ETF Comparison

SPXL vs SPY: What 3x Daily Leverage Actually Changes

A head-to-head of Direxion Daily S&P500 Bull 3X Shares and the SPDR S&P 500 ETF Trust covering daily reset, cost, and why they differ.

Data updated September 21, 2026

Best for

SPXLInvestors who want broad equity exposure.
SPYInvestors who want simple, diversified core exposure in one low-cost fund.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings.

SPXL has outpaced SPY over the trailing twelve months, posting a 38.95% total return against 17.25%. The lead holds up over 10 years too: SPXL has compounded at 30.10% a year, against 15.55% for SPY. SPY has been the steadier holding, though — annualized volatility of 15.3% against 44.5% for SPXL. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
Symbol	YTD	1Y	3Y	5Y	10Y	Since Nov 2008	Volatility	Sharpe	Sortino	Max drawdown
SPXL	33.47%	38.95%	55.20%	22.50%	30.10%	28.63%	44.5%	0.89	1.26	-48.9%
SPY	14.11%	17.25%	22.96%	13.76%	15.55%	14.44%	15.3%	1.07	1.56	-18.8%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 21, 2026. YTD and 1Y are cumulative; windows of one year or longer are annualized. “Since Nov 2008” measures every fund from November 5, 2008 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
Metric	SPXL	SPY
Full name	Direxion Daily S&P500 Bull 3X Shares	SPDR S&P 500 ETF Trust
Issuer	Direxion	State Street
Last Close	$294.55 as of September 21, 2026	$773.50 as of September 21, 2026
Distribution rate	0.71%	0.98%
Distribution Safety Score™	79	100
Safety-Adjusted Yield	0.56%	0.98%
Expense ratio	0.84%	0.0945%
AUM	$6.75B	$783B
Distribution frequency	Quarterly	Quarterly
Underlying index	—	S&P 500 Index
Objective	—	Track the S&P 500 Index before expenses.
Asset class	Equity	Equity
Inception date	11/05/2008	01/22/1993
Beta	3.12	1.0
Last dividend	$0.523	$1.8888
Ex-dividend date	06/23/2026	09/18/2026

Bottom lineChoose SPXL if you want broad equity exposure. Choose SPY if you want simple, diversified core exposure in one low-cost fund.

SPXL vs SPY: 3x daily or the S&P 500?

SPY is the index. SPXL seeks three times the daily move and resets. It is a trading vehicle, not a core holding.

	SPXL	SPY
What you own	3x daily S&P 500	S&P 500 Index
Expense ratio	0.84%	0.0945%
Daily reset	Yes	No

How the risk works

Read this before the income numbers below: the strategy mechanics on this page shape what those payouts can cost you.

Daily leverage reset. SPXL targets a multiple of the index's DAILY move, resetting every session. Over weeks and months the compounding of daily resets (volatility decay) can drag returns far below the stated multiple, especially in choppy markets — and losses are magnified the same way gains are.

Learn the mechanics: Why daily-reset leverage decays

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Direxion

ETFs132

Total AUM$62.7B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Direxion is known for offering leveraged and inverse ETFs that enable investors to amplify or hedge market exposure across various asset classes and market segments. The firm's fund lineup focuses primarily on income-generating strategies and leveraged products, featuring both daily leveraged long positions and inverse (bearish) funds designed for tactical trading and hedging purposes. The issuer maintains a broad range of tickers covering sectors, commodities, cryptocurrencies, and equity indices, appealing to active traders and investors seeking non-traditional exposure management tools.

See our curated list of related YouTube videos on SPXL.

See all Direxion ETFs

State Street

ETFs179

Total AUM$2096B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on SPY.

See all State Street ETFs

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Quick verdict

SPXL (Direxion Daily S&P500 Bull 3X Shares) and SPY (SPDR S&P 500 ETF Trust) are both quarterly-pay dividend ETFs, but they take different approaches.

SPY offers the higher yield at 0.98% vs 0.71% for SPXL. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

SPY is cheaper with an expense ratio of 0.0945% compared to 0.84%.

SPY is the larger fund by assets ($783B), but assets alone do not establish trading costs or liquidity.

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Deep dive

Yield & income

On a $10,000 investment, SPXL would generate roughly $5.92/month, while SPY would produce $8.17/month, at current distribution rates. Both pay quarterly distributions.

SPXL yield0.71%

SPY yield0.98%

Monthly diff on $10K$2.25

Cost & efficiency

Over 10 years on $10,000, SPXL would cost approximately $840 in fees vs $95 for SPY (simplified, not compounded). The $745.50 difference may be offset by yield or performance.

SPXL ER0.84%

SPY ER0.0945%

Strategy & risk

SPXL is an ETF built around a leveraged/inverse strategy, while SPY tracks S&P 500 Index with a large cap approach. Beta is 3.12 for SPXL and 1.0 for SPY, making SPY the less volatile of the two by this measure.

SPXL beta3.12

SPY beta1.0

Fund details

SPXL is managed by Direxion (launched 11/05/2008) with $6.75B in assets. SPY is managed by State Street (launched 01/22/1993) with $783B in assets.

SPXL AUM$6.75B

SPY AUM$783B

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Frequently asked questions

What is the difference between SPXL and SPY?

SPY (SPDR S&P 500 ETF Trust) tracks the S&P 500 once. SPXL (Direxion Daily S&P500 Bull 3X Shares) seeks three times the index's daily move, then resets. That daily reset is the product. SPXL costs 0.84% against 0.0945%. Distributions are 0.71% and 0.98% as of September 2026. SPXL is a trading vehicle, not a substitute for SPY.

What is the current distribution rate for SPXL and SPY?

SPXL currently distributes 0.71% and SPY 0.98%, based on fund data updated September 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is SPXL or SPY better for dividend income?

It depends on your goals. SPY currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

Can I hold both SPXL and SPY?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is SPXL or SPY safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — SPY scores 100, SPXL scores 79, so SPY's payout currently looks the more resilient of the two. SPY has also shown lower price volatility (beta 1.00 vs 3.12 for SPXL). No score makes an investment risk-free — treat this as a screening signal, not a guarantee, and the leverage, options-income, or crypto caveats flagged on this page apply regardless of score.

Which has lower fees, SPXL or SPY?

SPXL has an expense ratio of 0.84% while SPY charges 0.0945%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in SPXL vs SPY generate?

At current rates, $10,000 in SPXL would generate roughly $5.92 per month ($71.00 annually). The same in SPY would produce about $8.17 per month ($98.00 annually).

Which has performed better historically, SPXL or SPY?

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SPXL vs SPY — at a glance

Generated September 19, 2026.

Overview

SPXL and SPY both track the S&P 500, but they are structurally different animals. SPY is a standard large-cap index ETF designed to move in line with the market. SPXL is a 3x leveraged daily reset ETF — it aims to deliver three times the daily return of the S&P 500, which makes it a tactical trading vehicle, not a buy-and-hold equity substitute.

How they differ

The single biggest difference is leverage. SPXL uses financial leverage to amplify daily movements by a factor of 3, while SPY tracks the index 1:1. This means SPXL has a 3.12 beta versus SPY's 1.0, but that leverage comes with drag: SPXL's 0.84% expense ratio is roughly 9 times SPY's 0.0945%, and the daily rebalancing mechanic erodes returns over longer holding periods in sideways or volatile markets — a phenomenon called "decay." Second, the funds differ dramatically in size and cost of ownership.

Who each is best for

SPY: Fits investors building a core equity allocation who want minimal costs, maximum liquidity, and direct market-cap-weighted S&P 500 exposure over multi-year holding periods.

SPXL: Designed for active traders and tactical allocators seeking short-term directional bets — those with high risk tolerance and a time horizon measured in days to weeks rather than years.

Key risks to know

Leveraged decay in ranging markets. SPXL rebalances daily to maintain 3x exposure. In sideways or choppy markets, the compounding effect of daily resets causes SPXL to lag 3x the index's total return over holding periods longer than a few days, eroding capital even when the underlying index is flat or slightly positive.

Volatility amplification in SPXL during drawdowns. With a 3.12, a 10% market correction becomes a ~30% loss in SPXL before any rebalancing effects are factored in. Multi-day or multi-week downturns can inflict severe principal loss.

Return-of-capital treatment in SPXL distributions. Portions of SPXL's quarterly payout may be treated as return of capital rather than income, complicating tax reporting and gradually reducing the fund's NAV if distributions exceed underlying gains.

Bottom line

SPY is a core holding vehicle — low-cost, stable, and designed for long-term index exposure. SPXL is a trading tool for near-term directional bets, not a substitute for equity allocation. The leverage works powerfully in sharp rallies but accelerates losses in reversals and erodes returns in choppy consolidation. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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