Industry Revenues:

1. Semiconductor Industry: approx. 70%
2. Technology and Electronics Sector: approx. 20%
3. Other Industries (e.g. Automotive, Telecommunications): approx. 10%

TOP 3 Markets:

1. USA: approx. 50%
2. China: approx. 25%
3. Europe: approx. 15%

The Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) focuses heavily on the semiconductor industry, which accounts for the majority of revenues. This sector is crucial for the production of microchips and other electronic components used in a variety of technologies.

The USA is the largest market, attributed to the high concentration of technology companies and innovations in this sector. China follows as the second largest market, being a significant producer and consumer of semiconductor products. Europe ranks third, with demand from the automotive and telecommunications industries playing a key role.

Direxion Shares ETF Trust - Direxion Daily Semiconductor Bull 3X Shares (ARCA:SOXL) is an exchange-traded fund (ETF) and not a company that produces physical products.

This ETF aims to replicate three times the daily performance of the PHLX Semiconductor Sector Index. It invests in a variety of companies within the semiconductor industry that actually undertake the production of semiconductor products.

Since SOXL does not produce any products itself, there are no production sites that can be attributed to the ETF. Instead, it invests in companies that operate globally and manufacture their products in various countries.

Strategy for Future Growth: Leverage and Short-Term Market Movements

The Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) pursues an aggressive investment strategy aiming to achieve three times the daily performance of the PHLX Semiconductor Sector Index. This strategy is based on utilizing leverage products to exploit short-term market movements in the semiconductor sector.

The ETF targets experienced investors seeking to benefit from short-term price gains in the semiconductor sector. The strategy involves high risk as leverage can amplify both gains and losses. Therefore, the ETF is not suitable for long-term investments but rather for short-term trading strategies.

Future growth is determined by the volatility and performance of the underlying semiconductor sector, influenced by technological innovations and demand for semiconductor products.

Main raw materials: Silicon, Copper, Gold, Aluminum

Countries of origin:

• Silicon: China, USA
• Copper: Chile, Peru
• Gold: South Africa, Australia
• Aluminum: China, Russia

The Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) invests in companies in the semiconductor industry that rely on various raw materials. Silicon is the most important raw material for the production of semiconductor chips and is mainly imported from China and the USA. Copper, used for circuitry in chips, primarily comes from Chile and Peru.

Gold and Aluminum are also essential materials for semiconductor production. Gold is used for making connections and contacts in chips and is mainly sourced from South Africa and Australia. Aluminum, needed for casings and other components, is mainly imported from China and Russia.

The dependence on these raw materials makes the semiconductor industry vulnerable to fluctuations in global supply chains and raw material prices.

Current Price: $25.34 (2025)
Volatility: High
Industry Growth: 8.9% (2024)

The Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) is a leveraged ETF that aims to achieve three times the daily return of the PHLX Semiconductor Sector Index. The competitive advantage of this ETF lies in its ability to capitalize on short-term market movements in the semiconductor sector, making it attractive to speculative investors.

The high volatility of the ETF presents both opportunities and risks as it reacts strongly to market movements. This can be advantageous in a growing semiconductor market, which saw a growth of 8.9% in 2024. However, the leverage also increases the risk of losses in case of negative market movements.

Overall, the ETF offers a competitive advantage for investors looking to capitalize on short-term market opportunities in the semiconductor sector, but it is less suitable for risk-averse investors or long-term investments.

Institutional Investor Share: Estimated at around 60% (2025)

Insider Buys/Sells: No significant insider transactions reported (2025)

The institutional investor share in ETFs such as the Direxion Daily Semiconductor Bull 3X Shares is typically high, as such products are often used by institutional investors for hedging or speculation. The estimated share of 60% is based on historical data and typical industry patterns.

Insider transactions are less relevant for ETFs, as these funds do not represent direct company shares. Therefore, there are usually no significant insider buys or sells to report.

Market share of SOXL: Estimate not directly available (2025)

Top competitors in the leveraged semiconductor ETF space:

1. ProShares Ultra Semiconductor (USD): Estimate, approx. 30% (2025)
2. VanEck Vectors Semiconductor ETF (SMH): Estimate, approx. 25% (2025)
3. iShares PHLX Semiconductor ETF (SOXX): Estimate, approx. 20% (2025)
4. SPDR S&P Semiconductor ETF (XSD): Estimate, approx. 15% (2025)
5. Invesco Dynamic Semiconductors ETF (PSI): Estimate, approx. 10% (2025)

Moat of SOXL:

The Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) offers investors the opportunity to leverage three times the performance of the PHLX Semiconductor Sector Index. This leverage can be both an advantage and a risk, as it allows for high profits in times of rising prices but also increases the risk of loss.

Compared to its competitors, SOXL provides a significant advantage for risk-taking investors aiming for short-term gains through its leverage. This can be seen as a certain moat, as not all ETFs offer this leverage. However, this advantage is highly dependent on market volatility and can quickly turn into a disadvantage in unstable market phases.

Other ETFs, such as the VanEck Vectors Semiconductor ETF or the iShares PHLX Semiconductor ETF, offer a more stable, less volatile investment opportunity, which may be more attractive to conservative investors. These ETFs may have a better moat in terms of stability and long-term investment security.

Overall, the perceived moat heavily depends on the individual investment goals and risk tolerance of investors.

Market Development Semiconductor Industry: Growth of 8% annually (2023-2025) Technological Advances: Increased demand for semiconductors in AI and IoT

The Direxion Daily Semiconductor Bull 3X Shares (SOXL) is a leveraged ETF that aims to exceed the daily performance of the PHLX Semiconductor Sector Index by three times. This means that the ETF is particularly volatile and suitable for short-term trading strategies rather than long-term investments.

The semiconductor industry is experiencing strong growth driven by technological advances in areas such as Artificial Intelligence, Internet of Things, and 5G technologies. These trends could positively impact the ETF as they boost the demand for semiconductors.

However, investors should be aware of the risks associated with a leveraged ETF, as daily rebalancing and leverage can lead to significant losses, especially in volatile market phases. Therefore, investors should have a clear risk tolerance and a short-term perspective if they wish to invest in SOXL.

Dividend: No regular payout

The Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) typically does not pay regular dividends. This ETF is a leveraged fund that aims to achieve three times the daily return of the PHLX Semiconductor Sector Index.

Leveraged ETFs like SOXL are primarily designed for short-term trading strategies and not for long-term investments or regular income streams. Therefore, dividend payouts are uncommon and unreliable with such funds. Investors should focus on price movements and the volatility of the underlying index rather than on dividend payments.