SOXX vs. FTEC: Should Investors Choose Semiconductor Stocks or Tech Sector Diversification?
Here's how the two funds stack up on factors like price, risk, returns, and diversification.
Overview
The iShares Semiconductor ETF (NASDAQ:SOXX) and the Fidelity MSCI Information Technology Index ETF (NYSEMKT:FTEC) both target the technology sector, but their underlying mechanics differ.
While one focuses exclusively on the critical hardware that powers modern computing, the other captures a diverse range of software, services, and hardware giants. This distinction fundamentally affects concentration risk, volatility, and long-term performance potential for growth-oriented investors.
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
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Originally published at www.fool.com.