Key Points
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XLK is significantly cheaper to own and far larger than SOXX, but its recent returns have lagged the semiconductor-focused fund.
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SOXX is more volatile and suffered a deeper five-year drawdown, reflecting its narrow chip-sector tilt.
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XLK offers broader tech exposure, with mega-cap holdings like Nvidia, Apple, and Microsoft dominating its portfolio.
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Both the iShares Semiconductor ETF (NASDAQ:SOXX) and the State Street Technology Select Sector SPDR ETF (NYSEMKT:XLK) aim to capture U.S. technology growth, but their approaches differ: SOXX zeroes in on the semiconductor segment, while XLK provides diversified exposure across the entire technology sector.
For investors comparing these two, the choice comes down to cost, risk profile, and the breadth of tech exposure each fund delivers.
Snapshot (cost & size)MetricSOXXXLKIssueriSharesSPDRExpense ratio0.34%0.08%1-yr return (as of Jan. 2, 2026)45.63%24.13%Dividend yield0.55%0.53%AUM$17 billion$93 billionBeta (5Y monthly)1.771.26
Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
XLK offers a substantially lower expense ratio than SOXX, which could appeal to investors looking to minimize fees. Both funds offer similar dividend yields, so income-focused investors won’t notice a meaningful difference between the two in this regard.
Performance & risk comparisonMetricSOXXXLKGrowth of $1,000 over 5 years$2,483$2,220Max drawdown (5Y)-45.75%-33.56%
Over the last five years, SOXX delivered stronger growth than XLK, but it also experienced a much deeper maximum drawdown — reflecting its higher risk and narrower sector focus compared to XLK’s broader tech approach.
What’s inside
XLK tracks the performance of the Technology Select Sector Index, offering exposure to 70 leading U.S. technology stocks across hardware, software, IT services, and semiconductors.
Its top holdings — Nvidia, Apple, and Microsoft — collectively make up nearly 40% of assets, highlighting a mega-cap tilt. With 27 years of history and over $90 billion in assets under management (AUM), XLK is among the largest and most liquid sector ETFs available.
SOXX, by contrast, is laser-focused on the semiconductor industry, holding just 30 companies. Its largest positions include Nvidia, Advanced Micro Devices, and Micron Technology.
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What this means for investors
XLK and SOXX are both tech-centric funds, but they differ in their approaches and goals.
XLK is much broader, not only in its portfolio size (containing more than twice the number of stocks as SOXX), but in its diversification, too. It includes stocks from various corners of the technology sector, which can help mitigate its risk during periods of volatility.
SOXX, on the other hand, is devoted entirely to semiconductor stocks. This targeted approach can be both an advantage and a risk. When semiconductor companies are thriving, this ETF can significantly outperform the market. But when this segment of the market stumbles,