important events to watch.
Semiconductor ETFs surged on Tuesday following Bank of America's analyst Vivek Arya reaffirming a Buy rating and $1,550 price target on Micron Technology, sparking a rebound in the AI-memory sector after a recent tariff-driven selloff. Micron's stock...
STARTRADER is expanding its CFD offerings with 31 new US Share and ETF CFDs available from early August. These new instruments cover companies and funds in semiconductors, AI infrastructure, optical networking, and nuclear energy, reflecting growing ...
