SOXQ's Performance May Be Weighted Down By The Broader Semiconductor Market

  • Invesco PHLX Semiconductor ETF offers concentrated exposure to the semiconductor sector, but much of its portfolio is tied to non-AI markets, potentially exposing investors to broader market headwinds. AI growth has been muted by the broader decline in the industry, resulting in SOXQ underperforming the S&P 500 by a wide margin. Given the risks to the broader industry, investors may realize improved performance when investing in a broader index, offering similar exposure to top holdings like Nvidia and Broadcom shares.