The iShares Semiconductor ETF (NASDAQ:SOXX) offers specialized exposure to chipmakers with lower costs, while the iShares U.S. Technology ETF (NYSEMKT:IYW) provides a broader, lower-volatility play across the entire technology sector.
Investors looking for outsized growth often turn to the technology sector, but the level of concentration significantly impacts the risk profile. While the iShares Semiconductor ETF drills deep into a single industry, the iShares U.S. Technology ETF casts a wider net across software, hardware, and communication services. This comparison examines how these two funds from the same issuer balance growth potential against sector-specific volatility.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Side-by-side, these two iShares funds reveal how sector focus, yield, and volatility shape investor outcomes in tech. Explore their key differences.
The iShares Semiconductor ETF (SOXX +0.35%) offers specialized exposure to chipmakers with lower costs, while the iShares U.S. Technology ETF (IYW 0.54%) provides a broader, lower-volatility play across the entire technology sector.
Investors looking for outsized growth often turn to the technology sector, but the level of concentration significantly impacts the risk profile. While the iShares Semiconductor ETF drills deep into a single industry, the iShares U.S. Technology ETF casts a wider net across software, hardware, and communication services. This comparison examines how these two funds from the same issuer balance growth potential against sector-specific volatility.
Snapshot (cost & size)
| Metric | SOXX | IYW |
|---|---|---|
| Issuer | iShares | iShares |
| Expense ratio | 0.34% | 0.38% |
| 1-yr return (as of Apr. 27, 2026) | 148.0% | 53.7% |
| Dividend yield | 0.5% | 0.1% |
| Beta | 1.73 | 1.33 |
| AUM | $29.7 billion | $21.4 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The iShares Semiconductor ETF is slightly more affordable with a 0.34% expense ratio compared to 0.38% for the iShares U.S. Technology ETF. Investors seeking income may also prefer the semiconductor fund, as its trailing-12-month yield of 0.5% is higher than the 0.1% payout offered by the broader tech fund.
Performance & risk comparison
| Metric | SOXX | IYW |
|---|---|---|
| Max drawdown (5 yr) | (45.8%) | (39.4%) |
| Growth of $1,000 over 5 years (total return) | $3,299 | $2,356 |
What’s inside
The iShares U.S. Technology ETF holds 139 stocks, providing diversified exposure across the broader tech landscape. Its sector allocation is primarily technology at 82%, followed by communication services at 17% and a small 1% slice of industrials. Largest positions include Nvidia (NVDA 3.59%) at 17%, Apple (AAPL +0.41%) at 13.67%, and Alphabet (GOOGL +6.36%) at 7.04%. Launched in 2000, the fund has a trailing-12-month dividend of $0.27 per share. Its wider scope includes internet giants that may be classified as communication services rather than pure technology companies.
The iShares Semiconductor ETF is significantly more concentrated, tracking only 30 holdings that focus 100% on the semiconductor industry. Top holdings include Broadcom (AVGO +1.01%) at 8.05%, Advanced Micro Devices (AMD +0.39%) at 7.88%, and Micron Technology (MU 1.46%) at 7.32%. Launched in 2001, it has paid $1.67 per share over the trailing 12 months. This narrower focus on chip design and manufacturing contributes to its higher beta of 1.73, making it more sensitive to market movements than a broader tech index.
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What this means for investors
iShares offers ETFs for investors who want exposure to the hot field of artificial intelligence. Two exchange-traded funds in this camp are the iShares U.S. Technology ETF (IYW) and the iShares Semiconductor ETF (SOXX). Making a choice between this pair comes down to some key factors.
IYW has a slightly higher expense ratio, but offers broad exposure across the technology sector. This gives you stocks such as Google parent Alphabet, a major AI player, that isn’t available in SOXX.
Moreover, IYW delivers greater diversification, since you’re not dependent only on the semiconductor industry’s success to power your returns. This provides reduced volatility and risk, contributing to the ETF’s lower beta and max drawdown. IYW is ideal for those who seek AI exposure, but want to go more broadly across the tech sector to reduce reliance on a single industry.
SOXX’s focus solely on semiconductor stocks has been a boon to performance with an incredible one-year return of nearly 150%. Given the central role semiconductor companies, such as AMD and Broadcom, play in the AI sector, SOXX could continue to deliver outsized results.
On the flip side, if Wall Street sours on stocks in the sector or macroeconomic conditions impact the industry, the ETF’s performance can suffer. SOXX is best for investors who are comfortable with the concentrated risk in exchange for the opportunity for strong gains.
