Should You Invest in the Invesco PHLX Semiconductor ETF (SOXQ)?

The Invesco PHLX Semiconductor ETF (SOXQ), a passively managed fund launched in 2021, offers exposure to the semiconductor sector and has amassed over $471 million in assets. SOXQ's largest holdings include Nvidia (11.95%), Broadcom, and Taiwan Semiconductor, and it carries a low expense ratio of 0.19%; the fund is up 1.40% YTD but down 4.36% over the last year. With a Zacks ETF Rank of 2 (Buy), SOXQ is positioned as an attractive option for investors seeking exposure to the technology sector, though alternatives like SOXX and SMH exist with larger asset bases and slightly higher expense ratios.

Analysis

The Invesco PHLX Semiconductor ETF (SOXQ), launched on June 11, 2021, offers passively managed exposure to the 30 largest U.S.-listed semiconductor companies by tracking the PHLX SEMICONDUCTOR SECTOR INDEX. With assets under management exceeding $471.14 million, SOXQ is recognized for its low annual operating expense ratio of 0.19%, positioning it as one of the least expensive products in its category, and it offers a 12-month trailing dividend yield of 0.67%. The Technology - Semiconductors sector, to which SOXQ provides 100% exposure, is currently ranked in the top 38% by Zacks Industry classification. The ETF's portfolio is notably concentrated, with the top 10 holdings, including Nvidia Corp (11.95%), Broadcom Inc, and Taiwan Semiconductor Manufacturing Co Ltd Adr, accounting for approximately 60.63% of total assets. As of June 9, 2025, SOXQ has recorded a year-to-date gain of 1.40% but experienced a decline of 4.36% over the last year, trading within a 52-week range of $28.07 to $46.54. The fund exhibits higher volatility, evidenced by a beta of 1.52 and a three-year trailing standard deviation of 37.08%. Despite this, SOXQ holds a Zacks ETF Rank of 2 (Buy), indicating a positive outlook based on factors such as expected asset class return and momentum. Alternative ETFs in this space include the iShares Semiconductor ETF (SOXX) and VanEck Semiconductor ETF (SMH), which have substantially larger AUMs ($12.33 billion and $23.71 billion, respectively) but also higher expense ratios of 0.35%.

Key Decisions for Investors

• Given its Zacks ETF Rank of 2 (Buy) and a competitive expense ratio of 0.19%, investors seeking targeted exposure to the U.S. semiconductor market may find SOXQ an attractive and cost-efficient option.