What type of companies are included in the IGV ETF's portfolio?

IGV provides exposure to software firms across cloud computing, cybersecurity, e-commerce platforms, and enterprise solutions. It holds companies like PANW (9.02%) and PLTR (8.71%), which focus on digital transformation tools. While it lacks a stated sector breakdown, its top holdings are predominantly software providers, reflecting its expanded tech-software classification.

How do fees and yields differ between the two ETFs?

SOXX has a 0.33% expense ratio, slightly lower than IGV’s 0.38%, meaning annual costs are marginally cheaper. SOXX offers a 0.22% dividend yield versus IGV’s 0.02%, though both pay minimal income. Investors seeking lower fees and modest distributions might prefer SOXX, while IGV suits those prioritising pure software exposure regardless of payouts or cost differences.

How do IGV and SOXX relate to broader tech investment?

These funds represent specialised segments within the wider technology universe. Investors often combine them to gain balanced coverage of both software companies and semiconductor manufacturers, as these are two critical but distinct pillars of modern digital infrastructure. Using both funds together allows an investor to participate in the entire tech stack, from the physical chips powering devices to the applications running on them, rather than betting on a single sub-sector.

How do the expense ratios of IGV and SOXX compare?

IGV has an expense ratio of 0.38%, while SOXX’s is slightly lower at 0.33%. Both are moderately high compared to broad-market ETFs, reflecting their specialised focus. This difference can accumulate over time, affecting net returns for long-term holders. The 0.05 percentage point gap might influence investors weighing cost against their desired level of sector specificity, as fees directly reduce the compound growth potential of the investment.

What investment objectives align with these software and chip funds?

These funds align with objectives focused on long-term capital appreciation through growth-oriented sectors. Since dividend yields are low at 0.02% for software and 0.22% for chips, income is minimal. Investors typically select these ETFs to target technological innovation and scalability. The emphasis remains on holding the position to capture price increases driven by industry adoption, rather than seeking regular cash distributions from the underlying portfolio companies.

Are there any overlapping holdings between the two funds?

There is no overlap between the top 10 holdings of IGV and SOXX. IGV’s leading positions include software and cyber firms like PANW and MSFT, while SOXX holds chipmakers such as INTC and NVDA. This distinct composition ensures that combining the funds results in diversified technology exposure, covering separate industrial niches within the broader tech sector, rather than duplicating the same major companies in a portfolio.

What do the net asset values tell us about these ETFs?

The net asset values indicate strong institutional and retail demand for these specialised technology funds. One ETF holds $45.4 billion, while the other maintains $14.1 billion. These substantial asset bases provide liquidity for trading. Higher assets often mean more stable fund operations. This capitalisation reflects confidence in the long-term growth trajectory of the digital economy, ensuring the funds are large enough to accommodate significant investor participation without excessive price impact.

Do these ETFs offer any form of regular income?

Yes, but very modestly. IGV has a negligible 0.02% yield, as software firms often retain cash for expansion. SOXX offers 0.22%, with chipmakers paying small dividends despite reinvesting heavily in R&D. Neither is a reliable income source, so total returns depend on share price growth. Investors looking for regular payouts may find these ETFs less suitable for this purpose, as the underlying companies prioritise funding future technological developments over distributing large amounts of cash to shareholders annually.

How do these ETFs compare in terms of size?

Both ETFs are well-established, having launched on July 10, 2001. They represent mature vehicles in the market. The fund with $45.4 billion in assets is notably larger, offering deeper liquidity and potentially tighter bid-ask spreads. The other fund manages $14.1 billion. Both sizes indicate significant investor adoption and issuer credibility within the ETF landscape, suggesting they are stable, long-standing options for those seeking targeted exposure to their respective technology niches.

Are there risks related to concentration in these ETFs?

Yes. IGV has top holdings exceeding 8%, like PANW and PLTR, while SOXX’s INTC and AMD are over 9%. This creates concentration risk, meaning a single stock’s performance heavily impacts the fund. Unlike diversified ETFs, these specialised products depend more on individual companies’ results. Such weighting can lead to sharper price movements if a major constituent underperforms, making them riskier for conservative investors.

Why is sector specificity important in ETF investing?

Sector specificity allows precise exposure to industries like software or semiconductors. IGV and SOXX focus tightly on these areas, unlike broad tech ETFs. Investors choose them to align with views on digital transformation or AI infrastructure growth. However, this precision increases risk: downturns in one sector heavily affect the fund. Understanding the tracked index is key. Both funds launched July 10, 2001, and manage $14.1 billion and $45.4 billion respectively.

What educational resources can help understand ETF comparisons?

This comparison is for educational purposes only and does not constitute financial advice. Always review official fund documentation for precise fee structures and portfolio details. Understanding concepts like expense ratios and tracking methods helps evaluate suitability based on personal circumstances. The funds discussed here have different expense ratios, asset sizes, and top holdings, but all data reflects current facts as of the last update. Verify figures before making decisions.

IGV vs SOXX

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare IGV (iShares Expanded Tech-Software Sector ETF) and SOXX (iShares Semiconductor ETF) with fees, holdings, dividends and tracking focus. See net assets, expense ratios (0.38% and 0.33%), yields (0.02% and 0.22%) and shared top holdings. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

IGV

Metric

SOXX

0.38%

Expense Ratio

0.33%

0.02%

Dividend Yield

0.22%

$14.09B

Net Assets

$45.37B

109

Holdings

Jul 10, 2001

Inception Date

Jul 10, 2001

–

Index Tracked

–

Technology

Fund Category

Technology

SOXX costs about $5.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

IGV

Pros

IGV offers broad exposure to the software sector, which often demonstrates high profit margins and scalable revenue models.
The fund holds a substantial $14.1 billion in net assets, indicating solid liquidity and widespread investor adoption.
Established in July 2001, IGV benefits from a long operating history and deep issuer credibility within the ETF market.

Considerations

With an expense ratio of 0.38%, IGV carries a relatively high management fee compared to broader technology ETFs.
The dividend yield of 0.02% is negligible, making the fund primarily dependent on capital appreciation for returns.
Top holdings like PANW and PLTR each exceed 8%, creating significant concentration risk within the fund's portfolio.

SOXX

Pros

SOXX provides targeted exposure to the semiconductor industry, a sector critical to modern computing, AI, and telecommunications.
The fund possesses massive liquidity with $45.4 billion in net assets, facilitating easier trading and tighter bid-ask spreads.
It maintains a long-standing presence since its inception in July 2001, allowing investors to track its performance over decades.

Considerations

The 0.33% expense ratio is moderately high, impacting net returns for long-term holders of the semiconductor sector ETF.
A dividend yield of 0.22% is low, reflecting the sector's focus on reinvesting capital into growth rather than payouts.
Concentration risk exists as top holdings like INTC and AMD each represent over 9% of the total fund assets.

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About IGV and SOXX

IGV (IGV)

The iShares Expanded Tech-Software Sector ETF (IGV) offers investors exposure to a broad basket of companies within the software and information technology services sectors. With a market capitalisation focus on large, mid, and small-cap software firms, it aims to reflect the performance of the expanded tech software industry. The fund holds approximately 109 positions, providing diversification within the sector while concentrating on businesses involved in developing, maintaining, and supporting software applications. Investors should note that the fund’s value can fluctuate significantly due to its focus on a single sector. While it provides an efficient way to access the tech-software theme, returns are not guaranteed, and market conditions can impact performance. The expense ratio is 0.38%, and it currently reports a very low dividend yield.

SOXX (SOXX)

iShares Semiconductor ETF (SOXX) offers investors targeted exposure to companies engaged in the semiconductor industry — including chip designers, manufacturers and equipment suppliers. The ETF aims to track the performance of a semiconductor-focused index, delivering a single, tradable instrument that reflects broad industry trends rather than the fortunes of any one company. SOXX typically holds a concentrated set of large and mid-cap names, so its performance is closely linked to cyclical demand for chips across computing, mobile, automotive and industrial markets. Investors should note that ETFs carry market risk, sector concentration risk and potential tracking error versus their benchmark. Metrics such as assets under management and average daily volume are often more relevant than a single-company market capitalisation. Fees, liquidity and the fund’s holdings can affect outcomes. This is general educational information only and not personal advice; values can fall as well as rise and past performance is not a reliable guide to the future.

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IGV vs SOXX

Fund Snapshot