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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 June 11, 2021, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Semiconductors segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient 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 $1.41 billion, making it one of the larger 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
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
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 0.37%.
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.
This ETF has heaviest allocation in the Information Technology sector -- about 100% of the portfolio.
Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 11.15% of total assets, followed by Broadcom Inc (AVGO) and Advanced Micro Devices Inc (AMD).
The top 10 holdings account for about 59.09% of total assets under management.
Performance and Risk
The ETF has added roughly 34.98% and is up about 150.22% so far this year and in the past one year (as of 04/20/2026), respectively. SOXQ has traded between $29.54 and $75.21 during this last 52-week period.
The ETF has a beta of 1.57 and standard deviation of 35.14% for the trailing three-year period. With about 32 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 excellent 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) tracks PHLX SOX Semiconductor Sector Index and the VanEck Semiconductor ETF (SMH) tracks MVIS US Listed Semiconductor 25 Index. iShares Semiconductor ETF has $27.60 billion in assets, VanEck Semiconductor ETF has $53.15 billion. SOXX has an expense ratio of 0.34%, 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 June 11, 2021, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Semiconductors segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient 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 $1.41 billion, making it one of the larger 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
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
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 0.37%.
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.
This ETF has heaviest allocation in the Information Technology sector -- about 100% of the portfolio.
Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 11.15% of total assets, followed by Broadcom Inc (AVGO) and Advanced Micro Devices Inc (AMD).The top 10 holdings account for about 59.09% of total assets under management.
Performance and Risk
The ETF has added roughly 34.98% and is up about 150.22% so far this year and in the past one year (as of 04/20/2026), respectively. SOXQ has traded between $29.54 and $75.21 during this last 52-week period.
The ETF has a beta of 1.57 and standard deviation of 35.14% for the trailing three-year period. With about 32 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 excellent 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) tracks PHLX SOX Semiconductor Sector Index and the VanEck Semiconductor ETF (SMH) tracks MVIS US Listed Semiconductor 25 Index. iShares Semiconductor ETF has $27.60 billion in assets, VanEck Semiconductor ETF has $53.15 billion. SOXX has an expense ratio of 0.34%, 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.