XLK VS . SOXX : BROAD TECH EXPOSURE OR SEMICONDUCTOR BET ?

What happened: A comparison of State Street Technology Select Sector SPDR ETF (XLK) and iShares Semiconductor ETF (SOXX) contrasts broad tech exposure with a concentrated chip industry bet. The author favors XLK for its lower cost and diversification. Key numbers: Expense ratios 0.08% for XLK and 0.33% for SOXX. One-year returns 33.8% for XLK and 79.5% for SOXX as of Oct. 15, 2026. Why it matters: SOXX posted better recent and five-year returns, but the author picks XLK for its lower expense ratio, higher dividend, lower beta, shallower five-year max drawdown, and more positions.

A comparison of State Street Technology Select Sector SPDR ETF (XLK) and iShares Semiconductor ETF (SOXX) contrasts broad tech exposure with a concentrated chip industry bet. The author favors XLK for its lower cost and diversification.

SOXX posted better recent and five-year returns, but the author picks XLK for its lower expense ratio, higher dividend, lower beta, shallower five-year max drawdown, and more positions.