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What are the best semiconductor ETFs?

AlphaOS investment intelligence · Research and education only — not investment advice · Updated Sep 27, 2026

About semiconductors

Direct answer

The best semiconductor ETFs by assets under management and liquidity are SOXX (iShares Semiconductor ETF), SMH (VanEck Semiconductor ETF), and SOXQ (Invesco PHLX Semiconductor ETF). SOXX tracks the ICE Semiconductor Index with ~30 holdings and over $12 billion in AUM, while SMH concentrates in 25 of the largest U.S.-listed semiconductor companies and commands over $22 billion in AUM, making it the largest in the space. SOXQ offers a lower-cost alternative with a 0.19% expense ratio. For leveraged exposure, SOXL (Direxion Daily Semiconductor Bull 3X) is the dominant vehicle, though it carries compounding risk. These funds collectively [research note] core positions in NVIDIA, TSMC, Broadcom, AMD, and Intel.

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Key Takeaways

  • SMH (VanEck Semiconductor ETF) is the largest semiconductor ETF by AUM at over $22 billion, with a 0.35% expense ratio and 25 concentrated holdings
  • SOXX (iShares Semiconductor ETF) is the second-largest with ~$12 billion AUM, tracking ~30 companies at a 0.35% expense ratio, offering slightly broader diversification
  • SOXQ (Invesco PHLX Semiconductor ETF) is the lowest-cost option at 0.19% expense ratio, tracking the same PHLX Semiconductor Sector Index that SOXX previously tracked
  • SOXL (Direxion Daily Semiconductor Bull 3X ETF) is the leading leveraged option and one of the most heavily traded ETFs in any category, but resets daily and is unsuitable for long-term holding
  • Top holdings across these ETFs are broadly consistent: NVIDIA, TSMC, Broadcom, Qualcomm, AMD, and Intel typically represent the largest weights
  • NVIDIA alone can represent 20-25% of SMH's portfolio weight due to its market cap dominance following the AI-driven valuation surge post-2023
  • Semiconductor ETFs exhibited extreme volatility in 2022-2023 cycles, with SOXX dropping over 40% in 2022 before recovering strongly in 2023-2024 on AI demand tailwinds
  • For international exposure, SOXX and SMH include TSMC (Taiwan) and ASML (Netherlands), giving partial geographic diversification beyond U.S.-listed pure-plays

Evidence & Analysis

  • SMH surpassed $22 billion in AUM as of 2024, making it the largest semiconductor-specific ETF globally by assets
  • SOXX tracks the ICE Semiconductor Index, which includes approximately 30 U.S.-listed semiconductor companies including chip designers, manufacturers, and equipment makers
  • SOXQ launched in 2021 by Invesco to compete on cost, charging 0.19% versus 0.35% for both SOXX and SMH
  • SOXL regularly trades hundreds of millions of shares daily and is among the top 10 most actively traded ETFs in the U.S. market
  • The Philadelphia Semiconductor Index (SOX), which underlies multiple ETFs, gained over 60% in 2023 driven by AI infrastructure spending and NVIDIA's earnings outperformance
  • TSMC and ASML are non-U.S. constituents present in major semiconductor ETFs, providing exposure to leading-edge foundry and lithography equipment segments

Key Companies

SMH

VanEck Semiconductor ETF

Largest semiconductor ETF by AUM (~$22B+), 25 holdings, 0.35% expense ratio — most liquid and widely traded

SOXX

iShares Semiconductor ETF

Second-largest semiconductor ETF (~$12B AUM), ~30 holdings, 0.35% expense ratio — broader index exposure

SOXQ

Invesco PHLX Semiconductor ETF

Lowest-cost semiconductor ETF at 0.19% expense ratio, tracks PHLX Semiconductor Sector Index

SOXL

Direxion Daily Semiconductor Bull 3X ETF

Leading leveraged semiconductor ETF (3x daily), extremely high volume, not suitable for long-term passive holding due to daily reset

NVDA

NVIDIA Corporation

Dominant holding across all major semiconductor ETFs, often 20-25% weight in SMH, driven by AI GPU market leadership

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