iShares Semiconductor ETF (SOXX) - Passive fund Based on Semiconductor technology index

For those considering a tilt to specific technology asset class in their portfolio, high PE of this asset class is always concerning. However, to my utter surprise, semiconductor technology specific passive iShares Semiconductor ETF (SOXX) happens to have dirt cheap PE of merely 21 (as compared to 29 for technology heavy NASDAQ 100 - QQQ).

Also, amongst all the technology asset class non leveraged etfs, SOXX performance is almost number one for all 1, 3, 5 years horizon. With dividend yield of over 1% and projected earnings growth of 17%, this ETF is projected to generate 1+17=18% annual return for next 5 years.

It invests into ICE Semiconductor Sector Index which is primarily based on top 30 (based on market cap) global semiconductor companies. It's expense ratio of 0.43% is little bit on higher side. However, it's still one of least expensive focused technology index ETF.



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