The SPDR S&P Semiconductor ETF (SOXQ) reported holdings data on July 6, 2026, confirming its portfolio of 35 U.S.-listed semiconductor companies with total net assets of $9.4 billion. The fund tracks the S&P Semiconductor Select Industry Index and provides concentrated exposure to the chip sector. Its largest individual holdings, including Nvidia and Broadcom, command a significant portion of the fund's weighting.
Context — [why this matters now]
Semiconductor stocks have become pivotal to global equity performance, driven by demand for artificial intelligence and high-performance computing hardware. The SOXQ ETF offers a direct, liquid vehicle for institutional and retail investors to access this theme without picking individual stocks. The fund's monthly reconstitution and rebalancing schedule, based on the S&P index methodology, ensures it reflects current market dynamics.
The Philadelphia Semiconductor Index (SOX), a broader industry benchmark, has seen significant volatility over the past five years, ranging from a low near 2,100 in October 2022 to a high above 5,300 in 2025. This volatility underscores the cyclical nature of the sector. Current analysis focuses on the sustainability of the AI-driven capex cycle and its impact on chipmakers' earnings.
Data — [what the numbers show]
SOXQ's portfolio is heavily concentrated in its top ten holdings, which represent approximately 60% of the fund's total assets. The ETF holds an equal-weighted allocation across its 35 constituents at each rebalancing, though price appreciation leads to drift. The fund's expense ratio is 0.35%, which is competitive against similar sector-specific products.
| Metric | SOXQ | Peer ETF: SMH |
|---|
| Number of Holdings | 35 | 25 |
| Expense Ratio | 0.35% | 0.35% |
| 12-Month Yield | 0.65% | 0.58% |
| Assets Under Management | $9.4B | $21.8B |
The fund's three-month average daily trading volume exceeds 150,000 shares, providing ample liquidity for large orders. The portfolio's price-to-earnings ratio is 28.5, a premium to the S&P 500's 22.1, reflecting growth expectations for the semiconductor industry.
Analysis — [what it means for markets / sectors / tickers]
SOXQ's composition highlights the bifurcation within the semiconductor sector between AI-centric designers and legacy hardware manufacturers. Companies like Nvidia and Advanced Micro Devices benefit directly from the fund's flows due to their large weights. This concentrated exposure means SOXQ's performance is highly correlated with the fortunes of a few mega-cap chip stocks.
A key risk is the fund's sensitivity to cyclical downturns in semiconductor demand, which historically occur every three to four years. The last significant downturn in 2022 saw the SOX index decline over 35% from peak to trough. Institutional positioning data shows hedge funds have increased long exposure to semiconductor ETFs like SOXQ by 15% year-to-date, betting on the continuation of the AI investment cycle. Conversely, memory chip manufacturers like Micron Technology face margin pressure from pricing swings, which impacts their weighting within the fund.
Outlook — [what to watch next]
The next significant catalyst for SOXQ constituents is the Q2 2026 earnings season, commencing with Taiwan Semiconductor Manufacturing Company on July 13. Guidance on AI chip demand and capital expenditure plans will be critical. The VanEck Semiconductor ETF (SMH), a key competitor, reports its quarterly rebalance on July 20, which may highlight diverging strategies.
Technical analysts are watching the $65.50 level as a key support zone for SOXQ, corresponding to its 200-day moving average. A break below this level on high volume could signal a broader sector rotation. The Federal Open Market Committee's meeting on July 26 will also be monitored for any commentary on economic strength that could influence growth-sensitive tech stocks.
Frequently Asked Questions
What is the difference between SOXQ and the SOXX ETF?
SOXQ tracks the S&P Semiconductor Select Industry Index, which holds 35 stocks and is rebalanced monthly. The iShares PHLX Semiconductor ETF (SOXX) tracks the broader Philadelphia Semiconductor Index, which contains 30 stocks and uses a modified market-cap weighting methodology. The primary difference is the index provider and the specific rules governing constituent selection and weighting, which can lead to performance divergence.
How often does SOXQ rebalance its holdings?
SOXQ's underlying index, the S&P Semiconductor Select Industry Index, is rebalanced quarterly each March, June, September, and December. The fund also conducts a full reconstitution of its holdings once per year. Between these events, weightings can drift from their target as stock prices fluctuate, which is a common characteristic of passively managed index funds.
Is SOXQ a good investment for dividend income?
SOXQ has a trailing 12-month dividend yield of 0.65%, which is lower than the S&P 500's average yield of approximately 1.4%. Semiconductor companies typically reinvest a large portion of their cash flow into research, development, and capital expenditure to maintain a competitive edge, resulting in lower dividend payouts. The fund is primarily suited for investors seeking capital appreciation from the growth of the semiconductor sector rather than income generation.
Bottom Line
SOXQ offers concentrated, liquid exposure to the volatile but high-growth U.S. semiconductor industry.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
