SOXX vs. FTEC: Should Investors Choose Semiconductor Stocks or Tech Sector Diversification?
The iShares Semiconductor ETF (SOXX +0.91%) and the Fidelity MSCI Information Technology Index ETF (FTEC -0.07%) 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.
