SOXX vs. FTEC: Should Investors Choose Semiconductor Stocks or Tech Sector Diversification?
Key Points
SOXX is significantly more concentrated, holding only 30 stocks compared to nearly 300 within FTEC.
FTEC offers more affordable fees, with a significantly lower expense ratio than SOXX.
While SOXX has generated higher total returns, it's also experienced greater volatility over the last five years.
- 10 stocks we like better than iShares Trust - iShares Semiconductor ETF ›
The iShares Semiconductor ETF (NASDAQ:SOXX) and the Fidelity MSCI Information Technology Index ETF (NYSEMKT:FTEC) both target the technology sector, but their underlying mechanics differ.
While one focuses exclusively on the critical hardware that powers modern computing, the other captures a diverse range of software, services, and hardware giants. This distinction fundamentally affects concentration risk, volatility, and long-term performance potential for growth-oriented investors.
Snapshot (cost & size)
| Metric | FTEC | SOXX |
|---|---|---|
| Issuer | Fidelity | iShares |
| Share price (as of August 11, 2026) | $286.79 | $534.20 |
| Expense ratio | 0.08% | 0.33% |
| 1-yr return (as of August 11, 2026) | 38.5% | 119.0% |
| Dividend yield | 0.37% | 0.29% |
| Beta (5Y monthly) | 1.46 | 2.32 |
| Assets under management (AUM) | $19.9 billion | $44.7 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.
Cost-conscious investors may prefer FTEC, which is significantly more affordable on fees thanks to its lower expense ratio. For every $10,000 invested in either fund, investors can expect to pay $8 per year in fees with FTEC compared to $33 per year with SOXX.
Performance & risk comparison
| Metric | FTEC | SOXX |
|---|---|---|
| Max drawdown (5 yr) | -34.95% | -45.75% |
| Growth of $1,000 over 5 years (total return) | $2,436 | $3,602 |
What’s inside
SOXX is 100% focused on technology, specifically targeting the semiconductor industry. Its portfolio is highly concentrated with just 30 holdings, and its largest positions include Nvidia, Broadcom, and Advanced Micro Devices. The fund was launched in 2001, and it’s paid $1.47 per share in dividends over the trailing 12 months.
By contrast, FTEC holds nearly 300 stocks from all corners of the technology industry. Its largest positions include Nvidia, Apple, and Microsoft. This fund was launched in 2013 and has paid $1.00 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
SOXX and FTEC both target technology stocks, but their unique approaches may appeal to different investor goals.
FTEC is far more diversified than SOXX, offering exposure to the broader technology industry. This can help limit risk, because if the semiconductor sector falters, it will likely affect FTEC less than SOXX. With its milder max drawdown and lower beta, FTEC has historically experienced less severe volatility.
The flip side of this diversification, however, is that it can limit earning potential. Semiconductor stocks have skyrocketed over the past year, and while FTEC includes holdings in this sector, SOXX’s concentration has resulted in much higher one-year total returns.
Both funds can be smart buys, and choosing the right one for you will depend on your risk tolerance, goals, and portfolio gaps. For risk-averse investors or those seeking broad exposure to the overall tech sector, FTEC could be the better fit. Investors looking to invest solely in semiconductor stocks, however, may prefer SOXX’s more targeted approach.
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 $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!*
Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% 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 August 11, 2026.
Katie Brockman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Broadcom, Microsoft, Nvidia, and iShares Trust - iShares Semiconductor ETF. The Motley Fool has a disclosure policy.
Recommended Articles
