XLK vs SOXX Stock Comparison: AI Score, Valuation, Performance and Upside
XLK and SOXX both provide technology exposure but at very different levels of concentration. XLK covers all S&P 500 technology stocks broadly. SOXX concentrates exclusively in semiconductors. SOXX has significantly higher cyclicality and both higher peaks and deeper troughs than XLK. AI chip demand has made SOXX an extraordinary bull market performer in 2023–2024; but semiconductor down-cycles are severe.
XLK vs SOXX is broad technology sector coverage including software, hardware, and chips (XLK) versus pure-play semiconductor industry concentration including AI chips, equipment, and memory (SOXX) — SOXX wins big in semiconductor bull cycles; XLK is more stable through technology cycles with software diversification.
XLK holds the edge across 3 of 5 key metrics in this comparison. SOXX has delivered stronger 1-year price return (+48.46% vs +16.48% for XLK).
- prefer broad technology sector coverage including software (Microsoft), hardware (Apple), and semiconductors in a single low-cost ETF
- value lower volatility than pure semiconductor exposure due to software and services companies providing earnings stability
- want technology sector exposure at 0.09% — one of the lowest-cost technology sector ETFs available
- are comfortable with Apple and Microsoft representing 45%+ of the fund and Alphabet/Amazon's absence due to GICS sector classification
- prefer concentrated semiconductor exposure to maximize participation in AI chip demand, memory recovery, and data center buildout cycles
- value semiconductor equipment companies (AMAT, LRCX, KLAC) included in SOXX but underrepresented in broader tech ETFs
- want maximum upside in semiconductor bull markets — SOXX can significantly outperform XLK and even QQQ during strong chip cycles
- are comfortable with 50%+ drawdowns during semiconductor inventory down-cycles and 0.35% expense ratio for the concentrated exposure
| Metric | XLK | SOXX |
|---|---|---|
| ETF scorei | 29.6 | 30.8 |
| Latest closei | $174.22 | $453.65 |
| 1M returni | -12.81% | -22.97% |
| 3M returni | -2.03% | -10.58% |
| 6M returni | +7.76% | -1.71% |
| 1Y returni | +16.48% | +48.46% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | XLK | SOXX |
|---|---|---|
| 1Y ago | $11.66K (+16.6%) started 2025-11-03 | $14.81K (+48.1%) started 2025-11-03 |
| 5Y ago | $22.93K (+129.3%) started 2021-11-03 | $29.74K (+197.4%) started 2021-11-03 |
| 10Y ago | $92.88K (+828.8%) started 2016-11-03 | $150.78K (+1407.8%) started 2016-11-03 |
Hypothetical — past performance does not guarantee future results.
| Metric | XLK | SOXX |
|---|---|---|
| Expense ratioi | 0.08% | 0.33% |
| Total assets (AUM)i | $127.3B | $48.43B |
| Dividend yieldi | 0.43% | 0.22% |
| Trailing P/Ei | 28.53 | 26.67 |
| Betai | 1.38 | 1.89 |
| 52-week change | 16.48% | 48.46% |
| Metric | XLK | SOXX |
|---|---|---|
| 1Y returni | +16.48% | +48.46% |
| 6M returni | +7.76% | -1.71% |
| 3M returni | -2.03% | -10.58% |
| 1M returni | -12.81% | -22.97% |
| 1Y Sharpe ratio | 0.52 | 0.97 |
| Betai | 1.38 | 1.89 |
| Dividend yieldi | 0.43% | 0.22% |
| 5Y CAGR | +17.19% | +23.42% |
Over the past year, XLK and SOXX have moved strongly in the same direction (correlation of 0.91), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | XLK | SOXX |
|---|---|---|---|
| 1Y | Growthi | +16.00% | +47.58% |
| CAGRi | +16.06% | +47.78% | |
| Volatilityi | 27.31% | 47.54% | |
| Sharpe ratioi | 0.52 | 0.97 | |
| Sortino ratioi | 0.73 | 1.37 | |
| Max drawdowni | 15.86% | 30.70% | |
| Current drawdowni | 13.75% | 30.70% | |
| Avg drawdowni | 5.28% | 8.89% | |
| Ulcer Indexi | 6.30% | 12.11% | |
| Max daily dropi | 6.66% | 10.44% | |
| Max wkly dropi | 9.99% | 16.29% | |
| 5Y | Growthi | +120.92% | +186.16% |
| CAGRi | +17.19% | +23.42% | |
| Volatilityi | 26.21% | 39.24% | |
| Sharpe ratioi | 0.57 | 0.62 | |
| Sortino ratioi | 0.82 | 0.90 | |
| Max drawdowni | 33.56% | 45.75% | |
| Current drawdowni | 13.75% | 30.70% | |
| Avg drawdowni | 8.66% | 14.66% | |
| Ulcer Indexi | 12.26% | 18.48% | |
| Max daily dropi | 6.82% | 10.44% | |
| Max wkly dropi | 13.59% | 17.75% | |
| 10Y | Growthi | +734.27% | +1265.99% |
| CAGRi | +23.64% | +29.89% | |
| Volatilityi | 25.19% | 35.15% | |
| Sharpe ratioi | 0.79 | 0.79 | |
| Sortino ratioi | 1.13 | 1.14 | |
| Max drawdowni | 33.56% | 45.75% | |
| Current drawdowni | 13.75% | 30.70% | |
| Avg drawdowni | 6.05% | 9.83% | |
| Ulcer Indexi | 9.64% | 14.10% | |
| Max daily dropi | 13.81% | 15.23% | |
| Max wkly dropi | 17.04% | 19.88% |
| Category | XLK | SOXX |
|---|---|---|
| Fund name | State Street Technology Select Sector SPDR ETF | iShares Semiconductor ETF |
| Type | ETF | ETF |
| Expense ratioi | 0.08% | 0.33% |
| Total assets (AUM)i | $127.3B | $48.43B |
| Dividend yieldi | 0.43% | 0.22% |
- Very low 0.09% expense ratio for technology sector exposure
- Includes both software (Microsoft, Oracle) and semiconductor (Nvidia, Broadcom) alongside hardware (Apple) — comprehensive tech sector coverage
- Market-cap weighting means XLK concentrates in the highest-quality, largest-cap technology companies
- Pure-play semiconductor exposure captures the full upside of semiconductor bull cycles (AI chip demand, memory recovery, data center buildout)
- Semiconductor industry has long-term structural growth driven by AI, automotive, IoT, and 5G — SOXX captures all these drivers simultaneously
- Includes the most complete semiconductor company coverage including equipment makers (AMAT, LRCX, KLAC) not fully represented in XLK
- Apple and Microsoft represent 45%+ of XLK — very concentrated at the top two holdings
- Excludes Alphabet (Google) and Amazon classified in Communication Services and Consumer Discretionary — major tech companies missing from XLK
- Broad tech exposure dilutes semiconductor bull market upside compared to a semiconductor-focused ETF like SOXX
- 0.35% expense ratio is 4x XLK's cost — meaningful drag over long holding periods
- Semiconductors are among the most cyclical industries — SOXX regularly experiences 50%+ drawdowns during inventory down-cycles
- Single industry concentration means SOXX dramatically underperforms broad tech during periods when software or hardware outperforms chips
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