iShares Semiconductor ETF (SOXX) is an exchange-traded fund that seeks to track the performance of an index composed of U.S. companies involved in the semiconductor industry, including chip manufacturers, equipment producers, and essential technology suppliers for modern electronics. The ETF is managed by BlackRock and trades under the ticker SOXX on Nasdaq.
Classified as a U.S. equity ETF with a sector focus, SOXX aims to reflect, before fees and expenses, the aggregated performance of the stocks included in its benchmark index. To achieve this objective, the fund employs a passive management strategy, maintaining a portfolio that seeks to replicate the composition and weighting of the semiconductor index.
SOXX’s benchmark index consists of companies selected based on market capitalization within the semiconductor sector, weighted by float-adjusted market capitalization, and periodically reviewed for rebalancing.
Diversification and sector exposure
SOXX provides exposure to the semiconductor sector, with companies operating across the technology value chain, including:
Chip and processor manufacturers.
Semiconductor equipment producers.
Component and materials technology suppliers.
Structure and costs
Shares of SOXX are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).
The fund features an expense ratio consistent with technology sector ETFs, typical of niche-focused funds, and does not charge a performance fee. SOXX may make periodic income distributions, derived from dividends paid by companies in its portfolio. The ETF has a single share class and trades exclusively under the ticker SOXX.
History and evolution of the ETF
iShares Semiconductor ETF was launched in 2001, during a period of rapid ETF industry growth and increasing demand for thematic exposure to the technology sector.
Since its inception, SOXX has been used by institutional and individual investors seeking targeted exposure to the semiconductor industry, combining capital appreciation with participation in a key segment of the digital economy.
Between 2020 and 2024, the ETF reflected demand cycles for technology and semiconductors, influenced by macroeconomic developments, advances in artificial intelligence, electrification trends, global supply chain shifts, and changes in technology consumption, while maintaining high liquidity and broad adoption in sector allocation strategies.