Designed to provide broad exposure to the Technology ETFs category of the market, the iShares Semiconductor ETF (SOXX) is a smart beta exchange traded fund launched on 07/10/2001.
SOXX offers the best balance of AI exposure and diversification among semiconductor ETFs, avoiding overconcentration in single stocks like NVIDIA. The recent U.S. approval for NVIDIA and AMD to sell AI chips to China is a major catalyst, reviving growth prospects for the sector. SOXX remains volatile and exposed to geopolitical and sector-specific risks, so it should be used as part of a diversified, multi-thematic portfolio.
iShares Semiconductor ETF is up 13% year to date as the semi-industry is riding the strong fundamentals behind AI investments. The fund allocates AMD stock at the top spot with a higher position in analog semiconductor manufacturers. I believe that the SOXX ETF provides a 10% upside gap following the superior portfolio allocation.
If you're interested in broad exposure to the Technology - Semiconductors segment of the equity market, look no further than the iShares Semiconductor ETF (SOXX), a passively managed exchange traded fund launched on 07/10/2001.
Launched on 07/10/2001, the iShares Semiconductor ETF (SOXX) is a smart beta exchange traded fund offering broad exposure to the Technology ETFs category of the market.
The semiconductor sector is the main driver of the information technology segment of the S&P 500, and SOXX appears to represent it very well. Key catalysts include the U.S.–Saudi deal and easing U.S.–China trade tensions, which reduce sector risks and support bullish growth projections. So I believe this justifies the sector's early-year growth expectations, before the "Liberation Day."
Semiconductors are the beating heart of the artificial intelligence (AI) revolution. Graphics processing units (GPUs), AI accelerators, high-bandwidth memory, and networking equipment fill modern data centers, delivering the computing capacity developers need to create advanced AI software.
Semiconductors have been the best sub-sector to own over the past decade, with ETFs like SOXX and SMH offering outperforming total returns. I prefer SOXX over SMH due to its more diversified holdings. Despite recent pullbacks, semiconductors remain crucial for AI, autonomous vehicles, and other advanced technologies, making them a compelling investment at this drawdown that is only second to 2022.
Looking for broad exposure to the Technology - Semiconductors segment of the equity market? You should consider the iShares Semiconductor ETF (SOXX), a passively managed exchange traded fund launched on 07/10/2001.
The semiconductor market has been going through a downfall since the beginning of the year, with SOXX ETF down 12% to date. Amid the continued growth of the semiconductor industry, the fund has a reasonable exposure to benefit from the ICs demand. The mainstream adoption of AI technology is still loading and requires significant spending on high-performance hardware.
A smart beta exchange traded fund, the iShares Semiconductor ETF (SOXX) debuted on 07/10/2001, and offers broad exposure to the Technology ETFs category of the market.
Late last year, Morgan Stanley issued a forecast suggesting Amazon, Microsoft, Alphabet, and Meta Platforms could spend a combined $300 billion on data center infrastructure and chips to power their artificial intelligence (AI) ambitions during 2025.