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Should You Invest in the Invesco PHLX Semiconductor ETF (SOXQ)?
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The Invesco PHLX Semiconductor ETF (SOXQ - Free Report) was launched on 06/11/2021, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Semiconductors segment of the equity market.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Semiconductors is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $501.95 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Semiconductors segment of the equity market. SOXQ seeks to match the performance of the PHLX SEMICONDUCTOR SECTOR INDEX before fees and expenses.
The PHLX Semiconductor Sector Index measures the performance of the 30 largest U.S.-listed securities of companies engaged in the semiconductor business.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.19%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.68%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Nvidia Corp (NVDA - Free Report) accounts for about 14.04% of total assets, followed by Broadcom Inc (AVGO - Free Report) and Advanced Micro Devices Inc (AMD - Free Report) .
The top 10 holdings account for about 62.27% of total assets under management.
Performance and Risk
So far this year, SOXQ has added about 23.33%, and it's up approximately 39.48% in the last one year (as of 12/05/2024). During this past 52-week period, the fund has traded between $28.78 and $46.54.
The ETF has a beta of 1.51 and standard deviation of 36.09% for the trailing three-year period. With about 30 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco PHLX Semiconductor ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SOXQ is an outstanding option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares Semiconductor ETF (SOXX - Free Report) tracks PHLX SOX Semiconductor Sector Index and the VanEck Semiconductor ETF (SMH - Free Report) tracks MVIS US Listed Semiconductor 25 Index. IShares Semiconductor ETF has $14.66 billion in assets, VanEck Semiconductor ETF has $25.17 billion. SOXX has an expense ratio of 0.35% and SMH charges 0.35%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the Invesco PHLX Semiconductor ETF (SOXQ)?
The Invesco PHLX Semiconductor ETF (SOXQ - Free Report) was launched on 06/11/2021, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Semiconductors segment of the equity market.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Semiconductors is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $501.95 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Semiconductors segment of the equity market. SOXQ seeks to match the performance of the PHLX SEMICONDUCTOR SECTOR INDEX before fees and expenses.
The PHLX Semiconductor Sector Index measures the performance of the 30 largest U.S.-listed securities of companies engaged in the semiconductor business.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.19%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.68%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Nvidia Corp (NVDA - Free Report) accounts for about 14.04% of total assets, followed by Broadcom Inc (AVGO - Free Report) and Advanced Micro Devices Inc (AMD - Free Report) .
The top 10 holdings account for about 62.27% of total assets under management.
Performance and Risk
So far this year, SOXQ has added about 23.33%, and it's up approximately 39.48% in the last one year (as of 12/05/2024). During this past 52-week period, the fund has traded between $28.78 and $46.54.
The ETF has a beta of 1.51 and standard deviation of 36.09% for the trailing three-year period. With about 30 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco PHLX Semiconductor ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SOXQ is an outstanding option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares Semiconductor ETF (SOXX - Free Report) tracks PHLX SOX Semiconductor Sector Index and the VanEck Semiconductor ETF (SMH - Free Report) tracks MVIS US Listed Semiconductor 25 Index. IShares Semiconductor ETF has $14.66 billion in assets, VanEck Semiconductor ETF has $25.17 billion. SOXX has an expense ratio of 0.35% and SMH charges 0.35%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.