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SOXQ - ETF AI Analysis

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SOXQ

Invesco PHLX Semiconductor ETF (SOXQ)

Rating:75Outperform
Price Target:
SOXQ, the Invesco PHLX Semiconductor ETF, has a solid overall rating that reflects its strong exposure to leading semiconductor names benefiting from long-term AI and data center growth. Top holdings like Nvidia, Broadcom, Micron, and ASML support the fund’s quality through robust financial performance, positive earnings sentiment, and strategic positioning in high-demand chip and equipment markets. The main risk is the fund’s concentration in the semiconductor sector, where high valuations and regulatory or trade-related challenges—especially involving China—could increase volatility and limit upside at times.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains over the past year-to-date and in recent months, indicating solid momentum in its holdings.
Leading Semiconductor Holdings
Many of the top positions, including major chip designers and equipment makers, have delivered strong year-to-date results, helping drive the fund’s returns.
Low Expense Ratio
The fund charges a relatively low management fee, which helps investors keep more of their returns over time.
Negative Factors
High Sector Concentration
Almost all of the ETF’s assets are in the technology sector, so it is heavily exposed to swings in the semiconductor industry.
Limited Geographic Diversification
With nearly all holdings based in the U.S., the fund offers little geographic diversification if the domestic market weakens.
Top Holdings Concentration Risk
A small number of large semiconductor stocks make up a significant share of the portfolio, increasing the impact if any of these companies stumble.

SOXQ vs. SPDR S&P 500 ETF (SPY)

SOXQ Summary

The Invesco PHLX Semiconductor ETF (SOXQ) tracks the PHLX Semiconductor Sector Index, focusing on companies that design and make computer chips and related technology. Its holdings include well-known names like Nvidia and Broadcom, along with other major U.S. chip makers. Investors might consider SOXQ if they want targeted growth potential from trends like artificial intelligence, cloud computing, and 5G, while still spreading money across many semiconductor companies instead of picking just one stock. A key risk is that it is heavily concentrated in the semiconductor industry, so its price can swing sharply with tech sector ups and downs.
How much will it cost me?The Invesco PHLX Semiconductor ETF (SOXQ) has an expense ratio of 0.19%, meaning you’ll pay $1.90 per year for every $1,000 invested. This is lower than average for ETFs because it is passively managed, tracking the PHLX Semiconductor Sector Index rather than relying on active stock picking.
What would affect this ETF?The Invesco PHLX Semiconductor ETF (SOXQ) could benefit from growing demand for semiconductors driven by advancements in AI, cloud computing, 5G, and IoT technologies, as well as strong performance from top holdings like Nvidia and AMD. However, the ETF may face challenges from potential supply chain disruptions, regulatory changes, or economic slowdowns that impact technology spending. Additionally, rising interest rates could negatively affect growth-focused sectors like semiconductors.

SOXQ Top 10 Holdings

SOXQ is a pure play on U.S. chipmakers, and its story right now is all about AI-fueled momentum. Nvidia and Broadcom are the twin engines, with both stocks rising on strong demand for AI and data center chips. Micron and Marvell add extra thrust, riding upbeat earnings and optimism around high-bandwidth memory and networking. Intel and AMD, while also climbing, are more of a mixed bag, with valuation and profitability concerns occasionally tapping the brakes. Overall, this ETF is heavily concentrated in Big Tech semiconductors, with little diversification beyond the U.S. chip space.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nvidia11.37%$177.72M$5.06T99.22%
76
Outperform
Broadcom10.14%$158.53M$2.00T117.28%
76
Outperform
Micron7.89%$123.26M$560.17B567.72%
79
Outperform
Marvell6.01%$93.86M$143.68B169.52%
76
Outperform
Intel5.78%$90.29M$414.43B314.38%
64
Neutral
Advanced Micro Devices5.18%$81.00M$567.05B247.16%
73
Outperform
Texas Instruments3.94%$61.56M$252.33B65.91%
78
Outperform
KLA3.86%$60.32M$253.63B173.88%
77
Outperform
Monolithic Power3.55%$55.56M$80.16B171.28%
75
Outperform
Lam Research3.44%$53.75M$334.88B262.54%
77
Outperform

SOXQ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
66.97
Positive
100DMA
63.57
Positive
200DMA
56.64
Positive
Market Momentum
MACD
4.94
Negative
RSI
75.77
Negative
STOCH
88.56
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SOXQ, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 74.75, equal to the 50-day MA of 66.97, and equal to the 200-day MA of 56.64, indicating a bullish trend. The MACD of 4.94 indicates Negative momentum. The RSI at 75.77 is Negative, neither overbought nor oversold. The STOCH value of 88.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOXQ.

SOXQ Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.61B0.19%
75
Outperform
$4.52B0.40%
71
Outperform
$2.97B0.55%
73
Outperform
$2.31B0.35%
66
Neutral
$2.06B0.60%
74
Outperform
$1.89B0.56%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SOXQ
Invesco PHLX Semiconductor ETF
83.35
49.23
144.28%
RSPT
Invesco S&P 500 Equal Weight Technology ETF
QTEC
First Trust NASDAQ-100 Technology Sector Index Fund
XSD
SPDR S&P Semiconductor ETF
FTXL
First Trust Nasdaq Semiconductor ETF
PSI
Invesco Dynamic Semiconductors ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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