Exploring ETFs Similar to SOXX: A Detailed Financial Analysis

The iShares Semiconductor ETF (SOXX) is a popular choice for investors seeking exposure to the semiconductor sector, which has seen explosive growth due to advancements in technologies like artificial intelligence, cloud computing, and high-performance computing chips. However, for investors looking to diversify or compare similar ETFs, several other options offer comparable exposure to this booming sector.

1. VanEck Semiconductor ETF/ETFs similar to SOXX (SMH)

The VanEck Semiconductor ETF (SMH) is the most comparable to SOXX. Both ETFs focus heavily on semiconductor companies, but SMH has a slightly higher concentration in key players like NVIDIA (15.1% of SMH compared to 9.8% in SOXX). SMH tracks the MVIS US Listed Semiconductor 25 Index and holds fewer companies (around 26) compared to SOXX, making it more concentrated. This can lead to higher volatility, especially when one of the top stocks underperforms. Despite this, SMH has posted higher short-term performance, with a one-year return of over 54% compared to 46.3% for SOXX​.

Key Features:

• Top Holdings: Nvidia, Taiwan Semiconductor, ASML
• Expense Ratio: 0.35%
• Performance: Higher one-year return but more concentrated holdings

2. SPDR S&P Semiconductor ETF/ETFs similar to SOXX (XSD)

The SPDR S&P Semiconductor ETF (XSD) offers a more equal-weighted approach to the semiconductor industry. Unlike SOXX and SMH, XSD is less top-heavy and gives smaller companies more representation. This approach offers greater diversification but also potentially lower exposure to giants like NVIDIA and Broadcom. XSD has returned around 35% over the past year and has an expense ratio of 0.35%, making it a more balanced option for investors looking for broader exposure to the semiconductor industry​.

Key Features:

• Equal-Weighted Index: Greater diversification
• Expense Ratio: 0.35%
• Performance: More stable but with less upside potential from market leaders

3. First Trust Nasdaq Semiconductor ETF (FTXL)

The First Trust Nasdaq Semiconductor ETF (FTXL) is another option, focusing on the top semiconductor companies listed on the Nasdaq. FTXL has a higher expense ratio of 0.60%, but it provides a broader exposure similar to SOXX. The fund’s performance has been strong, with a one-year return of over 35%, although it lags slightly behind both SMH and SOXX.

Key Features:

• Focused on Nasdaq Listings
• Expense Ratio: 0.60%
• Performance: Solid returns but higher costs

Conclusion:

For investors comparing SOXX with similar ETFs, SMH stands out for its slightly higher concentration in key semiconductor players like Nvidia and Taiwan Semiconductor. This results in higher short-term performance but also comes with increased volatility. On the other hand, XSD offers a more diversified approach, while FTXL provides exposure similar to SOXX with a focus on Nasdaq-listed companies. The choice between these ETFs depends on whether you prefer concentrated exposure with higher potential returns (SMH), broader diversification (XSD), or a balanced approach with reasonable costs (SOXX).

Each of these ETFs offers solid exposure to the booming semiconductor industry, making them all strong contenders for investors seeking growth in this sector. Stay ahead with live signals today.