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ETF Comparison

SOXQ vs VGT: Which Is the Better Pick in 2026?

A head-to-head comparison of Invesco PHLX Semiconductor ETF and Vanguard Information Technology ETF covering yield, cost, risk, and income potential.

Data updated July 9, 2026

Invesco
ETFs255
Total AUM$971B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Invesco is a major player in the ETF space known for offering a broad, diversified lineup of 71 funds spanning multiple investment themes and strategies. Their portfolio spans income-focused funds, factor-based equity strategies, commodity exposure, digital assets, ESG investing, and the popular Invesco QQQ family tracking the Nasdaq-100, serving both income-seeking and growth-oriented investors. The issuer is particularly recognized for specialized offerings like BulletShares (laddered bond funds), sector rotation strategies, and thematic investing options, making it a comprehensive choice for investors seeking varied exposures beyond traditional index funds.

See our curated list of related YouTube videos on SOXQ.

See all Invesco ETFs
Vanguard
ETFs115
Total AUM$4484B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.

See our curated list of related YouTube videos on VGT.

See all Vanguard ETFs

Side-by-side snapshot

SOXQVGT
Full nameInvesco PHLX Semiconductor ETFVanguard Information Technology ETF
IssuerInvescoVanguard
Last Close$101.97 as of July 9, 2026$117.71 as of July 9, 2026
Distribution yield0.30%0.47%
Distribution Safety Score 9189
Expense ratio0.19%0.10%
AUM$2.61B$143B
Distribution frequencyQuarterlyQuarterly
Underlying indexPHLX SOX Semiconductor Sector IndexBasket (Vanguard Information Technology ETF holdings)
ObjectiveTracks the PHLX SOX Semiconductor Sector Index of US-listed semiconductor companies.Seeks to track the performance of the MSCI US Investable Market Index/Information Technology 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the information technology sector, including technology software and services, hardware and equipment, and semiconductor manufacturers.
Asset classEquityEquity
Inception date06/11/202101/26/2004
Beta2.191.44
Last dividend$0.0770$0.1384
Ex-dividend date06/22/202606/24/2026

Bottom lineSOXQ and VGT are nearly interchangeable — both offer very similar exposure with very similar cost and risk. The clearest tie-breaker is cost: VGT is cheaper at 0.10% vs 0.19%.

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

SOXQ has outpaced VGT over the trailing twelve months, posting a 130.59% total return against 40.74%. The lead holds up over 5 years too: SOXQ has compounded at 33.24% a year, against 19.23% for VGT. VGT has been the steadier holding, though — annualized volatility of 24.2% against 38.5% for SOXQ. Figures are total returns: price change plus every distribution reinvested.

SymbolYTD1Y3Y5YSince Jun 2021Volatility Sharpe Sortino Max drawdown
SOXQ76.17%130.59%53.51%33.24%32.81%38.5%1.001.42-39.4%
VGT24.69%40.74%29.85%19.23%20.22%24.2%0.901.26-27.2%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 9, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jun 2021” measures every fund from June 11, 2021 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

SOXQ (Invesco PHLX Semiconductor ETF) and VGT (Vanguard Information Technology ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VGT offers the higher yield at 0.47% vs 0.30% for SOXQ. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VGT is cheaper with an expense ratio of 0.10% compared to 0.19%.

They track different benchmarks: SOXQ is linked to PHLX SOX Semiconductor Sector Index while VGT tracks Basket (Vanguard Information Technology ETF holdings), which means their performance drivers differ.

VGT is the larger fund by assets ($143B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, SOXQ would generate roughly $2.50/month, while VGT would produce $3.92/month, at current distribution rates. Both pay quarterly distributions.

SOXQ yield0.30%
VGT yield0.47%
Monthly diff on $10K$1.42

Cost & efficiency

Over 10 years on $10,000, SOXQ would cost approximately $190 in fees vs $100 for VGT (simplified, not compounded). The $90.00 difference may be offset by yield or performance.

SOXQ ER0.19%
VGT ER0.10%

Strategy & risk

SOXQ tracks PHLX SOX Semiconductor Sector Index with a basket approach, while VGT tracks Basket (Vanguard Information Technology ETF holdings) with a basket approach. Beta is 2.19 for SOXQ and 1.44 for VGT, indicating VGT is less volatile relative to the market.

SOXQ beta2.19
VGT beta1.44

Fund details

SOXQ is managed by Invesco (launched 06/11/2021) with $2.61B in assets. VGT is managed by Vanguard (launched 01/26/2004) with $143B in assets.

SOXQ AUM$2.61B
VGT AUM$143B
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Frequently asked questions

Is SOXQ or VGT better for dividend income?

It depends on your goals. VGT currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between SOXQ and VGT?

SOXQ (Invesco PHLX Semiconductor ETF) tracks PHLX SOX Semiconductor Sector Index with a basket approach, while VGT (Vanguard Information Technology ETF) tracks Basket (Vanguard Information Technology ETF holdings) with a basket approach. They are issued by Invesco and Vanguard respectively.

Can I hold both SOXQ and VGT?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, SOXQ or VGT?

SOXQ has an expense ratio of 0.19% while VGT charges 0.10%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in SOXQ vs VGT generate?

At current rates, $10,000 in SOXQ would generate roughly $2.50 per month ($30.00 annually). The same in VGT would produce about $3.92 per month ($47.00 annually).

Which has performed better historically, SOXQ or VGT?

SOXQ has outpaced VGT over the trailing twelve months, posting a 130.59% total return against 40.74%. The lead holds up over 5 years too: SOXQ has compounded at 33.24% a year, against 19.23% for VGT. VGT has been the steadier holding, though — annualized volatility of 24.2% against 38.5% for SOXQ. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

SOXQ vs VGT — at a glance

Generated July 2026 from current fund data.

Overview

SOXQ and VGT are both equity ETFs tracking the technology sector, but they carve it up differently. SOXQ is a narrowly focused play on semiconductor manufacturers using the PHLX SOX index, while VGT casts a much wider net across the entire information technology sector—software, services, hardware, and semiconductors combined. The result is a meaningful difference in concentration and volatility.

How they differ

The biggest distinction is scope. SOXQ holds only semiconductor companies; VGT holds the entire US tech sector across market caps. That focus makes SOXQ a sector bet within a sector, whereas VGT is the broader tech exposure.

Second, the volatility profile reflects that difference. SOXQ has a beta of 2.19, meaning it swings roughly twice as hard as the market. VGT's beta of 1.42 is closer to the broader market. SOXQ launched in 2021 and has $2.61B in assets; VGT has been around since 2004 with $143B under management.

On cost and yield, VGT edges out SOXQ slightly: a 0.10% expense ratio versus 0.19%, and a marginally higher 0.48% distribution rate versus 0.31%. Both distributions come quarterly.

Who each is best for

SOXQ: Fits investors with a conviction view on semiconductor demand and a higher tolerance for volatility who want concentrated exposure to chip manufacturers rather than a diversified tech holding.

VGT: Designed for investors seeking broad exposure to US information technology without betting heavily on any single subsector, comfortable with moderate tech-sector beta and seeking the stability of a $143B fund with nearly two decades of history.

Key risks to know

  • Sector concentration in SOXQ. Semiconductors are cyclical and capital-intensive. A downturn in chip spending or inventory corrections can hit SOXQ's entire portfolio simultaneously. VGT's diversification across software, services, and hardware provides some natural hedge.
  • High beta amplifies downturns. SOXQ's 2.19 beta means it will lose roughly twice as much in a market decline. That makes it more vulnerable than VGT to equity-market selloffs, especially the kind that hit growth and tech hardest.
  • Valuation risk in tech. Both funds hold companies that trade on growth and earnings expectations. If interest rates stay elevated or earnings growth disappoints, valuations across both funds could contract, though SOXQ's narrower focus concentrates that risk.
  • Supply-chain and geopolitical exposure. Semiconductor manufacturing and materials sourcing involve significant global dependencies, particularly Taiwan and East Asia. Trade restrictions, supply disruptions, or geopolitical tension can ripple through SOXQ's holdings disproportionately.

Bottom line

If you want a pure semiconductor bet with higher volatility and accept the concentration risk, SOXQ delivers that focus. If you prefer broad technology exposure at a lower cost and with less dramatic swings, VGT's diversification and scale offer that trade-off. Neither guarantees future returns; past performance in tech has not predicted what's ahead.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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