If You Invest $5,000 in SOXX Today and Never Touch It, History Says It Could Be Worth This Much in 20 Years

Source Motley_fool

Key Points

  • The semiconductor sector has been one of the market's best performers over the past four years.

  • Since its 2001 inception, the iShares Semiconductor ETF (SOXX) has returned 14.7% annually.

  • Here's what that rate of return could translate into over the next two decades.

  • 10 stocks we like better than iShares Trust - iShares Semiconductor ETF ›

Investing in semiconductor stocks a few years ago looks like a genius move today. The artificial intelligence (AI) boom has turned the sector into one of the market's best performers.

It's dangerous to look at historical returns and use them as expectations going forward, especially for a sector that's performed as well as semiconductors. But it can at least provide a starting point.

Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »

The iShares Semiconductor ETF (NASDAQ: SOXX) is one of the largest in this category. It manages more than $46 billion and has returned an average of 14.7% per year since its 2001 inception.

Semiconductor chip fabrication.

Image source: Getty Images.

Using those numbers, a $5,000 investment in the iShares Semiconductor ETF at its inception, held until now, would have turned into just over $130,000.

If the fund is able to produce that same 14.7% annualized return over the next 20 years, that would turn a $5,000 investment into approximately $78,000.

Now there's a caveat to make with this example. A nearly 15% annual return over the course of a quarter-century is well above the long-term average for U.S. stocks. Those returns have been fueled largely by low interest rates, trillions of dollars of government debt spending, and, of course, the AI revolution. Those conditions are unlikely to continue, and investors might want to temper their expectations for what could happen over the next couple of decades.

But there's no question about the potential growth of the semiconductor sector as part of the next great technological advances. As these returns demonstrate, a buy-and-hold approach is usually the best path to long-term wealth creation.

Should you buy stock in iShares Trust - iShares Semiconductor ETF right now?

Before you buy stock in iShares Trust - iShares Semiconductor ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and iShares Trust - iShares Semiconductor ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $334,631!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,312,844!*

Now, it’s worth noting Stock Advisor’s total average return is 893% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of October 31, 2026.

David Dierking has positions in iShares Trust-iShares Semiconductor ETF. The Motley Fool has positions in and recommends iShares Trust-iShares Semiconductor ETF. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Musk and a Wall Street Billionaire Eye a Market Bitwise Says 99.9% of Americans Don't KnowElon Musk, billionaire investor Stan Druckenmiller and Bitwise Chief Investment Officer Matt Hougan all reacted on Thursday to the same deal. Intercontinental Exchange (ICE), owner of the New York Sto
Author  Beincrypto
Oct 30, Fri
Elon Musk, billionaire investor Stan Druckenmiller and Bitwise Chief Investment Officer Matt Hougan all reacted on Thursday to the same deal. Intercontinental Exchange (ICE), owner of the New York Sto
placeholder
Binance Hack: $2 Billion Drained, Circle and Tether Freeze, Crypto Markets ReactBinance has confirmed a major security incident, with more than $2 billion drained across wallets. Circle and Tether have reacted quickly to freeze the majority of the funds.The concern centers on an
Author  Beincrypto
Oct 30, Fri
Binance has confirmed a major security incident, with more than $2 billion drained across wallets. Circle and Tether have reacted quickly to freeze the majority of the funds.The concern centers on an
placeholder
Fed Holds Rates but Quietly Rewrites One Line. Bitcoin and Gold ReactThe Federal Reserve (Fed) kept interest rates on hold at 3.75% to 4% on Wednesday. But two of its 12 voters wanted a hike, and they said so on the record.That split matters for anyone with a mortgage,
Author  Beincrypto
Oct 29, Thu
The Federal Reserve (Fed) kept interest rates on hold at 3.75% to 4% on Wednesday. But two of its 12 voters wanted a hike, and they said so on the record.That split matters for anyone with a mortgage,
placeholder
Could Bitcoin Price Crash Like Silver? Warning Signs Are ShowingFor the second straight week, Bitcoin’s price closed below $83,000, a key support level to confirm a bullish trend. This confirms a fake-out, according to popular analyst Benjamin Cowen. The analyst n
Author  Beincrypto
Oct 29, Thu
For the second straight week, Bitcoin’s price closed below $83,000, a key support level to confirm a bullish trend. This confirms a fake-out, according to popular analyst Benjamin Cowen. The analyst n
placeholder
Fed Holds Rates, but Warsh Is Shrinking Its Rate-Setting CalendarFederal Reserve Chair Kevin Warsh held interest rates at 3.75% to 4.00% on Wednesday. He also said the Fed will shrink its rate-setting calendar, starting in 2027 with one meeting that skips rate vote
Author  Beincrypto
Oct 29, Thu
Federal Reserve Chair Kevin Warsh held interest rates at 3.75% to 4.00% on Wednesday. He also said the Fed will shrink its rate-setting calendar, starting in 2027 with one meeting that skips rate vote
goTop
quote