In a historic move for Canadian investors, LongPoint Asset Management, in partnership with Solactive, has launched the country’s first triple-leveraged exchange-traded funds (ETFs) focused on the booming semiconductor sector.
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Mark Raes, Chief Product Officer of LongPoint ETFs
The MegaLong (3X) US Semiconductors Daily Leveraged Alternative ETF (SOXU) and MegaShort (-3X) US Semiconductors Daily Leveraged Alternative ETF (SOXD) began trading on the Toronto Stock Exchange (TSX) on May 23, 2025. These ETFs, which track the Solactive United States Semiconductors 30 Capped Index, provide investors with amplified exposure—both bullish and bearish—to a sector critical to global technological innovation.
Semiconductors: The Engine of Modern Technology
The semiconductor industry, often dubbed the “brain” of modern electronics, continues to experience explosive growth. Recent data shows global semiconductor revenue reached $167.7 billion in Q1 2025, an 18.8% increase compared to the same period in 2024. This surge is fueled by rising demand in sectors like artificial intelligence, cloud computing, automotive, and consumer electronics, particularly driven by the Americas.
The sector’s momentum aligns with trends in the Canadian ETF market, which saw record inflows of $13.6 billion CAD in March 2025, including $393 million into leveraged and inverse ETFs. This signals growing investor interest in sophisticated tools to capitalize on volatility and sectoral trends.
The ETFs: Amplified Opportunities for Experienced Traders
The new ETFs offer distinct strategies:
SOXU aims to deliver triple the daily returns of the Solactive United States Semiconductors 30 Capped Index.
SOXD seeks to provide triple the inverse daily returns, allowing investors to hedge or speculate on potential sector declines.
These products are designed for active and institutional traders seeking short-term tactical positions. However, leveraged ETFs carry significant risks due to daily rebalancing, making them suitable primarily for experienced investors comfortable with volatility.
The Core Strategy: The Solactive Index
The Solactive United States Semiconductors 30 Capped Index, underpinning the ETFs, tracks the 30 largest U.S. semiconductor companies selected based on NAICS codes 334413 (semiconductor manufacturing) and 333242 (semiconductor machinery manufacturing). Components, drawn from Solactive’s U.S. equity universe, are weighted by free-float market capitalization, with a 7.5% cap for the top five companies and 4.5% for others, ensuring diversification while concentrating on market leaders.
Strategic Collaboration: Innovation and Agility
Steffen Scheuble, CEO of Solactive, emphasized the partnership’s value: “Launching Canada’s first triple-leveraged semiconductor ETFs is a pivotal milestone for investors. Our index reflects the sector’s dynamism, and we’re committed to crafting tailored solutions that meet market demands.”
Mark Raes, Chief Product Officer of LongPoint ETFs, highlighted Solactive’s role: “Solactive’s agility and client-centric approach enabled us to bring these ETFs to market swiftly. As Canada’s ETF landscape evolves, we aim to provide tools for capitalizing on strategic sectors like semiconductors.”
A New Frontier for Canadian Investors
The debut of SOXU and SOXD comes at a critical juncture. Semiconductors are not only central to innovation but increasingly viewed as strategic assets in global supply chain realignments. For Canadian investors, these ETFs unlock access to a sector traditionally dominated by U.S. markets, offering financial leverage previously rare domestically.
With accelerating innovation and shifting markets, LongPoint’s new ETFs underscore the growing sophistication of Canada’s financial landscape. By merging advanced indices with demand for precision tools, the LongPoint-Solactive collaboration may set a precedent for future niche ETF launches.
Source: ETFWorld.co.uk
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