QQQ vs SOXX
NASDAQ 100 (QQQ) vs Semiconductors (SOXX) — Broad tech diversification or all-in on chips?
Understanding QQQ and SOXX
QQQ (Invesco QQQ Trust) tracks the NASDAQ-100 — the 100 largest non-financial NASDAQ companies. While it includes semiconductor heavyweights like NVIDIA, Broadcom, and AMD, tech represents only part of the story. QQQ also holds software (Microsoft, Adobe), internet (Amazon, Meta, Google), and consumer companies (PepsiCo, Costco).
SOXX (iShares Semiconductor ETF) is a pure play on the chip industry — ~30 semiconductor companies including NVIDIA, AMD, Broadcom, Qualcomm, and Texas Instruments. With the AI boom driving unprecedented demand for GPUs and data center chips, SOXX has become one of the most popular thematic ETFs. But concentration in one sub-sector means higher risk.
Think of SOXX as a leveraged bet on the semiconductor cycle within the broader tech market that QQQ represents. SOXX holds many of the same chip stocks as QQQ but at much higher concentration. Over 5 years, SOXX returned +143.96% vs QQQ's +91.41% — but with 26.5% volatility vs QQQ's 14.3%. When chips are hot, SOXX soars; when the cycle turns, it crashes harder.
Broad Tech vs Pure Chips
Compare QQQ and SOXX across key metrics that matter to long-term investors: expense ratios, historical returns, volatility, and maximum drawdown. The "Winner" column highlights which ETF performs better on each metric.
| Metric | QQQ | SOXX | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.34% | QQQ |
| Total Assets | $395.0B | $21.7B | QQQ |
| Number of Holdings | ~100 | ~30 | QQQ |
| 1 Year Return | +27.08% | +77.10% | SOXX |
| 5 Year Return | +91.41% | +143.96% | SOXX |
| 10 Year Return | +482.59% | +1098.98% | SOXX |
| Volatility (3Y) | 14.3% | 26.5% | QQQ |
| Max Drawdown | -81.1% | -63.0% | SOXX |
| Current Price | $593.72 | N/A | — |
Growth of $10,000
The table below shows what $10,000 invested at different points in time would be worth today. The chart visualizes long-term growth starting from the same inception date for both ETFs.
Monthly Returns Comparison
These heatmaps reveal the month-by-month performance patterns of each ETF. Green indicates positive returns, red indicates negative returns, with darker colors showing larger moves. Use these to identify volatility patterns — notice how SOXX tends to have more extreme months (both positive and negative) compared to QQQ's more moderate swings.
QQQ Monthly Returns
SOXX Monthly Returns
Diversified Tech vs Semiconductor Concentration
QQQ (NASDAQ 100)
- • 100 companies across tech, internet, and consumer
- • Semiconductors are ~20% of the fund
- • Diversified across software, internet, cloud, hardware
- • Lower volatility from sector diversification
- • Best for broad tech exposure
SOXX (Semiconductors)
- • ~30 pure semiconductor companies
- • 100% chips — design, equipment, and manufacturing
- • Highest concentration in NVIDIA, Broadcom, AMD
- • Extremely cyclical — booms and busts
- • Best for high-conviction AI/chip investors
The AI Chip Supply Chain: Why It Matters for Both ETFs
The AI boom has created a supply chain where QQQ and SOXX play different roles:
NVIDIA designs GPUs, AMD makes CPUs/GPUs, Broadcom builds networking chips. These companies capture the first wave of AI spending. SOXX is 100% exposed here.
Microsoft Azure, Amazon AWS, and Google Cloud buy billions in chips to build AI infrastructure. These companies are in QQQ but not SOXX.
Adobe, Salesforce, and other QQQ holdings build AI features into their products. They benefit from AI without making chips.
SOXX = picks and shovels. Semiconductor companies sell the hardware regardless of which AI application wins. But they're cyclical — when companies finish building data centers, chip orders drop.
QQQ = the whole ecosystem. QQQ captures value across all three layers. If chips boom, NVIDIA lifts QQQ. If software monetizes AI, Adobe and Salesforce lift QQQ. This diversification is why QQQ is less volatile.
The Full Stack or Just the Chips?
Choose QQQ for diversified tech exposure that includes but isn't limited to semiconductors. Choose SOXX if you have strong conviction in the semiconductor cycle and AI-driven chip demand. SOXX is essentially a concentrated bet within QQQ — higher reward potential but significantly higher risk.
Frequently Asked Questions
Is SOXX better than QQQ for AI exposure?
SOXX offers more concentrated AI chip exposure (NVIDIA, AMD, Broadcom), but QQQ provides AI exposure through both chips and software/cloud (Microsoft, Google, Amazon). SOXX is higher risk/reward for AI specifically.
Why is SOXX more volatile than QQQ?
SOXX holds only ~30 semiconductor stocks in one cyclical sub-sector. QQQ diversifies across 100 companies in multiple industries, reducing volatility.
Does QQQ already include semiconductor stocks?
Yes, QQQ holds NVIDIA, AMD, Broadcom, and other chip stocks. But they represent only ~20% of QQQ vs 100% of SOXX.
What is the expense ratio for QQQ vs SOXX?
QQQ has an expense ratio of 0.18%, while SOXX has an expense ratio of 0.34%. Both are reasonable for thematic/sector ETFs.
QQQ and SOXX Alternatives
NASDAQ 100 Alternatives
- • QQQM — Invesco NASDAQ 100 ETF (lower expense ratio)
- • ONEQ — Fidelity NASDAQ Composite (broader NASDAQ exposure)
- • TQQQ — ProShares UltraPro QQQ (3x leveraged, short-term only)
- • FNCMX — Fidelity NASDAQ Composite Index Fund (mutual fund)
Semiconductor Alternatives
- • SMH — VanEck Semiconductor ETF (25 holdings, very similar)
- • SOXQ — Invesco PHLX Semiconductor ETF (lower fees)
- • PSI — Invesco Semiconductors ETF (equal-weighted approach)
- • FSELX — Fidelity Select Semiconductors (mutual fund option)
More QQQ Comparisons
Last updated: 3/15/2026