$iShares Semiconductor ETF(SOX

$iShares Semiconductor ETF(SOXX)$ $Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ $Direxion Daily Semiconductors Bear 3x Shares(SOXS)$ SOXL has dropped 75% from its high of $302. Since it launched in March 2010, there have been two major pre-COVID drawdowns where SOXL fell 70% or more, or came very close.

Here's how buying at extreme drawdown points performed over the following 5-year windows:

1. 2011 European Debt / Tech Correction

SOXL fell roughly 73% between April 2011 and October 2011 on European sovereign debt concerns and a global growth slowdown. Buying near the October 2011 bottom produced a 5-year return of about +350% to +400%.

2. 2018 Trade War and Rate-Hike Selloff

SOXL dropped around 63% between March 2018 and December 2018 during US-China trade tensions and Fed rate hikes. Buying near the December 2018 trough led to a 5-year gain of over +500%.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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