The iShares Semiconductor ETF (NASDAQ:SOXX) offers specialized exposure to chipmakers with lower costs, while the iShares U.S. Technology ETF (NYSEMKT:IYW) provides a broader, lower-volatility play across the entire technology sector.<\/p>\n
Investors looking for outsized growth often turn to the technology sector, but the level of concentration significantly impacts the risk profile. While the iShares Semiconductor ETF drills deep into a single industry, the iShares U.S. Technology ETF casts a wider net across software, hardware, and communication services. This comparison examines how these two funds from the same issuer balance growth potential against sector-specific volatility.<\/p>\n
Snapshot (cost & size) <\/p>\n
Metric<\/p>\n
SOXX<\/p>\n
IYW<\/p>\n
Issuer<\/p>\n
iShares<\/p>\n
iShares<\/p>\n
Expense ratio<\/p>\n
0.34%<\/p>\n
0.38%<\/p>\n
1-yr return (as of Apr. 27, 2026)<\/p>\n
148.0%<\/p>\n
53.7%<\/p>\n
Dividend yield<\/p>\n
0.5%<\/p>\n
0.1%<\/p>\n
Beta<\/p>\n
1.73<\/p>\n
1.33<\/p>\n
AUM<\/p>\n
$29.7 billion<\/p>\n
$21.4 billion<\/p>\n
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12\u00a0months. Dividend yield is the trailing-12-month distribution yield.<\/p>\n
The iShares Semiconductor ETF is slightly more affordable with a 0.34% expense ratio compared to 0.38% for the iShares U.S. Technology ETF. Investors seeking income may also prefer the semiconductor fund, as its trailing-12-month yield of 0.5% is higher than the 0.1% payout offered by the broader tech fund.<\/p>\n
Performance & risk comparison <\/p>\n
Metric<\/p>\n
SOXX<\/p>\n
IYW<\/p>\n
Max drawdown (5 yr)<\/p>\n
(45.8%)<\/p>\n
(39.4%)<\/p>\n
Growth of $1,000 over 5 years (total return)<\/p>\n
$3,299<\/p>\n
$2,356<\/p>\n
What’s inside <\/p>\n
The iShares U.S. Technology ETF holds 139 stocks, providing diversified exposure across the broader tech landscape. Its sector allocation is primarily technology at 82%, followed by communication services at 17% and a small 1% slice of industrials. Largest positions include Nvidia (NASDAQ:NVDA) at 17%, Apple (NASDAQ:AAPL) at 13.67%, and Alphabet (NASDAQ:GOOGL) at 7.04%. Launched in 2000, the fund has a trailing-12-month dividend of $0.27 per share. Its wider scope includes internet giants that may be classified as communication services rather than pure technology companies.<\/p>\n
The iShares Semiconductor ETF is significantly more concentrated, tracking only 30 holdings that focus 100% on the semiconductor industry. Top holdings include Broadcom (NASDAQ:AVGO) at 8.05%, Advanced Micro Devices (NASDAQ:AMD) at 7.88%, and Micron Technology (NASDAQ:MU) at 7.32%. Launched in 2001, it has paid $1.67 per share over the trailing 12 months. This narrower focus on chip design and manufacturing contributes to its higher beta of 1.73, making it more sensitive to market movements than a broader tech index.<\/p>\n
Story Continues <\/p>\n
For more guidance on ETF investing, check out the full guide at this link<\/a>.<\/p>\n What this means for investors <\/p>\n iShares offers ETFs for investors who want exposure to the hot field of artificial intelligence. Two exchange-traded funds in this camp are the iShares U.S. Technology ETF (IYW) and the iShares Semiconductor ETF (SOXX). Making a choice between this pair comes down to some key factors.<\/p>\n IYW has a slightly higher expense ratio, but offers broad exposure across the technology sector. This gives you stocks such as Google parent Alphabet, a major AI player, that isn\u2019t available in SOXX.<\/p>\n Moreover, IYW delivers greater diversification, since you\u2019re not dependent only on the semiconductor industry\u2019s success to power your returns. This provides reduced volatility and risk, contributing to the ETF\u2019s lower beta and max drawdown. IYW is ideal for those who seek AI exposure, but want to go more broadly across the tech sector to reduce reliance on a single industry.<\/p>\n SOXX\u2019s focus solely on semiconductor stocks has been a boon to performance with an incredible one-year return of nearly 150%. Given the central role semiconductor companies, such as AMD and Broadcom, play in the AI sector, SOXX could continue to deliver outsized results.<\/p>\n On the flip side, if Wall Street sours on stocks in the sector or macroeconomic conditions impact the industry, the ETF\u2019s performance can suffer. SOXX is best for investors who are comfortable with the concentrated risk in exchange for the opportunity for strong gains.<\/p>\n Should you buy stock in iShares Trust – iShares U.s. Technology ETF right now? <\/p>\n Before you buy stock in iShares Trust – iShares U.s. Technology ETF, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and iShares Trust – iShares U.s. Technology ETF wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $496,797!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,282,815!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 979% \u2014 a market-crushing outperformance compared to 200% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of April 30, 2026. <\/p>\n Robert Izquierdo<\/a> has positions in Advanced Micro Devices, Alphabet, Apple, Broadcom, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Broadcom, Micron Technology, Nvidia, and iShares Trust – iShares Semiconductor ETF. The Motley Fool has a disclosure policy<\/a>.<\/p>\n