Invesco PHLX Semiconductor ETF

SOXQ

Market cap $912M

SMH and other semiconductor ETFs to gain as a $500B Taiwan-US chip deal fuels massive U.S. fab investment.

Launched on June 11, 2021, the Invesco PHLX Semiconductor ETF (SOXQ) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Semiconductors segment of the equity market.

AI-driven chip demand is fueling a major surge, and SOXX and other semiconductor ETFs give investors a diversified way to ride the momentum into 2026.

Invesco PHLX Semiconductor ETF (SOXQ) earns a buy rating, driven by top holdings poised to capture accelerating AI investment and growth. SOXQ offers the lowest expense ratio (0.19%) among peer semiconductor ETFs, with a concentrated portfolio delivering a 3-year average annual return of 45.94%. Top holdings—Broadcom, Nvidia, and AMD—anchor SOXQ's outperformance, benefiting from robust AI demand, strategic partnerships, and sector-leading revenue growth.

The Invesco PHLX Semiconductor ETF (SOXQ) was launched on June 11, 2021, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Semiconductors segment of the equity market.

How the US chip embargo may have helped China become a global semiconductor player. The battle between the US and China for chip dominance.

Semiconductor ETFs like XSD, SOXX and SMH hit 52-week highs as AI mega investments, NVIDIA's Intel deal & quantum contracts fuel sector momentum.

Matthew Benjamin has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, Nvidia, and Taiwan Semiconductor Manufacturing.

I rate Invesco PHLX Semiconductor ETF a buy, as it offers cheap exposure to the semiconductor sector, which is central to AI, 5G, and EV growth. Compared to SOXX, SOXQ has a lower expense ratio, more attractive valuation metrics, and has outperformed over recent timeframes. Risks include high concentration in top holdings and geopolitical tensions, but I believe SOXQ's positioning will deliver superior long-term returns.

Looking for broad exposure to the Technology - Semiconductors segment of the equity market? You should consider the Invesco PHLX Semiconductor ETF (SOXQ), a passively managed exchange traded fund launched on June 11, 2021.