A Quick Overview of the iShares Semiconductor ETF
A semiconductor is a material product usually made of silicon that conducts electricity more than an insulator but less than a pure conductor. Semiconductors are found in thousands of electronics such as appliances, laptops, and phones. Semiconductors are considered the brains of modern electronics because our favorite products would not work without them. When it comes to gaining exposure to the leading companies listed in the United States that design, manufacture, and distribute semiconductors, there are multiple ETFs for that. The ETF of focus is the iShares Semiconductor ETF (SOXX).
SOXX is an ETF that provides exposure to United States listed companies that design, manufacture, and distribute semiconductors. As of August 10th, 2022, SOXX has net assets of $6.23 billion, a price per share of $410.29, and an expense ratio of 0.43%.
The top ten holdings of SOXX include NVIDIA, Broadcom, Intel, Qualcomm, Texas Instrument, AMD, Marvell Technology, KLA, ASML Holding, and Analog Devices. Over the past decade, SOXX has provided a total return of approximately 706% and an average annual total return of approximately 23%, with dividends reinvested.
Semiconductors are necessary for all of our electronic devices. With President Joe Biden’s signing of the bill to subsidize the United States semiconductor industry, it will help boost efforts to make the United States more competitive with China. The legislation will provide $52.7 billion in subsidies for United States semiconductor production and research. SOXX will be a clear benefiter of it. What do you think of SOXX? Let me know in the comments.