iShares Semiconductor ETF vs. iShares U.S. Technology ETF: Which Is the Better Buy Right Now?
Key Points
SOXX has a lower expense ratio and higher assets under management than IYW.
SOXX has delivered significantly higher one- and five-year total returns, but it's also experienced more severe volatility.
IYW holds roughly 150 stocks for broad sector coverage, while SOXX concentrates on just over 30 chip-related holdings.
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Both the iShares Semiconductor ETF (NASDAQ:SOXX) and the iShares U.S. Technology ETF (NYSEMKT:IYW) target the high-growth technology space, but their investment scopes vary significantly.
IYW offers a broad-market look at the sector, encompassing software, tech services, and hardware. In contrast, SOXX focuses narrowly on the chipmakers and equipment providers that form the backbone of modern computing infrastructure. Here's how to decide on the right ETF for you.
Snapshot (cost & size)
| Metric | IYW | SOXX |
|---|---|---|
| Issuer | iShares | iShares |
| Share price (as of Sept. 22, 2026) | $265.92 | $569.03 |
| Expense ratio | 0.37% | 0.33% |
| 1-yr return (as of Sept. 22, 2026) | 36.3% | 111.1% |
| Dividend yield | 0.10% | 0.29% |
| Beta (5Y monthly) | 1.50 | 2.33 |
| Assets under management (AUM) | $25.2 billion | $41.2 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
SOXX is slightly more affordable with a 0.33% expense ratio compared to 0.37% for IYW. It also offers a higher payout, though both yields remain well below the market average.
Performance & risk comparison
| Metric | IYW | SOXX |
|---|---|---|
| Max drawdown (5 yr) | -39.4% | -45.8% |
| Growth of $1,000 over 5 years (total return) | $2,575 | $3,809 |
What's inside
SOXX focuses exclusively on the technology sector, providing exposure to the 34 largest U.S.-listed semiconductor companies, including manufacturers of materials and providers of associated services. Its largest positions include Nvidia, Advanced Micro Devices, and Micron Technology. It was launched in 2001 and has paid $1.25 per share in dividends over the trailing 12 months.
IYW tracks a capped index of the Russell 1000 technology sector, measuring the performance of the broader tech market. It holds around 150 stocks across various subsectors, such as software and IT services. Its top holdings include Nvidia, Apple, and Microsoft. Launched in 2000, it has paid $0.25 per share in dividends over the trailing 12 months.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
IYW and SOXX both provide exposure to the technology industry, but their differences in scope and diversification result in two distinct approaches.
IYW is the broader option, offering exposure to the entire tech sector. Semiconductors and related equipment account for around 40% of the fund's holdings, but it also provides access to software and services, hardware and equipment, media and entertainment technology, and more.
SOXX, on the other hand, is a pure-play on semiconductors. This can lead to more lucrative returns when this subsector is thriving, but the lack of diversification can result in greater volatility during market downturns.
Semiconductors have been a hot commodity in recent years, driven by the rise of AI technology. If AI stocks continue their dominance, SOXX could have even more room to grow. However, if this sector stumbles, SOXX will likely fall harder than IYW.
The right fit for you will depend on what you're looking to achieve with an ETF. Investors seeking diversified exposure to the broader tech sector may prefer IYW's wider reach, while those looking exclusively for access to semiconductor stocks may prefer SOXX.
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Katie Brockman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Micron Technology, Microsoft, Nvidia, and iShares Trust - iShares Semiconductor ETF. The Motley Fool has a disclosure policy.
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