The US-traded iShares Semiconductor ETF (SOXX US) is the benchmark US-listed semiconductor vehicle, the one professional investors reach for first when they want to express a view on the chip cycle. Managed by BlackRock and launched back in 2001, it has more than two decades of history and the liquidity and AUM to match – its AUM are ~57x larger than the ASX-listed SEMI ETF.
SOXX tracks the NYSE Semiconductor Index, which includes chip designers, manufacturers, and distributors. The fund holds ~30 securities, with concentration in the top names being both a strength and a risk — when the AI infrastructure trade is firing, SOXX amplifies the move; when it turns, the drawdowns are sharp as we saw in 2024/5 when the ETF corrected ~45%. The 1-year return of 141% is eye catching, though keep in mind that’s relative to the Liberation Day lows in April 2025. However, this is a clear illustration of the sharp uptick and sustained momentum in chip stocks in the past 12 months.
Similar to the SEMI ERTF, it’s important to recognise the concentration risk here, and that SOXX is a cyclical instrument in nature. It has historically peaked well before broader tech in a downturn and bounced first coming out of one, making timing and position sizing more important here than in a diversified AI ETF.
- We like the SOXX ETF seeing further strong performance through 2026.
