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SOXQ - ETF AI Analysis

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SOXQ

Invesco PHLX Semiconductor ETF (SOXQ)

Rating:74Outperform
Price Target:
SOXQ’s rating suggests it is a solid but not risk‑free way to invest in the semiconductor industry, with performance driven largely by leaders in AI and chip technology. Strong holdings like Micron, Nvidia, and Broadcom boost the fund thanks to their robust financial results and strategic focus on AI, data centers, and advanced chip markets, while Intel is a relative weak spot due to profitability and cash flow challenges. The main risk is the fund’s heavy concentration in a single, cyclical sector that also faces valuation pressures and regulatory uncertainties, especially around trade and export controls.
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 is all about a handful of heavyweights. Micron has been the star of the show lately, surging on AI memory demand, while Intel and AMD are both rising as they fight for data center and PC share. Nvidia remains the headline act, but its momentum looks steadier than earlier in the year. Broadcom and KLA are more mixed, occasionally losing steam and tempering gains. Overall, this ETF is tightly tied to the semiconductor cycle and Big Tech’s AI arms race.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Micron11.83%$308.97M$1.12T749.14%
79
Outperform
Nvidia8.50%$222.00M$4.96T44.53%
76
Outperform
Marvell8.42%$219.97M$245.57B316.28%
76
Outperform
Broadcom7.39%$193.00M$1.83T53.63%
76
Outperform
Intel6.28%$164.13M$587.84B518.52%
64
Neutral
Advanced Micro Devices5.98%$156.20M$796.47B340.40%
73
Outperform
KLA3.86%$100.91M$31.50B193.36%
77
Outperform
Lam Research3.80%$99.17M$453.36B309.75%
77
Outperform
Applied Materials3.63%$94.90M$438.77B232.52%
77
Outperform
Qualcomm3.49%$91.27M$213.92B36.84%
80
Outperform

SOXQ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
87.18
Positive
100DMA
74.83
Positive
200DMA
64.17
Positive
Market Momentum
MACD
4.38
Positive
RSI
60.73
Neutral
STOCH
49.97
Neutral
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 99.26, equal to the 50-day MA of 87.18, and equal to the 200-day MA of 64.17, indicating a bullish trend. The MACD of 4.38 indicates Positive momentum. The RSI at 60.73 is Neutral, neither overbought nor oversold. The STOCH value of 49.97 is Neutral, 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
$2.61B0.19%
74
Outperform
$5.30B0.40%
71
Outperform
$3.26B0.35%
66
Neutral
$2.52B0.56%
71
Outperform
$2.51B0.60%
74
Outperform
$1.02B1.03%
75
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SOXQ
Invesco PHLX Semiconductor ETF
105.29
63.99
154.94%
RSPT
Invesco S&P 500 Equal Weight Technology ETF
XSD
SPDR S&P Semiconductor ETF
PSI
Invesco Dynamic Semiconductors ETF
FTXL
First Trust Nasdaq Semiconductor ETF
CHPY
YieldMax Semiconductor Portfolio Option Income 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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