Both the iShares Semiconductor ETF (NASDAQ:SOXX)and the iShares US Technology ETF (NYSEMKT:IYW) They target the US technology sector, but take different approaches.
While IYW tracks a broad index of technology companies, including software and Internet giants, SOXX focuses exclusively on the hardware-heavy semiconductor industry.
This distinction in scope leads to different risk-reward profiles for growth-oriented investors who may be weighing broad technology exposure against a more concentrated bet on the essential chips that drive global innovation and artificial intelligence.
Snapshot (cost and size)
|
Metric |
AIMJ |
SOXX |
|---|---|---|
|
Editor |
iShares |
iShares |
|
Expense ratio |
0.38% |
0.34% |
|
1 year return (starting June 7, 2026) |
47.7% |
149.9% |
|
Dividend yield |
0.11% |
0.29% |
|
Beta (5 years monthly) |
1.43 |
2.26 |
|
Assets under management (AUM) |
$25.2 billion |
$38.4 billion |
Beta measures price volatility relative to the S&P 500; Beta is calculated from five years’ monthly returns. The 1-year return represents the total return over the past 12 months. The dividend yield is the distribution yield for the trailing 12 months.
SOXX is a bit more affordable with a lower expense ratio and also offers a higher dividend payout. These performance differences reflect the cash flow characteristics of their underlying semiconductor and broad technology holdings.
Return and Risk Comparison
|
Metric |
AIMJ |
SOXX |
|---|---|---|
|
Maximum reduction (5 years) |
-39.4% |
-45.8% |
|
$1,000 growth in 5 years (total return) |
$2,624 |
$3,859 |
What’s inside?
SOXX focuses 100% of its portfolio on the technology sector, with special attention to the semiconductor industry. He has 30 stocks and his largest holdings include Micron technology, Advanced Microdevicesand Marvel Technology. The fund was launched in 2001 and has a trailing 12-month dividend of $1.67 per share.
In contrast, IYW offers a broader reach with 139 holdings. It also focuses exclusively on the technology sector, and its most important positions include technology giants such as NVIDIA, Appleand Alphabet. The fund was launched in 2000 and has a trailing 12-month dividend of $0.27 per share.
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What this means for investors
SOXX is the more concentrated ETF of the two, as it focuses solely on semiconductor stocks. This has proven to be a lucrative approach, as these stocks have skyrocketed in recent years with the advancement of artificial intelligence technology. If AI continues to thrive, SOXX could be poised for significant growth.
However, if the AI ​​fails, SOXX may be affected much more than IYW. Although SOXX has outperformed IYW in one- and five-year total returns, it has also seen a much steeper top drawdown and higher beta, suggesting more severe near-term volatility.