ETF Comparison

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

A head-to-head comparison of iShares Semiconductor ETF and Technology Select Sector SPDR Fund 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.

See all iShares ETFs

State Street

ETFs182

Total AUM$2107B

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

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on XLK.

See all State Street ETFs

Side-by-side snapshot

	SOXX	XLK
Full name	iShares Semiconductor ETF	Technology Select Sector SPDR Fund
Issuer	iShares	State Street
Last Close	$566.32 as of July 4, 2026	$180.59 as of July 4, 2026
Distribution yield	0.20%	0.51%
Distribution Safety Score	96	99
Expense ratio	0.35%	0.09%
AUM	$36.9B	$118B
Distribution frequency	Quarterly	Quarterly
Underlying index	ICE Semiconductor Index	Technology Select Sector Index
Objective	Tracks the ICE Semiconductor Index of US-listed semiconductor companies.	Track the Technology Select Sector Index, providing exposure to the information technology constituents of the S&P 500.
Asset class	Equity	Equity
Inception date	07/10/2001	12/16/1998
Beta	2.26	1.42
Last dividend	$0.2830	$0.2280
Ex-dividend date	09/15/2026	09/21/2026

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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 XLK over the trailing twelve months, posting a 139.44% total return against 44.50%. The lead holds up over 10 years too: SOXX has compounded at 35.04% a year, against 24.87% for XLK. XLK has been the steadier holding, though — annualized volatility of 24.4% against 38.2% for SOXX. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since Jul 2001	Volatility	Sharpe	Sortino	Max drawdown
SOXX	80.73%	139.44%	50.21%	31.60%	35.04%	14.38%	38.2%	0.95	1.35	-41.4%
XLK	25.30%	44.50%	28.51%	20.41%	24.87%	12.21%	24.4%	0.85	1.19	-25.7%

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 Jul 2001” measures every fund from July 13, 2001 — 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 XLK (Technology Select Sector SPDR Fund) are both quarterly-pay dividend ETFs, but they take different approaches.

XLK offers the higher yield at 0.51% vs 0.20% 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 0.09% compared to 0.35%.

They track different benchmarks: SOXX is linked to ICE Semiconductor Index while XLK tracks Technology Select Sector Index, which means their performance drivers differ.

XLK is the larger fund by assets ($118B), 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 XLK would produce $4.25/month, at current distribution rates. Both pay quarterly distributions.

SOXX yield0.20%

XLK yield0.51%

Monthly diff on $10K$2.58

Cost & efficiency

Over 10 years on $10,000, SOXX would cost approximately $350 in fees vs $90 for XLK (simplified, not compounded). The $260.00 difference may be offset by yield or performance.

SOXX ER0.35%

XLK ER0.09%

Strategy & risk

SOXX tracks ICE Semiconductor Index with a basket approach, while XLK tracks Technology Select Sector Index with a technology approach. Beta is 2.26 for SOXX and 1.42 for XLK, indicating XLK is less volatile relative to the market.

SOXX beta2.26

XLK beta1.42

Fund details

SOXX is managed by iShares (launched 07/10/2001) with $36.9B in assets. XLK is managed by State Street (launched 12/16/1998) with $118B in assets.

SOXX AUM$36.9B

XLK AUM$118B

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Frequently asked questions

Is SOXX or XLK 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 SOXX and XLK?

SOXX (iShares Semiconductor ETF) tracks ICE Semiconductor Index with a basket approach, while XLK (Technology Select Sector SPDR Fund) tracks Technology Select Sector Index with a technology approach. They are issued by iShares and State Street respectively.

Can I hold both SOXX and XLK?

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 XLK?

SOXX has an expense ratio of 0.35% while XLK charges 0.09%. Lower fees mean more of your investment returns stay in your pocket over time.

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

At current rates, $10,000 in SOXX would generate roughly $1.67 per month ($20.00 annually). The same in XLK would produce about $4.25 per month ($51.00 annually).

Which has performed better historically, SOXX or XLK?

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SOXX vs XLK — at a glance

Generated June 2026 from current fund data.

Overview

SOXX and XLK are both technology-focused equity ETFs, but they carve out distinctly different slices of the sector. SOXX tracks the ICE Semiconductor Index and holds only semiconductor companies—a concentrated, cyclical play on chip design and manufacturing. XLK, meanwhile, holds the S&P 500's entire technology sector, which includes semiconductors, software, cloud services, and hardware vendors. The difference is breadth: SOXX bets on semiconductors alone; XLK bets on tech at large.

How they differ

The biggest difference is scope. SOXX owns only semiconductor firms, while XLK holds the full tech sector—software giants like Microsoft and Apple, cloud providers, IT services firms, and semiconductor makers all mixed together. That makes SOXX roughly 2.6 times more volatile than the broad market (beta of 2.26) versus XLK's 1.42, reflecting semiconductor cyclicality and capital intensity.

Second, SOXX costs more to own. Its 0.35% expense ratio is nearly four times XLK's 0.09%, and SOXX is also the much smaller fund at $36.9 billion in AUM versus XLK's $118 billion. That size gap affects trading tightness and fund stability.

Third, yield is minimal for both—SOXX at 0.18% and XLK at 0.49%—but XLK edges ahead. Neither fund is a dividend vehicle; both are pure growth plays with distributions reflective of the tech sector's historically low payout culture.

Who each is best for

SOXX: Fits investors who want concentrated exposure to semiconductor fundamentals—chip demand, fab utilization, industry cycles—and can tolerate swings that amplify broad market moves. Appeals to those building a deliberate, multi-sector portfolio who need a dedicated semiconductors tilt rather than relying on XLK's blended tech weight.

XLK: Designed for investors seeking broad-based tech sector exposure without semiconductor concentration risk. Suits buy-and-hold allocators who want lower fees, larger fund size, and diversification across software, cloud, hardware, and chip makers together.

Key risks to know

Semiconductor cycle risk (SOXX): Chip demand is tied to capital spending cycles in PCs, data centers, and consumer electronics. Downturns can be sharp and extended, amplifying SOXX's already-high beta and drawdowns.

Valuation sensitivity: Both funds hold companies trading at elevated multiples relative to earnings, with most gains priced on future growth. Interest rate increases and profit-margin compression can pressure both meaningfully.

Concentration in mega-cap tech (XLK): While broader than SOXX, XLK's largest holdings—Apple, Microsoft, Nvidia, Broadcom—represent a significant portion of the fund. A pullback in mega-cap valuations affects both funds, but XLK's diversification provides some cushion SOXX lacks.

SOXX liquidity and fund flows: At $36.9 billion AUM, SOXX is substantially smaller than XLK, making it more vulnerable to outflows during sector downturns and potentially wider bid-ask spreads.

Bottom line

If you want semiconductor-specific leverage and can tolerate higher volatility, SOXX offers concentrated exposure at the cost of fees and concentration risk. If you prefer broader tech diversification with lower fees and a $118 billion fund behind you, XLK provides simpler S&P tech-sector tracking. Past performance doesn't predict future results; neither fund offers meaningful income, and both will swing with the sector's growth cycles.

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