Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTKatie Brockman, The Motley FoolSun, June 7, 2026 at 11:10 PM GMT+2 3 min readBoth the iShares Semiconductor ETF (NASDAQ:SOXX)and the iShares U.S. Technology ETF (NYSEMKT:IYW) target the U.S. tech sector, but they take different approaches.While IYW tracks a broad index of technology companies, including software and internet giants, SOXX focuses exclusively on the hardware-heavy semiconductor industry.This distinction in scope leads to different risk-reward profiles for growth-oriented investors who may be weighing broad tech exposure against a more concentrated play on the essential chips powering global innovation and artificial intelligence.Snapshot (cost & size)MetricIYWSOXXIssueriSharesiSharesExpense ratio0.38%0.34%1-yr return (as of June 7, 2026)47.7%149.9%Dividend yield0.11%0.29%Beta (5Y monthly)1.432.26Assets under management (AUM)$25.2 billion$38.4 billionBeta 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 months. Dividend yield is the trailing-12-month distribution yield.SOXX is slightly more affordable with a lower expense ratio, and it also offers a higher dividend payout. These yield differences reflect the cash-flow characteristics of their underlying semiconductor and broad-tech holdings.Performance & risk comparisonMetricIYWSOXXMax drawdown (5 yr)-39.4%-45.8%Growth of $1,000 over 5 years (total return)$2,624$3,859What's insideSOXX targets 100% of its portfolio in the technology sector, with a specific focus on the semiconductor industry. It holds 30 stocks, and its largest positions include Micron Technology, Advanced Micro Devices, and Marvell Technology. The fund was launched in 2001 and has a trailing-12-month dividend of $1.67 per share.In contrast, IYW offers broader reach with 139 holdings. It also focuses exclusively on the technology sector, and its largest positions include tech giants like Nvidia, Apple, and Alphabet. The fund was launched in 2000 and has a trailing-12-month dividend of $0.27 per share.For more guidance on ETF investing, check out the full guide at this link.What this means for investorsSOXX is the more concentrated ETF of the two, as it focuses solely on semiconductor stocks. This has proven to be a lucrative approach, as these stocks have skyrocketed in recent years with the advancement of artificial intelligence technology. If AI continues to thrive, SOXX could be poised for significant growth.If AI falters, however, SOXX may be hit much harder than IYW. Although SOXX has outperformed IYW in both one- and five-year total returns, it’s also experienced a much steeper max drawdown and a higher beta — suggesting more severe short-term volatility.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info