Technology ETF Showdown: Is SOXX or IYW the Better Buy for Investors Right Now?
Technology ETF Showdown: Is SOXX or IYW the Better Buy for Investors Right Now?
Publish Date: 2026-06-07 16:56:00
Source Domain: www.fool.com
Both the iShares Semiconductor ETF (SOXX 10.44%)and the iShares U.S. Technology ETF (IYW 5.92%) target the U.S. tech sector, but they take different approaches.
While IYW tracks a broad index of technology companies, including software and internet giants, SOXX focuses exclusively on the hardware-heavy semiconductor industry.
This distinction in scope leads to different risk-reward profiles for growth-oriented investors who may be weighing broad tech exposure against a more concentrated play on the essential chips powering global innovation and artificial intelligence.
Snapshot (cost & size)
| Metric | IYW | SOXX |
|---|---|---|
| Issuer | iShares | iShares |
| Expense ratio | 0.38% | 0.34% |
| 1-yr return (as of June 7, 2026) | 47.7% | 149.9% |
| Dividend yield | 0.11% | 0.29% |
| Beta (5Y monthly) | 1.43 | 2.26 |
| Assets under management (AUM) | $25.2 billion | $38.4 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
SOXX is slightly more affordable with a lower expense ratio, and it also offers a higher dividend payout. These yield differences reflect the cash-flow characteristics of their underlying semiconductor and broad-tech holdings.
Performance & risk comparison
| Metric | IYW | SOXX |
|---|---|---|
| Max drawdown (5 yr) | -39.4% | -45.8% |
| Growth of $1,000 over 5 years (total return) | $2,624 | $3,859 |
What’s inside
SOXX targets 100% of its portfolio in the technology sector, with a specific focus on the semiconductor industry. It holds 30 stocks, and its largest positions include Micron Technology, Advanced Micro Devices, and Marvell Technology. The fund was launched in 2001 and has a trailing-12-month dividend of $1.67 per share.
In contrast, IYW offers broader reach with 139 holdings. It also focuses exclusively on the technology sector, and its largest positions include tech giants like Nvidia, Apple, and Alphabet. The fund was launched in 2000 and has a trailing-12-month dividend of $0.27 per…
