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Nvidia is the poster child for semiconductor stocks, but any are afraid of the valuations and the single stock nature of using one stock as the proxy for a sector.
But semiconductors are a hugely important part of technological advancement be it AI, rockets into space or electric vehicles and as such is a mega-trend that investors can’t ignore.
The iShares Semiconductor ETF offers exposure to U.S. companies that design, manufacture, and distribute semiconductors. It holds 30 stocks.
The TER is a decent 0.3% and a very modest DY of only 0.63%, to be expected. Interestingly the sector is not that expensive with a PE of 35.6x and price-to-book of 5.5x. This is probably helped by the lower valuation stocks such as Intel who are struggling.
SOXX | Weekly chart | 14 October 2024
| ETF name | iShares Semiconductor ETF |
| Nasdaq code | SOXX |
| ETF issuer | Blackrock |
| Issue date | 10 July 2001 |
| Total investment cost | 0.35% |
| ETF Benchmark | Index composed of U.S.-listed equities in the semiconductor sector |
| Tax-free savings account | NO |
| ETF major holdings |
 SOXX top 6 holdings | 14 October 2024 |
| Market cap | US$15.2billion |
| Performance 1 year | +46.9 |
| Performance 3 years | +59.5% |
| Performance 5 years | +242.9% |
| Performance 10 years | +794.2% |
| Dividend yield | 0.63% |
ETF blog
At Just One Lap, we are big fans of passive investment using ETFs. In this weekly blog, we discuss ETFs on the local market and the factors you need to consider when choosing an ETF. If you have wondered how one ETF differs from another, this is where you can find out. We explain which index each ETF tracks, what type of portfolio could benefit from holding each ETF, and how the costs will affect your bottom line.
