What is an exchange-traded fund (ETF) and how do semiconductor ETFs work?

An exchange-traded fund (ETF) is a basket of securities that trades on an exchange like a stock. Semiconductor ETFs, such as SOXQ and SOXX, typically hold shares of companies within the semiconductor industry. These funds allow investors to gain exposure to the sector without selecting individual stocks. The value of the ETF fluctuates based on the performance of its underlying holdings.

Why do two ETFs in the same sector have different performance metrics?

Differences arise due to varying holdings, expense ratios, and management styles. For example, SOXQ tracks a specific set of semiconductor companies, while SOXX may include a broader or differently weighted selection. This results in distinct portfolio compositions, affecting performance, liquidity, and risk profiles. Investors should review each fund's holdings and structure to understand these nuances.

How does tracking error affect semiconductor ETFs?

Tracking error measures how closely an ETF follows its benchmark index. Since the index tracked is not available for SOXQ or SOXX, investors must rely on historical performance comparisons. Factors like management fees, replication methods, and market conditions contribute to tracking error. A lower tracking error indicates more accurate reflection of the sector's performance, enhancing predictability for investors.

How do the expense ratios of SOXQ and SOXX compare?

SOXQ has a lower expense ratio of 0.19%, compared to SOXX's 0.33%. This means that annually, SOXQ incurs less management fees, potentially enhancing net returns over time. The fee difference of 0.14 percentage points may seem small, but it accumulates, making SOXQ a more cost-efficient option for long-term holdings.

Which semiconductor ETF offers higher dividend yield?

SOXQ provides a higher dividend yield of 0.29%, whereas SOXX yields 0.22%. This suggests that SOXQ could generate slightly more income from dividends annually. However, dividend yields fluctuate based on company payouts and fund performance. Investors should consider these yields alongside total returns and fund objectives when evaluating income potential.

How do the top holdings of SOXQ and SOXX differ?

Both SOXQ and SOXX share key holdings like NVDA, MU, AVGO, MRVL, AMD, INTC, and KLAC. However, SOXQ weights NVDA at 13.92% and MU at 8.99%, while SOXX prioritises INTC at 9.23% and AMD at 9.05%. SOXX also includes QCOM, ADI, and TXN, offering broader diversification. These differences influence each fund's exposure and performance dynamics.

What are the implications of net asset size for liquidity?

SOXX's $45.4 billion in net assets ensures high liquidity and tighter trading spreads, making it easier to buy or sell shares. SOXQ, with $3.1 billion, is considerably smaller, which may result in less liquidity and potentially wider bid-ask spreads. Larger funds like SOXX generally attract more trading activity, benefiting investors with efficient execution.

How do semiconductor ETFs align with market trends?

SOXQ features significant exposure to growth leaders like NVDA and AVGO, aligning with recent market trends favouring high-growth semiconductor companies. SOXX includes diversified holdings such as QCOM, ADI, and TXN, offering stability beyond the core leaders. Both funds capture sector movements, but SOXQ's emphasis on growth stocks may react more sharply to market shifts, while SOXX provides broader sector representation.

What sector concentration risks do investors face with these ETFs?

With sector weights not available for SOXQ or SOXX, investors cannot easily assess concentration risks. However, top holdings like NVDA, MU, and AVGO in both funds indicate exposure to major semiconductor players. Differences in holdings—such as SOXX's inclusion of QCOM, ADI, and TXN—may mitigate or amplify concentration. Investors should monitor holdings regularly for balanced sector exposure.

Why does the inception date matter for ETFs like SOXQ and SOXX?

SOXX, established in 2001, has a long track record, offering confidence in consistency. In contrast, SOXQ, launched in 2021, has a limited history, affecting its perceived stability. Longer histories provide more data on performance during market cycles, aiding investors in assessing risk and reliability. Newer funds like SOXQ may offer innovative strategies but lack historical validation.

What are the key considerations when choosing between SOXQ and SOXX?

Consider expense ratios, dividend yields, liquidity, holdings, and track record. SOXQ offers lower fees and higher dividends but smaller net assets. SOXX ensures liquidity and a longer history with broader diversification. Investors should evaluate these factors against their goals, risk tolerance, and preferences for cost efficiency versus established performance consistency.

Can I use both SOXQ and SOXX in a diversified portfolio?

Yes, investors may use both SOXQ and SOXX to complement each other. SOXQ's lower fees and growth-focused holdings can balance SOXX's established liquidity and broader diversification. Combining funds mitigates specific risks like concentration or cost inefficiencies. Always align choices with your investment strategy and consult available data to maintain portfolio coherence and risk management.

SOXQ vs SOXX

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

Compare Invesco Semiconductor ETF (SOXQ) and iShares Semiconductor ETF (SOXX). This page examines their expense ratios, top holdings, dividend yields and how each fund tracks the semiconductor market, offering a factual view of their key differences and similarities. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SOXQ

Metric

SOXX

0.19%

Expense Ratio

0.33%

0.29%

Dividend Yield

0.22%

$3.07B

Net Assets

$45.37B

Holdings

Jun 11, 2021

Inception Date

Jul 10, 2001

–

Index Tracked

–

Technology

Fund Category

Technology

SOXQ costs about $14.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	SOXQ	SOXX
NVDANVIDIA Corporation	13.92%	7.66%
MUMicron Technology, Inc.	8.99%	8.06%
AVGOBroadcom Inc.	8.68%	7.35%
MRVLMarvell Technology, Inc.	5.25%	4.39%
AMDAdvanced Micro Devices, Inc.	4.72%	9.05%
INTCIntel Corporation	4.24%	9.23%
KLACKLA Corporation	3.93%	3.84%

Discover More Comparisons

SOXL vs SOXX

Compare SOXL and SOXX ETFs. Review 0.75% vs 0.33% expense ratios, holdings, yields and 3x leveraged daily tracking differences for semiconductor investors.

SMH vs SOXX

Compare SMH and SOXX on fees, holdings, dividends and index tracking to understand semiconductor ETF differences. Educational information only.

FTXL vs SOXX

Compare FTXL and SOXX on fees (0.60% vs 0.33%), holdings, dividends (0.10% vs 0.22%), and tracking. Educational review of semiconductor sector exposure.

Investment Analysis

SOXQ

Pros

SOXQ offers a lower expense ratio of 0.19% compared to SOXX's 0.33%, reducing annual holding costs.
SOXQ has a higher dividend yield of 0.29% versus SOXX's 0.22%, potentially providing greater income.
SOXQ features significant exposure to growth leaders like NVDA and AVGO, aligning with recent market trends.

Considerations

With net assets of $3.1 billion, SOXQ is considerably smaller than SOXX, potentially affecting liquidity.
SOXQ's recent inception in 2021 limits its track record compared to established funds like SOXX.
The absence of available sector weights means investors cannot easily assess sector concentration risks.

SOXX

Pros

SOXX's $45.4 billion in net assets ensures high liquidity and tighter trading spreads.
Established in 2001, SOXX has a long track record, providing confidence in its consistency.
Its inclusion of QCOM, ADI, and TXN offers diversification beyond the core semiconductor leaders.

Considerations

SOXX's expense ratio of 0.33% is higher, leading to potentially reduced net returns for investors.
The dividend yield of 0.22% is lower than SOXQ's, providing less income to investors.
SOXX lacks available sector weights, complicating the assessment of its portfolio's industry distribution.

Related Market Insights

The ETF Revolution: Why Smart Money Is Choosing Baskets Over Individual Stocks

Discover why smart investors choose ETFs for instant diversification, lower costs, and professional portfolio construction. Explore top ETFs like SPY, QQQ, DIA on Nemo.

Aimee Silverwood | Financial Analyst

25 July 2025

Read Insight

Related Market Insights

The ETF Revolution: Why Smart Money Is Choosing Baskets Over Individual Stocks

Discover why smart investors choose ETFs for instant diversification, lower costs, and professional portfolio construction. Explore top ETFs like SPY, QQQ, DIA on Nemo.

Aimee Silverwood | Financial Analyst

25 July 2025

Read Insight

About SOXQ and SOXX

SOXQ (SOXQ)

The Invesco Semiconductor ETF aims to provide investors with broad exposure to companies involved in the semiconductor industry. As an exchange-traded fund, it allows investors to track the performance of this vital sector without needing to select individual stocks. With net assets of approximately USD 3.07 billion and 33 holdings, the fund offers a concentrated yet diversified view of the semiconductor landscape. Launched in June 2021, it operates with an expense ratio of 0.19%, which is competitive for its category. The fund currently yields a small dividend of 0.29%, making it more suitable for growth-oriented investors rather than those seeking high income. The semiconductor sector is closely tied to technology advancements and global demand for electronics, meaning returns can fluctuate significantly based on economic cycles and industry trends.

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.

Which Baskets Do They Appear In?

Popular ETFs

ETFs give you an easy way to invest in a basket of companies at once. These carefully selected exchange-traded funds were chosen by our professional analysts to help you diversify and reduce risk while still capturing market growth.

Published: 24 May 2025

Explore Basket

Which Baskets Do They Appear In?

Popular ETFs

Published: 24 May 2025

Explore Basket

Buy SOXQ or SOXX in Nemo

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

SOXQ vs SOXX

Fund Snapshot