The iShares Semiconductor ETF (SOXX 3.14%) and the Fidelity MSCI Information Technology Index ETF (FTEC 1.53%) differ most in sector focus, cost, and historical risk, giving each a distinct role for tech-focused investors.
SOXX focuses on U.S. semiconductor stocks, while FTEC tracks a broader U.S. tech index that encompasses hardware, software, and communications. For those weighing a pure-play semiconductor bet against a diversified tech allocation, the key contrasts come down to cost, concentration, and risk profile.
Snapshot (cost & size)
| Metric | SOXX | FTEC |
|---|---|---|
| Issuer | iShares | Fidelity |
| Expense ratio | 0.34% | 0.08% |
| 1-yr return (as of Dec. 30, 2025) | 37.57% | 19.97% |
| Dividend yield | 0.55% | 0.40% |
| Beta (5Y monthly) | 1.77 | 1.32 |
| AUM | $16.70 billion | $16.66 billion |
Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
FTEC offers a much lower expense ratio, undercutting SOXX by a wide margin. SOXX pays a slightly higher dividend, though the difference is modest. Cost-focused investors may prefer FTEC's lower fees, while SOXX has a slight edge for those interested in dividend income.
Performance & risk comparison
| Metric | SOXX | FTEC |
|---|---|---|
| Max drawdown (5 y) | -45.75% | -34.95% |
| Growth of $1,000 over 5 years | $2,461 | $2,176 |
SOXX delivered a stronger performance over the past five years, but it also saw a much deeper maximum drawdown. FTEC’s shallower drawdown signals less severe historical downside, reflecting its broader sector approach and lower volatility.
What's inside
FTEC holds 291 stocks and covers nearly all corners of the U.S. technology sector, including hardware, software, and communications, which helps limit its risk. The fund’s largest positions are Nvidia, Microsoft, and Apple. Its 12-year track record provides a long-term perspective across multiple tech cycles.
By contrast, SOXX is a concentrated play on semiconductors with just 30 holdings, all in the technology sector. Top positions include Nvidia, Advanced Micro Devices, and Micron Technology. This focus can amplify both gains and losses, especially when chip stocks are in or out of favor.
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What this means for investors
SOXX and FTEC differ primarily in their goals and portfolios, and the right one for you will depend on what you're looking to accomplish with a tech-focused ETF.
FTEC is much broader, encompassing the wider technology industry. That diversification gives it an edge during periods of market volatility, especially considering tech stocks are often hit hard during downturns. If the entire semiconductor sector takes a beating, FTEC will likely fare much better than SOXX.
That said, SOXX's hyperfocus on semiconductor stocks has historically led to greater returns. SOXX has outperformed FTEC in both 12-month and five-year total returns, and if the semiconductor industry continues to thrive with the advancement of AI technology, this ETF could have even more growth ahead.
If you're deciding between these two funds, the biggest decision you'll need to make is how much volatility and risk you're willing to tolerate. SOXX's lack of meaningful diversification can result in much more severe price swings. However, while FTEC's broader approach can help mitigate risk, it also limits its earning potential.
Both ETFs can be strong investments, but your goals and risk tolerance can make it easier to decide which one is the better fit for your portfolio.
Glossary
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
Semiconductors: Materials and companies involved in making chips essential for electronics and computing devices.
Drawdown: The largest decline from a fund’s peak value to its lowest point over a specific period.
Beta: A measure of an investment’s volatility compared to the overall market, typically the S&P 500.
Dividend yield: Annual dividends paid by a fund or stock, expressed as a percentage of its current price.
AUM (Assets Under Management): The total market value of assets that a fund manages on behalf of investors.
Concentration: The degree to which a fund’s assets are invested in a small number of holdings or sectors.
Sector exposure: The portion of a fund’s assets allocated to specific industries or sectors.
Total return: The investment’s price change plus all dividends and distributions, assuming those payouts are reinvested.
Max drawdown: The largest percentage drop from a fund’s highest to lowest value over a set period.
