{"id":71279,"date":"2026-01-31T17:30:53","date_gmt":"2026-01-31T20:30:53","guid":{"rendered":"https:\/\/tech.einnews.com\/article\/888301677"},"modified":"2026-01-31T17:30:53","modified_gmt":"2026-01-31T20:30:53","slug":"ftec-vs-soxx-is-broad-tech-diversification-better-than-targeted-semiconductor-exposure","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/01\/31\/ftec-vs-soxx-is-broad-tech-diversification-better-than-targeted-semiconductor-exposure\/","title":{"rendered":"FTEC vs. SOXX: Is Broad Tech Diversification Better Than Targeted Semiconductor Exposure?"},"content":{"rendered":"
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The iShares Semiconductor ETF<\/strong> (NASDAQ:SOXX)<\/span> and the Fidelity MSCI Information Technology Index ETF<\/strong> (NYSEMKT:FTEC)<\/span> both aim to give investors access to technology stocks, but their approaches diverge.<\/p>\n

SOXX focuses exclusively on U.S.-listed semiconductor companies, while FTEC tracks a broader range of the tech sector. This comparison looks at their fees, performance, risk, and what\u2019s actually inside each fund to help investors weigh their options.<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n
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Metric<\/p>\n<\/th>\n

\n

SOXX<\/p>\n<\/th>\n

\n

FTEC<\/p>\n<\/th>\n<\/tr>\n<\/thead>\n

\n

Issuer<\/p>\n<\/td>\n

\n

iShares<\/p>\n<\/td>\n

\n

Fidelity<\/p>\n<\/td>\n<\/tr>\n

\n

Expense ratio<\/p>\n<\/td>\n

\n

0.34%<\/p>\n<\/td>\n

\n

0.08%<\/p>\n<\/td>\n<\/tr>\n

\n

1-yr return (as of Jan. 27, 2026)<\/p>\n<\/td>\n

\n

52.84%<\/p>\n<\/td>\n

\n

20.80%<\/p>\n<\/td>\n<\/tr>\n

\n

Dividend yield<\/p>\n<\/td>\n

\n

0.57%<\/p>\n<\/td>\n

\n

0.43%<\/p>\n<\/td>\n<\/tr>\n

\n

Beta (5Y monthly)<\/p>\n<\/td>\n

\n

1.72<\/p>\n<\/td>\n

\n

1.28<\/p>\n<\/td>\n<\/tr>\n

\n

AUM<\/p>\n<\/td>\n

\n

$18 billion<\/p>\n<\/td>\n

\n

$17 billion<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.<\/em><\/p>\n

FTEC is more affordable on fees, charging a much lower expense ratio. In terms of income potential, however, SOXX has a slight edge with a higher dividend yield.<\/p>\n

\n\n\n\n\n\n\n
\n

Metric<\/p>\n<\/th>\n

\n

SOXX<\/p>\n<\/th>\n

\n

FTEC<\/p>\n<\/th>\n<\/tr>\n<\/thead>\n

\n

Max drawdown (5 y)<\/p>\n<\/td>\n

\n

-45.75%<\/p>\n<\/td>\n

\n

-34.95%<\/p>\n<\/td>\n<\/tr>\n

\n

Growth of $1,000 over 5 years<\/p>\n<\/td>\n

\n

$2,573<\/p>\n<\/td>\n

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$2,133<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

FTEC holds 289 stocks and covers a broad swath of the tech sector, with 98% of assets in technology stocks, 1% in communication services, and a small sliver in industrials. Its top positions include Nvidia<\/strong>, Microsoft<\/strong>, and Apple<\/strong>.<\/p>\n

While these top holdings make up a significant portion of the portfolio, FTEC offers more diversification across the industry overall. The fund has been around for over 12 years, providing a long track record for comparison.<\/p>\n

SOXX, in contrast, focuses exclusively on the semiconductor industry, with all holdings in the technology sector. Its top three stocks \u2014 Nvidia, Micron Technology<\/strong>, and Advanced Micro Devices<\/strong> \u2014 indicate a more concentrated approach, with just 30 holdings total.<\/p>\n

For more guidance on ETF investing, check out the full guide at this link<\/a>.<\/p>\n

FTEC and SOXX take very different approaches to covering the tech sector, and each could be appealing to investors depending on what you\u2019re looking to achieve.<\/p>\n

FTEC is much broader, with nearly 10 times as many holdings as SOXX. It covers a large swath of the tech industry, with stocks from a wide variety of subsectors \u2014 including semiconductors. This increased diversification can reduce the fund\u2019s risk and volatility, especially during market downturns.<\/p>\n

SOXX, on the other hand, consists solely of semiconductor stocks. This targeted approach can be both an advantage and a risk. When the semiconductor industry is thriving \u2014 as it has been over the last several years \u2014 this ETF can be lucrative. Case in point: SOXX has earned more than double FTEC\u2019s total returns over the last 12 months.<\/p>\n<\/p><\/div>\n

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The downside to a niche ETF like SOXX, however, is that the downturns tend to be more severe. SOXX has experienced a much steeper max drawdown, indicating more significant price fluctuations compared to FTEC.<\/p>\n

When choosing between the two funds, consider your goals. If you\u2019re looking for a broad tech fund that can help minimize the impact of volatility, FTEC may be your best bet. Investors who are willing to take on more risk for the chance to earn potentially lucrative returns, however, may prefer SOXX\u2019s targeted approach.<\/p>\n

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