A leveraged ETF that most financial advisors would tell you to avoid just outtraded the two most recognizable companies on the planet. Combined.
On June 5, the Direxion Daily Semiconductor Bull 3X Shares ETF, better known by its ticker SOXL, recorded trading volume that exceeded both Apple and Amazon put together. Bloomberg ETF analyst Eric Balchunas flagged the milestone, calling it a first for actively traded ETFs.
What happened and why it matters
SOXL’s daily volume hit approximately 104 to 108 million shares, a sharp jump from its typical range of roughly 55 to 77 million shares. Half of the most traded ETFs that day were semiconductor-related.
Here’s the thing about SOXL: it seeks to deliver 300% of the daily return of the ICE Semiconductor Index. In English, if chip stocks go up 1% in a day, SOXL aims to go up 3%. If they drop 1%, SOXL drops 3%. It was never designed to be held for more than a single trading session.
