SOXL ETF dropped 23% in one day, revealing risks of leveraged semiconductor ETFs for long-term holders.

On June 23, 2026, the leveraged semiconductor ETF SOXL fell sharply by 23.06% in a single session, much more than its non-leveraged peers SOXX and SMH, which dropped around 7-8%. SOXL aims to deliver 3 times the daily performance of the semiconductor index but carries higher fees and suffers from volatility decay due to daily resets. Over five years, SOXL's returns only slightly outpaced SMH despite much higher risk and costs, making it less suitable for long-term holding. Investors should carefully consider these factors before holding SOXL beyond short-term trading.