The present invention relates to improved metal-oxide-semiconductor field effect transistor (MOSFET) devices with stress-inducing structures located at the source and drain (S/D) regions. Specifically, each MOSFET comprises source and drain regions located in a semiconductor substrate. Such source and drain regions comprise recesses with one or more sidewall surfaces that are slanted in relation to an upper surface of the semiconductor substrate. A stress-inducing dielectric layer is located over the slanted sidewall surfaces of the recesses at the source and drain regions. Such MOSFETs can be readily formed by crystallographic etching of the semiconductor substrate to form the recesses with the slanted sidewall surfaces, followed by deposition of a stress-inducing dielectric layer thereover.