Soxx ETFs: A Comprehensive Guide to Investing

Soxx ETFs are a type of exchange-traded fund that tracks the performance of the Philadelphia Semiconductor Index.

These ETFs are designed to provide exposure to the semiconductor industry, which is a critical component of the tech sector.

The Philadelphia Semiconductor Index is a benchmark index that measures the performance of 30 US-listed companies involved in the semiconductor industry.

Investing in soxx ETFs can be a great way to diversify your portfolio and gain exposure to a growing industry.

The semiconductor industry is expected to continue growing, driven by increasing demand for technology and electronic devices.

Soxx ETFs offer a convenient way to invest in this industry, with many options available to suit different investment goals and risk tolerance.

Some popular soxx ETFs include the VanEck Vectors Semiconductor ETF and the Invesco PHLX Semiconductor ETF.

Investing in SOXX ETFs can provide targeted access to the U.S. semiconductor sector, which may benefit from powerful mega forces like the rise of AI and digital disruption.

The SOXX ETF is a passively managed fund that tracks the NYSE Semiconductor Index, composed of U.S. equities in the semiconductor sector, launched in 2001.

Gaining exposure to U.S. semiconductors is one of the key benefits of investing in SOXX ETFs, allowing you to tap into the growth potential of this sector.

The fund generally invests at least 80% of its assets in the component securities of its index, providing a concentrated exposure to the semiconductor sector.

Investing in SOXX ETFs can also complement your existing portfolio by providing a satellite exposure focused on companies across the full semiconductor value chain.

Expand your knowledge: Investing in Etfs for Dummies

Fees for SOXX ETFs are relatively low, with an expense ratio of 0.35%. This means that investors pay 0.35% of their investment in management fees and other expenses.

Management fees specifically account for 0.35% of the fund's assets under management (AUM). To put this in perspective, the average portfolio turnover rate for the Technology category is 53%, which can lead to higher expenses and lower after-tax returns.

The SOXX ETF has a portfolio turnover rate of 28%, indicating that it holds its assets for around 3.6 years on average. This is lower than the average turnover rate for the Technology category, which could result in lower expenses and potentially higher returns.

Here's a breakdown of the SOXX ETF's fees and expenses:

Distributions for the SOXX ETF are made annually, with a capital gain distribution frequency of annually and a net income ratio of 0.76%. This means that a significant portion of the fund's income is distributed to investors in the form of capital gains.

For your interest: Premium Income Etfs

Fees can be a significant consideration when investing in a fund or ETF. The management fee, a key expense, is typically a percentage of the fund's assets under management (AUM).

In the case of the iShares Semiconductor ETF (SOXX), the management fee is 0.35% of AUM, which is a relatively standard rate.

The expense ratio, another important fee, is also 0.35% for SOXX. This is the total cost of operating the fund, including management fees, administrative costs, and other expenses.

Here's a breakdown of the fees for SOXX:

It's worth noting that the 12b-1 fee, which is a distribution fee, is not applicable to SOXX. This means that investors won't be charged an additional fee for distribution expenses.

Distributions are an essential aspect of investing in funds, and understanding how they work can help you make informed decisions. Distributions can be made on a regular basis, such as monthly or annually.

Let's take a look at the different types of distributions. Some funds pay out capital gains, which can be a significant portion of the distribution. For example, in one ETF, the Long-Term Cap Gains were 5.1% of the total distribution.

The frequency of distributions can also vary. Some funds distribute dividends monthly, while others do it quarterly or annually. In one fund, the Dividend Distribution Frequency is Other, which means it's not a traditional monthly or quarterly distribution.

Here's a breakdown of the distribution frequencies for some funds:

The record date, ex-date, and payable date are also important dates to keep in mind when it comes to distributions. These dates indicate when the distribution will be recorded, when it will be excluded from the fund's net asset value, and when it will be paid out, respectively. For example, one ETF has a Record Date, Ex-Date, and Payable Date of 2023-02-15, 2023-02-20, and 2023-03-01, respectively.

The total distribution amount can also be a significant factor to consider. In one ETF, the Total Distribution was 5.6% of the fund's net asset value.

For another approach, see: Value vs Growth Etfs

The SOXX ETF offers a unique combination of risk and return, with a proportional semiconductor exposure that can result in good risk-adjusted returns. This is in contrast to other ETFs in the same space.

Historically, SOXX has lagged behind the SMH ETF in terms of performance, but it has less risk due to its lower concentration and geopolitical exposure. This makes it a more appealing option for investors looking to mitigate potential risks.

The calculated values for market value, weight, and notional value in SOXX are based on a third-party pricing vendor, but these values do not reflect the impact of systematic fair valuation.

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The holdings data you see reflects the investment book of record, which may differ from the accounting book of record used for the purposes of determining the Net Assets of the Fund.

The values shown for "market value", "weight", and "notional value" are based on a price provided by a third-party pricing vendor, known as the vendor price. This vendor price is not necessarily the price at which the Fund values the portfolio holding for the purposes of determining its net asset value, known as the valuation price.

The vendor price is as of the most recent date for which a price is available, which may not necessarily be as of the date shown above.

The iShares Semiconductor ETF, also known as SOXX, has a relatively low portfolio turnover rate of 28%, which is lower than the average for the Technology category.

This low turnover rate can help minimize expenses and potentially lead to higher after-tax returns. SOXX has a trailing NAV total return of 12.9% for 2024, which is a respectable performance.

In comparison to the Technology category, SOXX's return of 12.9% in 2024 ranked 84.79% within the category. This means that 15.21% of ETFs in the Technology category performed better than SOXX in 2024.

Here's a breakdown of SOXX's return ranking over different periods:

SOXX's performance has been impressive over the long term, with a 10-year return of 23.5% ranking in the top 5% of the Technology category.

The 52-week price range is a key metric for evaluating a fund's performance over time. It shows the lowest and highest prices the fund has traded at in the past year.

Looking at the chart, we can see that the fund's 52-week price range is between $10 and $15 per share. This indicates that the fund has experienced some volatility, but overall has maintained a stable value.

The fund's average price per share over the past 52 weeks is $12.50, which is right in the middle of the price range. This suggests that the fund has been relatively steady, with some ups and downs along the way.

The fund's price has fluctuated by as much as 25% over the past year, which is a significant swing. However, the fund's overall performance has been strong, with a return on investment of 15% over the past 12 months.

The iShares Semiconductor ETF, commonly referred to as SOXX, is a passively managed Sector Equity Technology exchange-traded fund (ETF) that was launched in 2001.

It seeks to track the investment results of the NYSE Semiconductor Index, which is composed of U.S. equities in the semiconductor sector. The fund generally invests at least 80% of its assets in the component securities of its index and in investments with similar economic characteristics.

SOXX is a non-diversified fund, meaning it can invest in a relatively small number of securities, and it may also invest up to 20% of its assets in certain futures, options, and swap contracts, cash, and cash equivalents.

The fund's investment objective is to provide investors with exposure to the semiconductor sector, which has been a rapidly growing industry in recent years.

Here are some key statistics about the SOXX ETF:

The SOXX ETF has a beta of 1.72, which means it is more volatile than the overall market, and a standard deviation of 33.5%, indicating a relatively high level of risk.

The chip sector is performing relatively weakly compared to the broader tech industry.

Nvidia's recent surge has not been enough to lift the entire sector, as semiconductor stocks are rising this month but still lagging behind the S&P 500.

The semiconductor sector led Tuesday's losses, with Nvidia losing nearly $110 billion in market cap.

Christopher Danely, Citi head of US semiconductor research, noted that auto industry woes are dragging down chip stocks. This is because many chip stocks are heavily reliant on the auto industry for sales.

Chip stocks continue their sector-wide slide, following a tech sell-off triggered by disappointing reports from some Magnificent 7 companies.

The iShares Semiconductor ETF (SOXX) has been on a bullish run, boasting a 25.16% gain year-to-date and a remarkable 45.12% rise over the past year. However, this growth has been accompanied by heightened volatility within the chip sector.

The iShares Semiconductor ETF offers diversified exposure to semiconductor companies, with a management fee of 0.35%, a beta of 1.59, and a P/B of 5.25x.

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The chip sector is a significant part of the broader tech industry, and its performance can have a ripple effect on the entire market. According to the iShares Semiconductor ETF (SOXX), the chip sector has been experiencing heightened volatility, with a nearly 3% drop on Wednesday.

Related reading: Blue Chip Etfs

This volatility is not surprising, given the sector's sensitivity to market fluctuations. The SOXX ETF has been tracking the performance of semiconductor stocks, which are known for their volatility.

The SOXX ETF is a popular benchmark for the chip sector, and its performance can be a good indicator of the sector's health. As of now, the SOXX ETF has a weighting of 100% in the Technology sector, indicating that it is a pure play on the chip industry.

Here's a breakdown of the SOXX ETF's performance across different sectors:

The SOXX ETF's performance is also influenced by the broader market trends, with the sector experiencing a relatively weak performance compared to the S&P 500, according to Bespoke Investment Group.

The SOXX, a semi ETF, is down 17% since early July, to $214.

Get ready if it drops to $199, as that's when some investors might see it as a buying opportunity.