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ETF Comparison

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

A head-to-head comparison of Technology Select Sector SPDR Fund and iShares Semiconductor ETF covering yield, cost, risk, and income potential.

Data updated April 5, 2026

Side-by-side snapshot

XLKSOXX
Full nameTechnology Select Sector SPDR FundiShares Semiconductor ETF
IssuerState StreetiShares
Price$134.91$338.54
Distribution yield0.56%0.49%
Expense ratio0.08%0.34%
AUM$87.7B$21.7B
Distribution frequencyQuarterly
Underlying indexTechnology Select Sector Index
ObjectiveTrack the Technology Select Sector Index, providing exposure to the information technology constituents of the S&P 500.Tracks the ICE Semiconductor Index of US-listed semiconductor companies.
Asset classEquityEquity
Inception date12/16/1998
Beta1.241.79
Last dividend$0.17$0.21
Ex-dividend date03/23/202603/17/2026

Visual comparison

Key metrics

Projected income on $10K

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

Quick verdict

XLK (Technology Select Sector SPDR Fund) and SOXX (iShares Semiconductor ETF) are both popular quarterly-pay track the technology select sector index, providing exposure to the information technology constituents of the s&p 500. ETFs, but they take different approaches.

XLK offers the higher yield at 0.56% vs 0.49% for SOXX. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

XLK is cheaper with an expense ratio of 0.08% compared to 0.34%.

XLK is the larger fund by assets ($87.7B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, XLK would generate roughly $4.67/month while SOXX would produce $4.08/month at current distribution rates. Both pay quarterly distributions.

XLK yield0.56%
SOXX yield0.49%
Monthly diff on $10K$0.58

Cost & efficiency

Over 10 years on $10,000, XLK would cost approximately $80 in fees vs $340 for SOXX (simplified, not compounded). The $260.00 difference may be offset by yield or performance.

XLK ER0.08%
SOXX ER0.34%

Strategy & risk

XLK tracks Technology Select Sector Index with a track the technology select sector index, providing exposure to the information technology constituents of the s&p 500. approach, while SOXX tracks — using a tracks the ice semiconductor index of us-listed semiconductor companies. strategy. Beta is 1.24 for XLK and 1.79 for SOXX, indicating XLK is less volatile relative to the market.

XLK beta1.24
SOXX beta1.79

Fund details

XLK is managed by State Street (launched 12/16/1998) with $87.7B in assets. SOXX is managed by iShares (launched —) with $21.7B in assets.

XLK AUM$87.7B
SOXX AUM$21.7B

Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Frequently asked questions

Is XLK or SOXX better for dividend income?

It depends on your goals. XLK 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 XLK and SOXX?

XLK (Technology Select Sector SPDR Fund) tracks Technology Select Sector Index with a track the technology select sector index, providing exposure to the information technology constituents of the s&p 500. strategy, while SOXX (iShares Semiconductor ETF) tracks — with a tracks the ice semiconductor index of us-listed semiconductor companies. approach. They are issued by State Street and iShares respectively.

Can I hold both XLK and SOXX?

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, XLK or SOXX?

XLK has an expense ratio of 0.08% while SOXX charges 0.34%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in XLK vs SOXX generate?

At current yields, $10,000 in XLK would generate roughly $4.67 per month ($56.00 annually). The same in SOXX would produce about $4.08 per month ($49.00 annually).

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