ETF Comparison

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

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

Data updated July 4, 2026

iShares

ETFs481

Total AUM$4451B

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

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

See our curated list of related YouTube videos on SOXX.

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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.

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Side-by-side snapshot

	SOXX	VGT
Full name	iShares Semiconductor ETF	Vanguard Information Technology ETF
Issuer	iShares	Vanguard
Last Close	$566.32 as of July 4, 2026	$114.64 as of July 4, 2026
Distribution yield	0.20%	0.48%
Distribution Safety Score	96	89
Expense ratio	0.35%	0.10%
AUM	$36.9B	$143B
Distribution frequency	Quarterly	Quarterly
Underlying index	ICE Semiconductor Index	Basket (Vanguard Information Technology ETF holdings)
Objective	Tracks the ICE Semiconductor 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 class	Equity	Equity
Inception date	07/10/2001	01/26/2004
Beta	2.26	1.42
Last dividend	$0.2830	$0.1384
Ex-dividend date	09/15/2026	06/24/2026

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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

SOXX has outpaced VGT over the trailing twelve months, posting a 139.44% total return against 40.16%. The lead holds up over 10 years too: SOXX has compounded at 35.04% a year, against 25.04% for VGT. VGT has been the steadier holding, though — annualized volatility of 24.2% against 38.2% for SOXX. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since Jan 2004	Volatility	Sharpe	Sortino	Max drawdown
SOXX	80.73%	139.44%	50.21%	31.60%	35.04%	16.72%	38.2%	0.95	1.35	-41.4%
VGT	21.44%	40.16%	28.30%	18.86%	25.04%	14.92%	24.2%	0.85	1.20	-27.2%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jan 2004” measures every fund from January 30, 2004 — 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

SOXX (iShares 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 0.48% vs 0.20% for SOXX. 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 0.35%.

They track different benchmarks: SOXX is linked to ICE Semiconductor 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, SOXX would generate roughly $1.67/month, while VGT would produce $4.00/month, at current distribution rates. Both pay quarterly distributions.

SOXX yield0.20%

VGT yield0.48%

Monthly diff on $10K$2.33

Cost & efficiency

Over 10 years on $10,000, SOXX would cost approximately $350 in fees vs $100 for VGT (simplified, not compounded). The $250.00 difference may be offset by yield or performance.

SOXX ER0.35%

VGT ER0.10%

Strategy & risk

SOXX tracks ICE Semiconductor Index with a basket approach, while VGT tracks Basket (Vanguard Information Technology ETF holdings) with a basket approach. Beta is 2.26 for SOXX and 1.42 for VGT, indicating VGT is less volatile relative to the market.

SOXX beta2.26

VGT beta1.42

Fund details

SOXX is managed by iShares (launched 07/10/2001) with $36.9B in assets. VGT is managed by Vanguard (launched 01/26/2004) with $143B in assets.

SOXX AUM$36.9B

VGT AUM$143B

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Frequently asked questions

Is SOXX 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 SOXX and VGT?

SOXX (iShares Semiconductor ETF) tracks ICE Semiconductor 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 iShares and Vanguard respectively.

Can I hold both SOXX 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, SOXX or VGT?

SOXX has an expense ratio of 0.35% 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 SOXX vs VGT generate?

At current rates, $10,000 in SOXX would generate roughly $1.67 per month ($20.00 annually). The same in VGT would produce about $4.00 per month ($48.00 annually).

Which has performed better historically, SOXX or VGT?

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SOXX vs VGT — at a glance

Generated June 2026 from current fund data.

Overview

SOXX and VGT are both technology-sector ETFs, but they operate at different scopes. SOXX is a pure-play semiconductor fund tracking the ICE Semiconductor Index, limiting itself to chip designers and manufacturers. VGT is a broad information-technology fund covering semiconductors alongside software, hardware, and IT services across the entire MSCI US Investable Market Index. The key distinction: SOXX is narrow and concentrated on one hardware subsector, while VGT spreads exposure across the full tech landscape.

How they differ

SOXX's single biggest edge is sector concentration—it holds only semiconductor companies, so investors get direct leverage to chip cycles without software or services dilution. That focus drives a higher beta of 2.26 versus VGT's 1.42, meaning SOXX amplifies upside and downside in chip rallies and selloffs. VGT compensates with breadth: $143B in assets under management versus SOXX's $36.9B, plus a much lower expense ratio of 0.10% compared to SOXX's 0.35%. On yield, both offer minimal distribution rates (SOXX at 0.18%, VGT at 0.48%), reflecting tech's traditional preference for capital gains over dividends; VGT's slightly higher yield reflects its inclusion of more mature, dividend-paying software and hardware companies outside pure semiconductors.

Who each is best for

SOXX: Fits investors who want concentrated exposure to semiconductor cycles and can tolerate higher volatility in exchange for magnified upside during chip-led rallies. Suits tactical allocations to semiconductor strength rather than core long-term positions.

VGT: Designed for investors seeking broad-based technology exposure without the concentration risk of a single hardware subsector. Works well as a core tech holding for those comfortable with mid-to-high growth profiles but preferring diversification across software, services, and semiconductors.

Key risks to know

Sector concentration in SOXX. A semiconductor-only fund leaves zero hedging from software or services strength; downturns in chipmaking directly pressure the entire portfolio without offset from other tech segments.

Cyclical capital intensity in semiconductors. Both funds carry semiconductor risk, but SOXX bears it undiluted. Chip cycles—driven by fab capacity swings and commodity-like pricing pressure—can erode returns for years between upgrades.

High beta volatility in SOXX. A beta of 2.26 means SOXX's NAV can swing sharply on single-day tech selloffs. This amplification cuts both ways; downturns may see steeper losses than the broader market.

Geopolitical and trade policy exposure. Both funds hold US-listed semiconductor companies whose supply chains and China sales face tariff and export-control risk. VGT's broader base offers some insulation through software and services; SOXX has none.

Valuation-driven drawdowns in growth tech. VGT's software and services holdings carry high price-to-earnings multiples sensitive to interest-rate moves. SOXX's hardware focus means less rate sensitivity but greater earnings-cycle risk.

Bottom line

If you want pure semiconductor exposure and accept higher volatility, SOXX's tight focus and 2.26 beta deliver leveraged chip-cycle returns. If you prefer tech exposure with diversification across semiconductors, software, and services at a lower cost, VGT's $143B scale and 0.10% expense ratio provide broader shelter. Past performance doesn't predict future results, and both funds' returns depend heavily on tech earnings growth and valuation cycles.

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