SOXL vs SMH: semiconductor ETF drawdowns compared

Bottom line: SOXL fell deeper and remains farther below its peak

Using FinScope USD data as of 2026-07-08, SOXL had an observed all-time maximum drawdown of -90.5%, versus -85.9% for SMH. SOXL’s worst drawdown was about 4.5 percentage points deeper. That gap may look modest on paper, but a -90.5% drawdown means a position bought at the observed peak was worth only about 9.5% of that peak value at the trough.

The current decline from peak shows an even wider practical gap. SOXL is -41.9% below its prior high, while SMH is -11.3% below its own peak. Even when investors are looking at the same semiconductor cycle, a 3x leveraged ETF can remain much farther from recovery.

There is an important comparison caveat. SOXL data begins on 2010-03-11, while SMH data begins on 2000-06-05. SMH’s worst observed drawdown runs from the early-2000s peak into the global-financial-crisis trough, while SOXL’s worst drawdown came from late 2021 to October 2022. The two funds also are not simply the same portfolio with different leverage. This article compares their observed FinScope drawdown and recovery data through the same latest date.

Data comparison

What the numbers mean

SOXL’s -90.5% maximum drawdown means that a position bought at the observed peak had only about 9.5% of its peak value left at the trough. The move from the 2021-12-27 peak to the 2022-10-14 trough took 291 days, and the recovery to the prior peak took 1,230 days. Even when the semiconductor cycle rebounds, recovering a leveraged ETF drawdown can be a separate challenge.

SMH is not a low-drawdown ETF either. Its observed maximum drawdown was -85.9%, leaving only about 14.1% of peak value at the trough. But SMH’s worst span was much longer: from the 2000-06-21 peak to the 2008-11-20 trough, it lasted 3,074 days. SOXL’s worst drawdown was shorter and sharper; SMH’s worst drawdown was a long semiconductor bear market.

The latest current-decline numbers make the difference easier to feel. SMH is -11.3% below its peak, while SOXL is still -41.9% below its own peak. For a leveraged ETF investor, “the sector went up” and “my product recovered its old high” are not the same statement.

What matters in a 3x ETF

SOXL seeks roughly three times the daily move of semiconductor equities. The key word is daily. Over multiple days, the fund resets exposure, and the path of returns matters. In volatile markets, repeated losses and partial rebounds can leave the leveraged ETF much farther from its prior high than the unlevered fund.

That structure makes SOXL less like a simple long-term substitute for SMH and more like a product where direction, timing, and holding period matter a lot. It can rise sharply in a strong trend, but a large drawdown creates a much heavier recovery hurdle.

The investor takeaway

• Drawdown depth: In the observed data, SOXL’s maximum drawdown was about 4.5 percentage points deeper than SMH’s.
• Current position: On the latest data date, SOXL was -41.9% below its peak versus -11.3% for SMH.
• Recovery profile: SOXL did recover its prior peak after 1,230 days, but the investor had to sit through a very deep drawdown. SMH’s worst period reflects an older, long semiconductor downturn.
• Product structure: SOXL is not just “more SMH.” Daily leverage, rebalancing, and volatility drag all need to be part of the risk lens.

How to view it in FinScope

Open the SOXL page and SMH page to inspect current decline from peak, all-time maximum drawdown, trough dates, and recovery status. If you want the definitions first, start with What is maximum drawdown?, What is recovery time?, and Leveraged ETF drawdown risk. Korean investors may also want to read How FX changes drawdowns.