Quick Read – SOXQ has surged 86% this year and returned 329% over five years by concentrating assets in AI chipmakers like NVIDIA and Broadcom. – SOXQ’s 0.19% expense ratio beats SOXX on cost for essentially the same holdings, while tripling QQQ’s 110% five-year return on pure…
licon exposure. – Heavy concentration leaves SOXQ without ballast when AI capex slows, making it best as a 5-10% portfolio sleeve, not a standalone bet. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Invesco PHLX Semiconductor ETF didn’t make the cut. Grab the names FREE today
Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ) has roughly doubled this year, and that single fact is the reason to slow down rather than chase. SOXQ is up 89% year to date and 157% over the past year, which is what happens when an industry projected to clear $1.3 trillion in annual revenue this year runs into a memory supply shortage at the same time hyperscaler capex breaks records. The real question SOXQ poses is whether you want this particular slice of the AI engine, at this price, with this much concentration in five names.
What SOXQ actually owns The fund tracks the PHLX Semiconductor Sector index, holding 30 of the largest U.S.-listed semiconductor companies on a market-cap weighting. Top positions read like a roll call of the AI trade, NVIDIA (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO), AMD (NASDAQ:AMD), Micron (NASDAQ:MU), and ASML (NASDAQ:ASML). The top ten names carry 59% of assets, so this is effectively a leveraged bet on the handful of firms selling picks and shovels into the hyperscaler capex cycle, with a long tail of equipment and analog names along for the ride.