SOXX - SOXX: Inefficient Fund With Tracking Error
2024-07-18 06:57:08 ET
Summary
- The iShares Semiconductor ETF tracks semiconductor sector performance with major holdings like Broadcom, Nvidia, and AMD.
- SOXX has underperformed its benchmark, has a higher expense ratio, and faces tracking error issues due to high volatility in the semiconductor sector.
- Investors may find better opportunities in other ETFs with lower costs and more efficient tracking for long-term growth and sector exposure.
- With this, I am a sell on the ETF.
Investment Thesis
The iShares Semiconductor ETF ( SOXX ) is designed to track the performance of the semiconductor sector. It provides a granular view of the semiconductor market and aims to replicate the investment results of the ICE Semiconductor Index. The ETF has total net assets of over $16 billion and includes 30 holdings, with major names like Broadcom (AVGO), Nvidia (NVDA), and Advanced Micro Devices ( AMD ) comprising significant portions of the portfolio?....
SOXX: Inefficient Fund With Tracking Error