Invesco PHLX Semiconductor ETF

SOXQ

Market cap $602M

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.

Semiconductor equities and related ETFs notched impressive performances in the first half of the year. They were buoyed by ongoing enthusiasm for the AI trade and post-Liberation Day resurgence by the Magnificent Seven.

Launched on 06/11/2021, 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.

Invesco PHLX Semiconductor ETF offers concentrated exposure to the semiconductor sector, but much of its portfolio is tied to non-AI markets, potentially exposing investors to broader market headwinds. AI growth has been muted by the broader decline in the industry, resulting in SOXQ underperforming the S&P 500 by a wide margin. Given the risks to the broader industry, investors may realize improved performance when investing in a broader index, offering similar exposure to top holdings like Nvidia and Broadcom shares.

Launched on 06/11/2021, 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.