Generated July 2026 from current fund data.
Overview
SOXQ and SOXX are both pure-play US semiconductor equity ETFs tracking different sector indexes—SOXQ follows the PHLX SOX index via Invesco, while SOXX tracks the ICE Semiconductor Index through iShares. The funds compete directly on exposure to the same industry but differ significantly in age, asset base, and fee structure. SOXX has been around since 2001 and holds $36.9B in assets; SOXQ launched in 2021 with $2.61B.
How they differ
The biggest structural difference is age and liquidity: SOXX is a 23-year-old iShares flagship with nearly $37 billion in assets, while SOXQ is a newer Invesco fund with about $2.6 billion. That scale gap matters for trading costs and index methodology stability.
On fees, SOXQ costs 0.19% annually versus SOXX's 0.35%—a 16-basis-point advantage that compounds over time, though SOXX's larger asset base may offer tighter bid-ask spreads in practice. Both funds have nearly identical betas (SOXQ at 2.19, SOXX at 2.26), confirming they deliver comparable semiconductor sector volatility.
Income is minimal for both: SOXQ yields 0.31% and SOXX yields 0.20%. The underlying indexes track different company weightings and constituents—PHLX SOX versus ICE Semiconductor—so subtle differences in which semiconductor subsectors and holdings get emphasized will create modest performance divergence over time, though both capture the same core sector.
Who each is best for
SOXQ: Fits investors who want semiconductor exposure with a lower expense ratio and don't require the historical track record or maximal trading liquidity of an older fund. Suits allocators building a tech-heavy portfolio from scratch or those prioritizing cost efficiency.
SOXX: Designed for investors who value the security of a large, established fund with a long performance history and deep liquidity, willing to accept a higher fee in exchange for minimal execution friction and a proven index methodology refined over two decades.
Key risks to know
- Semiconductor cyclicality and concentration: Both funds are highly concentrated in a cyclical industry dominated by a handful of mega-cap chipmakers. Downturns in chip demand, overcapacity, or prolonged weakness in end-markets (phones, data centers, PCs) can drive sharp sector-wide declines.
- High beta and volatility: With betas near 2.2, both funds amplify market swings. A 10% market decline could translate into a 20%+ move for either fund in adverse conditions, creating material drawdown risk for income-focused or near-term investors.
- Index turnover and reconstitution risk: The PHLX SOX and ICE Semiconductor indexes rebalance periodically, triggering turnover and potential tax consequences. Rapid changes in semiconductor subsectors (e.g., shifts from memory to logic to foundry strength) can cause sudden weight shifts and performance divergence between the two funds.
- Liquidity risk in downturns: Although SOXX is larger, semiconductor ETFs can experience widened spreads during market stress or sector capitulation, making exit timing unpredictable during sharp sell-offs.
Bottom line
If you prioritize lower costs and don't need the established pedigree, SOXQ's 16-basis-point fee advantage and fresher mandate become meaningful over a multi-decade horizon. If you value liquidity depth, a 23-year performance record, and the confidence of an enormous existing shareholder base, SOXX's scale and track record offset its higher fee. Both carry substantial downside volatility and industry concentration—semiconductor exposure demands conviction about the sector's long-term prospects, regardless of which ETF you choose.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
