Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTSara Appino, The Motley FoolSun, June 7, 2026 at 3:30 PM GMT+2 4 min readState Street Technology Select Sector SPDR ETF (NYSEMKT:XLK) provides broad technology exposure at a significantly lower cost, while iShares Semiconductor ETF (NASDAQ:SOXX) offers a concentrated, higher-volatility play specifically on the semiconductor industry.Both funds serve as primary vehicles for tech-heavy portfolios but differ sharply in their scope. While SOXX isolates the semiconductor sub-sector, XLK captures the wider S&P 500 technology landscape. Choosing between them may depend on whether an investor seeks pure-play chip exposure or diversified software and hardware giants.Snapshot (cost & size)MetricSOXXXLKIssueriSharesSPDRExpense ratio0.34%0.08%1-yr return (as of June 3, 2026)190.10%66.90%Dividend yield0.30%0.40%Beta1.781.33AUM$40.7 billion$127.7 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.The State Street fund is significantly more affordable than the iShares fund. Additionally, XLK offers a slightly higher trailing-12-month dividend yield of 0.40%, compared to 0.30% for SOXX.Performance & risk comparisonMetricSOXXXLKMax drawdown (5 yr)(45.80%)(33.60%)Growth of $1,000 over 5 years (total return)$4,402$2,912What's insideState Street Technology Select Sector SPDR ETF (NYSEMKT:XLK) provides diversified exposure to the technology sector, including software, hardware, and communications equipment. It holds 72 positions and was launched in 1998. Its largest positions include Nvidia (NASDAQ:NVDA) at 13.30%, Apple (NASDAQ:AAPL) at 11.37%, and Microsoft (NASDAQ:MSFT) at 8.05%. The fund has a trailing-12-month dividend of $0.76 per share. It allows for strategic positioning within the S&P 500 tech index without the narrow concentration of a single-industry fund.iShares Semiconductor ETF (NASDAQ:SOXX) tracks 30 U.S.-listed semiconductor equities and was launched in 2001. Its largest positions include Micron Technology (NASDAQ:MU) at 11.94%, Advanced Micro Devices (NASDAQ:AMD) at 9.22%, and Marvell Technology (NASDAQ:MRVL) at 8.42%. It has paid $1.67 per share over the trailing 12 months. Because it focuses entirely on the chip industry, it is more susceptible to the cyclicality of semiconductor demand than its broader peer.For more guidance on ETF investing, check out the full guide at this link.What this means for investorsEvery major technology trend of the past decade, from cloud computing to smartphones and AI, has run on semiconductors. Chips are not just a technology subsector; they are the physical infrastructure that makes the entire digital economy possible. Global semiconductor sales are projected to reach nearly $1 trillion in 2026, driven by surging demand for AI chips. That backdrop has made SOXX one of the most closely watched sector funds in the market.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info