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Is iShares Semiconductor ETF (SOXX) a Strong ETF Right Now?

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The iShares Semiconductor ETF (SOXX - Free Report) made its debut on 07/10/2001, and is a smart beta exchange traded fund that provides broad exposure to the Technology ETFs category of the market.

What Are Smart Beta ETFs?

For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.

Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.

However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.

Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund Sponsor & Index

The fund is managed by Blackrock. SOXX has been able to amass assets over $17.12 billion, making it one of the largest ETFs in the Technology ETFs. This particular fund seeks to match the performance of the PHLX SOX Semiconductor Sector Index before fees and expenses.

The ICE Semiconductor Index measures the performance of U.S. traded securities of companies engaged in the semiconductor business.

Cost & Other Expenses

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 SOXX are 0.34%, which makes it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 0.54%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

For SOXX, it has heaviest allocation in the Information Technology sector --about 100% of the portfolio.

When you look at individual holdings, Advanced Micro Devices Inc (AMD) accounts for about 9.56% of the fund's total assets, followed by Broadcom Inc (AVGO) and Nvidia Corp (NVDA).

SOXX's top 10 holdings account for about 60.36% of its total assets under management.

Performance and Risk

The ETF has added roughly 42.73% so far this year and it's up approximately 38.26% in the last one year (as of 12/05/2025). In the past 52-week period, it has traded between $154.86 and $309.60

The ETF has a beta of 1.52 and standard deviation of 34.15% for the trailing three-year period, making it a high risk choice in the space. With about 35 holdings, it has more concentrated exposure than peers .

Alternatives

iShares Semiconductor ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well.

State Street SPDR S&P Semiconductor ETF (XSD) tracks S&P Semiconductor Select Industry Index and the VanEck Semiconductor ETF (SMH) tracks MVIS US Listed Semiconductor 25 Index. State Street SPDR S&P Semiconductor ETF has $1.68 billion in assets, VanEck Semiconductor ETF has $36.55 billion. XSD has an expense ratio of 0.35% and SMH changes 0.35%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs

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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