Leveraged semiconductor ETF SOXL surges 460% in a year, showing extreme gains and risks of daily resets.

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.