Comparison of SOXL and SSO: SOXL offers 3x leverage focused on the semiconductor sector, resulting in higher risk and volatility compared to SSO, which provides 2x leverage on the broader S&P 500, leading to more diversification and stability.
Performance Metrics: Despite SOXL having a lower expense ratio, it has experienced a significantly deeper max drawdown of -90.46% over five years compared to SSO's -46.73%, indicating greater risk for investors.
Investment Strategy: Both ETFs are designed for short-term traders seeking magnified daily returns, but SOXL's concentrated approach in technology hardware limits diversification, while SSO spreads risk across multiple sectors.
Long-term Considerations: The daily leverage reset feature in both ETFs can affect long-term compounding, making them more suitable for short-term investments rather than long-term holds.
Wall Street analysts forecast SOXL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SOXL is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast SOXL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SOXL is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
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0 Sell
Current: 63.480
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Current: 63.480
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
