Why The Direxion Daily Semiconductor Bull 3X ETF Plunged Nearly 20% Today
It was a bad day for chip stocks.
Overview
Shares of the Direxion Daily Semiconductor Bull 3X ETF (NYSEMKT: SOXL) plunged 18.4% on Tuesday as of 2:10 p.m. EDT.
The SOXL, as its name suggests, offers three times the daily exposure to the semiconductor sector through a combination of swaps, individual holdings, and semiconductor-focused ETFs, achieving leveraged exposure to the 30 largest semiconductor stocks.
Details
The semiconductor sector is already one of the most volatile in the stock market, so when you add three times the leverage, it's possible to get days when the ETF moves 20% or more.
Source
Originally published at www.fool.com.
Related Articles
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.