The iShares Semiconductor ETF (SOXX) and State Street Technology Select Sector SPDR ETF (XLK) offer different levels of sector focus and risk within the U.S. technology sector. SOXX focuses on semiconductor companies, while XLK covers software, hardware, and IT services. XLK has a lower expense ratio of 0.08% compared to SOXX’s 0.34% and a 1-yr return of 23.2% versus SOXX’s 42.0%. XLK holds about 70 stocks with top positions in Nvidia, Apple, and Microsoft, while SOXX is made up of 30 positions focused on semiconductors. XLK may be more suitable for conservative investors due to its lower fees and broader exposure, while SOXX offers higher returns for aggressive investors.
Read more at Yahoo Finance: SOXX Delivered Larger Gains Than XLK, but With Greater Risk and Volatility
