Tech ETF Showdown: The CHEAPER Fund That’s LOSING!
Did you know one tech investment fund, despite being significantly cheaper to own and far larger, has been dramatically outperformed over five years by its more volatile, narrowly focused counterpart? While the State Street Technology Select Sector SPDR ETF, XLK, offers broad diversification across hardware, software, and IT services with a low expense ratio, its recent returns have lagged the iShares Semiconductor ETF, SOXX. SOXX, though more volatile and expensive, delivered stronger growth over the last five years due to its laser focus on the booming semiconductor industry, but it also suffered a much deeper maximum drawdown. The choice between XLK's stable, diversified approach and SOXX's high-risk, high-reward semiconductor bet ultimately depends on an investor's risk tolerance and growth goals. Dive deeper into these investment strategies by subscribing to our channel for more expert insights!
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