iShares Semiconductor ETF (SOXX): Complete Beginner's Guide
iShares Semiconductor ETF (SOXX) is a semiconductors ETF from BlackRock with an expense ratio of 0.35% and $14.0B in assets under management. Our Beginner Suitability Score: 7/10 (Moderate). 5-year annualized return: 28.20%.
Last updated: April 2026
BlackRock • Semiconductors
Expense Ratio
0.35%
AUM
$14.0B
Dividend Yield
0.60%
Inception
2001
Beginner Score
7/10
What is iShares Semiconductor ETF?
SOXX tracks the ICE Semiconductor Index, investing in 30 of the largest U.S.-listed semiconductor companies that design and manufacture chips. Semiconductors power everything from smartphones to data centers to AI systems. Beginners interested in the chip industry find SOXX appealing because it provides diversified exposure to this critical technology subsector rather than betting on a single chipmaker.
SOXX is managed by BlackRock and has been available since 2001. With $14.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.35%, which means for every $10,000 you invest, you pay approximately $35 per year in management fees.
SOXX at a Glance — Key Metrics
| Expense Ratio | 0.35% |
| Total Holdings | 30 |
| P/E Ratio | 30.5 |
| Beta | 1.35 |
| Dividend Yield | 0.60% |
| AUM | $14.0B |
| Inception Year | 2001 |
| Issuer | BlackRock |
Top 10 Holdings in SOXX
SOXX holds 30 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | NVIDIA Corp. | NVDA | 9.20% |
| 2 | Broadcom Inc. | AVGO | 8.80% |
| 3 | Advanced Micro Devices Inc. | AMD | 7.50% |
| 4 | Qualcomm Inc. | QCOM | 6.50% |
| 5 | Texas Instruments Inc. | TXN | 5.80% |
| 6 | Applied Materials Inc. | AMAT | 5.20% |
| 7 | Lam Research Corp. | LRCX | 4.80% |
| 8 | KLA Corp. | KLAC | 4.50% |
| 9 | Marvell Technology Inc. | MRVL | 4.20% |
| 10 | Intel Corp. | INTC | 3.80% |
SOXX's top holding is NVIDIA Corp. (NVDA) at 9.20%, followed by Broadcom Inc. (AVGO) at 8.80% and Advanced Micro Devices Inc. (AMD) at 7.50%. The top 10 holdings account for 60.30% of the fund's 30 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | NVIDIA Corp. | NVDA | 9.20% |
| 2 | Broadcom Inc. | AVGO | 8.80% |
| 3 | Advanced Micro Devices Inc. | AMD | 7.50% |
| 4 | Qualcomm Inc. | QCOM | 6.50% |
| 5 | Texas Instruments Inc. | TXN | 5.80% |
| 6 | Applied Materials Inc. | AMAT | 5.20% |
| 7 | Lam Research Corp. | LRCX | 4.80% |
| 8 | KLA Corp. | KLAC | 4.50% |
| 9 | Marvell Technology Inc. | MRVL | 4.20% |
| 10 | Intel Corp. | INTC | 3.80% |
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SOXX Performance History
Here's how SOXX has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
4.20%
1 Year
38.50%
3 Year
19.80%
5 Year
28.20%
10 Year
24.50%
SOXX has returned 28.20% annualized over 5 years and 24.50% over 10 years. YTD return is 4.20%.
View data table
| Period | Return |
|---|---|
| YTD | 4.20% |
| 1 Year | 38.50% |
| 3 Year | 19.80% |
| 5 Year | 28.20% |
| 10 Year | 24.50% |
Beginner Suitability Score: 7/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
SOXX scores 7/10 because it has very low fees, can be more volatile than the broader market, focuses on 30 selected holdings, and has been available since 2001, giving it a proven track record.
How to Buy SOXX — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "SOXX" — Use the search bar in your brokerage platform to find iShares Semiconductor ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
SOXX Sector Allocation
Here's how SOXX distributes its investments across different sectors of the economy:
SOXX's largest sector allocation is Semiconductor Design at 42.5%, followed by Semiconductor Equipment at 19.5% and Integrated Circuits at 14.8%.
View data table
| Sector | Weight |
|---|---|
| Semiconductor Design | 42.5% |
| Semiconductor Equipment | 19.5% |
| Integrated Circuits | 14.8% |
| Memory & Storage | 8.2% |
| Analog Semiconductors | 6.8% |
| Foundry & Manufacturing | 4.5% |
| Specialty Semiconductors | 2.5% |
| Other Semiconductor | 1.2% |
Dollar Cost Averaging Into SOXX
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With SOXX's expense ratio of 0.35%, a $10,000 investment would lose approximately $2,930 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.
SOXX's expense ratio of 0.35% costs $2,930 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $43,680.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,457 | $236 |
| 10 | $21,589 | $20,900 | $689 |
| 15 | $31,722 | $30,214 | $1,508 |
| 20 | $46,610 | $43,680 | $2,930 |
Pros and Cons of SOXX
Pros
- ✓Focused exposure to the semiconductor industry, which underpins AI, cloud computing, and 5G growth
- ✓Modified equal-weight approach reduces concentration risk compared to cap-weighted tech funds
- ✓Exceptional long-term returns reflecting the secular growth of chip demand worldwide
- ✓Includes both chip designers and equipment makers, covering the full semiconductor value chain
Cons
- ✗Very high beta of 1.35 means extreme volatility during market corrections and chip cycle downturns
- ✗Expense ratio of 0.35% is significantly more expensive than broad market index funds
- ✗Semiconductor industry is highly cyclical, with boom-bust cycles that amplify losses
SOXX vs Similar ETFs
See how SOXX stacks up against similar funds:
Frequently Asked Questions
Is SOXX a good ETF for beginners?▾
SOXX has a Beginner Suitability Score of 7/10 on our scale. This makes it a strong choice for new investors due to its low fees and focused strategy.
What is the expense ratio of SOXX?▾
SOXX has an expense ratio of 0.35%. This means for every $10,000 you invest, you pay approximately $35 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in SOXX?▾
You can invest in SOXX with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does SOXX pay dividends?▾
Yes, SOXX pays dividends with a current yield of approximately 0.60%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in SOXX?▾
The top holdings in SOXX include NVIDIA Corp. (9.20%), Broadcom Inc. (8.80%), Advanced Micro Devices Inc. (7.50%), and more. The fund holds 30 total positions, providing focused exposure to selected companies.
What sectors does SOXX invest in?▾
SOXX's largest sector allocations are Semiconductor Design (42.50%), Semiconductor Equipment (19.50%), Integrated Circuits (14.80%). This sector distribution shows a focus on semiconductor design stocks.
How much do SOXX's fees cost over time?▾
With an expense ratio of 0.35%, a $10,000 investment in SOXX would lose approximately $2,930 to fees over 20 years (assuming 8% annual returns). Consider whether the fund's strategy justifies these costs.