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ETF Comparison

SOXX vs XLK: One Industry, or the Whole Tech Sector?

A head-to-head of the iShares Semiconductor ETF and the Technology Select Sector SPDR covering concentration, cost, and what each already includes.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

  • SOXXInvestors who want broad equity exposure.
  • XLKInvestors who want broad equity exposure.

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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

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

SOXX has outpaced XLK over the trailing twelve months, posting a 113.79% total return against 41.12%. The lead holds up over 10 years too: SOXX has compounded at 33.00% a year, against 24.98% for XLK. XLK has been the steadier holding, though — annualized volatility of 25.0% against 39.8% for SOXX. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Jul 2001Volatility Sharpe Sortino Max drawdown
SOXX88.06%113.79%55.69%32.67%33.00%14.41%39.8%1.011.43-41.4%
XLK38.97%41.12%34.94%22.29%24.98%12.54%25.0%1.021.47-25.7%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Jul 2001” measures every fund from July 13, 2001 — the start of shared available history — 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.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricSOXXXLK
Full nameiShares Semiconductor ETFState Street Technology Select Sector SPDR ETF
IssueriSharesState Street
Underlying indexICE Semiconductor IndexTechnology Select Sector Index
Last Close$588.90 as of October 2, 2026$199.81 as of October 2, 2026
Distribution rate0.22%0.44%
Trailing 12-month yield0.21%0.42%
Distribution Safety Score™ 6699
Safety-Adjusted Yield 0.15%0.44%
Expense ratio0.33%0.08%
AUM$48.9B$128B
Distribution frequencyQuarterlyQuarterly
ObjectiveTracks 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 classEquityEquity
Inception date07/10/200112/16/1998
Beta2.331.5
Last dividend$0.325$0.221
Ex-dividend date09/15/202609/21/2026

Bottom lineSOXX and XLK are both for investors who want broad equity exposure — so strategy isn't the deciding factor here. Cost is: XLK charges 0.08% against 0.33% for SOXX, and between two funds this similar that gap comes straight out of your return every year you hold.

SOXX vs XLK: one industry or the tech sector?

XLK already includes many semiconductor names. SOXX concentrates there. Breadth versus a pure chip bet is the decision.

SOXXXLK
IndexICE Semiconductor IndexTechnology Select Sector Index
Expense ratio0.33%0.08%
Distribution rate0.22%0.44%
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iShares
ETFs466
Total AUM$4683B

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
ETFs179
Total AUM$2146B

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

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Quick verdict

SOXX (iShares Semiconductor ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

XLK offers the higher yield at 0.44% vs 0.22% 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 0.33%.

They have different reference exposures: SOXX is linked to ICE Semiconductor Index while XLK is linked to Technology Select Sector Index, which means their performance drivers differ.

XLK is the larger fund by assets ($128B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, SOXX would generate roughly $5.50 cash per distribution, while XLK would produce $11.00 cash per distribution, at current distribution rates. Both pay quarterly distributions.

SOXX yield0.22%
XLK yield0.44%
Cash diff on $10K$5.50

Cost & efficiency

Over 10 years on $10,000, SOXX would cost approximately $330 in fees vs $80 for XLK (simplified, not compounded). The $250.00 difference may be offset by yield or performance.

SOXX ER0.33%
XLK ER0.08%

Strategy & risk

SOXX tracks ICE Semiconductor Index, while XLK tracks Technology Select Sector Index with a technology approach. Beta is 2.33 for SOXX and 1.5 for XLK, making XLK the less volatile of the two by this measure.

SOXX beta2.33
XLK beta1.5

Fund details

SOXX is managed by iShares (launched 07/10/2001) with $48.9B in assets. XLK is managed by State Street (launched 12/16/1998) with $128B in assets.

SOXX AUM$48.9B
XLK AUM$128B
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Frequently asked questions

What is the difference between SOXX and XLK?

SOXX (iShares Semiconductor ETF) concentrates in ICE Semiconductor Index. XLK (State Street Technology Select Sector SPDR ETF) tracks Technology Select Sector Index — software, hardware, and semis. XLK already includes many SOXX names. Cost is 0.33% versus 0.08%; distributions are 0.22% and 0.44% as of October 2026.

What is the current distribution rate for SOXX and XLK?

SOXX currently distributes 0.22% and XLK 0.44%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

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.

Can I hold both SOXX and XLK?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is SOXX or XLK safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — XLK scores 99, SOXX scores 66, so XLK's payout currently looks the more resilient of the two. XLK has also shown lower price volatility (beta 1.50 vs 2.33 for SOXX). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, SOXX or XLK?

SOXX has an expense ratio of 0.33% while XLK charges 0.08%. 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 $5.50 cash per distribution ($22.00 annually). The same in XLK would produce about $11.00 cash per distribution ($44.00 annually).

Which has performed better historically, SOXX or XLK?

SOXX has outpaced XLK over the trailing twelve months, posting a 113.79% total return against 41.12%. The lead holds up over 10 years too: SOXX has compounded at 33.00% a year, against 24.98% for XLK. XLK has been the steadier holding, though — annualized volatility of 25.0% against 39.8% for SOXX. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

SOXX vs XLK — at a glance

Generated October 3, 2026.

Overview

SOXX and XLK are both US technology ETFs, but they differ fundamentally in scope and concentration. The semiconductor bet in SOXX is narrower and more volatile; XLK spreads exposure across software, hardware, semiconductors, and related services.

How they differ

The biggest difference is strategy: SOXX is a pure-play semiconductor fund tracking a specialized index of chip designers and manufacturers, while XLK is a broad tech sector fund that includes semiconductors but also software, cloud services, IT consulting, and hardware peripherals. SOXX carries a beta of 2.33—meaning it typically swings twice as hard as the market—while XLK's beta of 1.5 reflects the diversification of the larger sector. Dividend yield is modest in both—0.22% for SOXX and 0.44% for XLK—reflecting the reinvestment-focused nature of growth-heavy technology equities.

Who each is best for

  • SOXX: Fits investors seeking concentrated exposure to semiconductor cycle dynamics and willing to tolerate amplified swings in pursuit of potential outperformance in a defined subsector.
  • XLK: Fits investors who want technology equity exposure with smoother volatility, lower costs, and diversification across the entire S&P 500 tech footprint rather than a single industry.

Key risks to know

  • Concentration risk in SOXX. By definition, a semiconductor-only fund carries sector concentration far steeper than a broad tech fund. A downturn in chip demand, manufacturing, or supply chains hits SOXX directly; XLK's other holdings offer some buffer.
  • Amplified market sensitivity. SOXX's beta of 2.33 means losses and gains in bear and bull markets will be roughly 50% larger than XLK's. This amplification benefits upside but can compound drawdowns.
  • Semiconductor capex and commodity cycles. Chip stocks are vulnerable to swings in memory pricing, foundry utilization rates, and the timing of equipment spending—dynamics that don't affect software or services firms in XLK's portfolio.
  • Fee impact over time. The 0.25% annual fee gap compounds; over 20 years, that difference erodes meaningful basis points of total return on an equal dollar base.

Bottom line

If you want pure-play semiconductor exposure and can absorb higher volatility, SOXX delivers a tighter index bet. If you prefer technology diversification with lower fees and smoother price action, XLK's broader mandate and 0.08% expense ratio offer a gentler entry point. Past performance does not guarantee future results.

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

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These comparisons follow the Dividend Vision methodology.