SOXX vs. QQQ
Compare and contrast key facts about iShares PHLX Semiconductor ETF (SOXX) and Invesco QQQ (QQQ).
SOXX and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SOXX is a passively managed fund by iShares that tracks the performance of the PHLX Semiconductor Sector Index. It was launched on Jul 10, 2001. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. Both SOXX and QQQ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: SOXX or QQQ.
Key characteristics
| SOXX | QQQ | |
|---|---|---|
| YTD Return | 12.68% | 6.48% |
| 1Y Return | 63.29% | 38.66% |
| 3Y Return (Ann) | 19.67% | 10.38% |
| 5Y Return (Ann) | 28.88% | 18.72% |
| 10Y Return (Ann) | 28.04% | 18.51% |
| Sharpe Ratio | 2.17 | 2.33 |
| Daily Std Dev | 28.73% | 16.36% |
| Max Drawdown | -69.65% | -82.98% |
| Current Drawdown | -8.98% | -2.44% |
Correlation
The correlation between SOXX and QQQ is 0.84, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
SOXX vs. QQQ - Performance Comparison
In the year-to-date period, SOXX achieves a 12.68% return, which is significantly higher than QQQ's 6.48% return. Over the past 10 years, SOXX has outperformed QQQ with an annualized return of 28.04%, while QQQ has yielded a comparatively lower 18.51% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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SOXX vs. QQQ - Expense Ratio Comparison
SOXX has a 0.46% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Risk-Adjusted Performance
SOXX vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares PHLX Semiconductor ETF (SOXX) and Invesco QQQ (QQQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
SOXX vs. QQQ - Dividend Comparison
SOXX's dividend yield for the trailing twelve months is around 1.70%, more than QQQ's 0.61% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SOXX iShares PHLX Semiconductor ETF | 1.70% | 2.35% | 3.76% | 1.91% | 2.43% | 3.70% | 4.11% | 2.70% | 3.23% | 3.86% | 4.69% | 3.55% |
QQQ Invesco QQQ | 0.61% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
Drawdowns
SOXX vs. QQQ - Drawdown Comparison
The maximum SOXX drawdown since its inception was -69.65%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for SOXX and QQQ. For additional features, visit the drawdowns tool.
Volatility
SOXX vs. QQQ - Volatility Comparison
iShares PHLX Semiconductor ETF (SOXX) has a higher volatility of 10.07% compared to Invesco QQQ (QQQ) at 5.81%. This indicates that SOXX's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.