SOXX vs. FTEC: Should Investors Choose Semiconductor Stocks or Tech Sector Diversification?

SOXX is significantly more concentrated, holding only 30 stocks compared to nearly 300 within FTEC.

FTEC offers more affordable fees, with a significantly lower expense ratio than SOXX.

While SOXX has generated higher total returns, it's also experienced greater volatility over the last five years.

The iShares Semiconductor ETF (NASDAQ:SOXX) and the Fidelity MSCI Information Technology Index ETF (NYSEMKT:FTEC) 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.

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.

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.