# Direxion Chip ETF Plummets 14% in Selloff

> Semiconductor ETF drops 14% as chip sector faces sharp selloff.
- Title: Direxion Chip ETF Plummets 14% in Selloff · Yahoo Finance
- Summary: Semiconductor ETF drops 14% as chip sector faces sharp selloff. Direxion Semiconductor Bull ETF fell 14% after semiconductor stocks dropped 18% in summer…
- Keywords: direxion, soxl, semiconductor, nvidia, soxx, nyse, leverage, business, finance, Chip, ETF, Plummets
- Source: Yahoo Finance — https://finance.yahoo.com/markets/stocks/articles/direxion-semiconductor-bull-etf-drops-150500906.html
- Published: 2026-09-16T15:05:00+00:00
- Read time: 1 min
- Topics: direxion, soxl, semiconductor, nvidia, soxx, nyse, leverage, business, finance
## Risk Tolerance Matters
New investors should assess risk tolerance before choosing leveraged ETFs.
## Leveraged ETFs Amplify Volatility
Direxion Semiconductor Bull 3X ETF aims for 300% daily performance of semiconductor index.
## Chip Stocks Plunge
Semiconductor stocks dropped 18% this summer as chip sector faces selloff.
## Leveraged ETFs Reset Daily
Leveraged ETFs reset daily to maintain 300% performance target, risking losses.
## Short-Term Risk
Holding leveraged ETFs for weeks or months can lead to significant losses.
## Stock Advisor Warning
Stock Advisor did not recommend Direxion ETF for investors seeking long-term growth.
## What Happens Next
Investors should consider traditional stocks or ETFs instead of leveraged products.
## Key takeaway

Direxion Semiconductor Bull ETF fell 14% after semiconductor stocks dropped 18% in summer, warning leveraged ETFs risk severe losses if chip stocks decline.