What Is the SOXQ ETF? A Complete Guide to Returns, Fees, Holdings, and Alternative ETFs
A low-fee ETF that tracks the PHLX Semiconductor Index, offering concentrated exposure to the core companies leading the global semiconductor market.
SubscribeWhat Is This ETF?
It replicates the PHLX Semiconductor Sector Index, also known as the Philadelphia Semiconductor Index, on a one-to-one basis. It selects roughly the top 30 companies that make up the industry ecosystem, including semiconductor design and equipment, and holds them on a market-cap-weighted basis.
It suits investors who are convinced of the structural growth of AI infrastructure and the semiconductor industry and want cost-efficient sector exposure.
It is a passively managed (index-tracking) ETF launched by Invesco in 2021.
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | PHLX Semiconductor Sector Index |
| Management Style | Passive (sector index tracking) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Quarterly |
| Expense Ratio | 0.19% |
It applies a capping method that substantially limits the weights of the five largest holdings by market cap and spreads the remainder evenly. It is designed to prevent any single stock from dominating while still reflecting the performance of the semiconductor sector as a whole.
- One of the lowest expense ratios among semiconductor sector ETFs
- Carries on the legitimacy of the PHLX Semiconductor Index
Size and Costs
Assets under management (AUM) stand at $3.0B, and the expense ratio is 0.19% per year.
It tracks the same index as SOXX, shown in the table, and offers a portfolio far more concentrated in semiconductor companies than broad IT sector ETFs such as VGT or XLK. Its expense ratio is also set considerably lower than those products, which can be an advantage in terms of cost for long-term investors.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeDriven by surging demand for artificial intelligence (AI), major semiconductor companies led by Nvidia have posted strong gains, pulling the sector's returns higher. However, the sector is highly sensitive to industry volatility tied to interest rate changes and the economic cycle.
Funds looking to strengthen tech-focused portfolios continue to flow in. In particular, fee-sensitive retail investors are seen switching from existing higher-fee products.
Strengths and Weaknesses
It lets investors capture the structural growth of the semiconductor market at a low cost, but they should be wary of the sector's inherently high volatility and its concentration in a single industry.
💪 Key Strengths
⚠️ Points of Caution
Alternative ETFs and Related Products
SOXX, shown in the table, tracks the same index and is larger in size, but its expense ratio is somewhat higher. SMH applies market-cap weighting strictly, so its top holdings carry much larger weights, making it suitable especially for investors who want to maximize Nvidia exposure. For portfolio diversification, you can also consider the equal-weighted XSD or the multi-factor PSI.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VGT | Vanguard Information Technology ETF | $116.96 | -4.3% | $151.4B | 0.09% | 0.4% | +18.3% |
 XLK | State Street Technology Select Sector SPDR ETF | $179.51 | -4.9% | $124.7B | 0.08% | 0.47% | +19.5% |
 SOXX | iShares Semiconductor ETF | $471.51 | -8.2% | $47.6B | 0.33% | 0.27% | +54.4% |
 IYW | iShares U.S. Technology ETF | $242.67 | -4.3% | $24.9B | 0.37% | 0.1% | +16.8% |
 FTEC | Fidelity MSCI Information Technology Index ETF | $279.03 | -4.3% | $21.7B | 0.08% | 0.4% | +18.3% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| NVDA | NVIDIA Corp | 0.33% | $204.64 | -4.2% | $4.93T | 25.9 | 0.38% |
| MU | Micron Technology Inc | 0.21% | $884.74 | -5.3% | $1.00T | 11.9 | 0.08% |
| AVGO | Broadcom Inc | 0.25% | $326.08 | -5.5% | $1.56T | 41.6 | 0.8% |
| AMD | Advanced Micro Devices Inc | 0.13% | $504.80 | -10.9% | $824.1B | 129.6 | - |
Investor Checkpoints
Here is a key checklist to review before investing in SOXQ. It is advisable to make your investment decision by comparing where the semiconductor cycle currently stands with your own risk tolerance.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 📉 Expense Ratio Comparison | Check annual operating costs versus competing ETFs | Low |
| 🏭 Downstream Industry Demand | Review the growth outlook of semiconductor demand sources such as AI and cloud | Needs review |
| 📊 Top Holding Concentration | Changes in top weights such as Nvidia and whether the cap is applied | Appropriate |
| 🔄 Rebalancing Policy | Check the replacement cycle and method for index constituents | In effect |
The semiconductor sector is highly sensitive to global geopolitical risks and supply chain issues, and the value of individual companies can swing sharply as technological advantages shift.
It is one economical option for investors who believe in the long-term growth of the semiconductor industry. For aggressive investors who can tolerate high volatility, it is an excellent product to run as a core tech-stock holding.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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