SOXX vs VYM

Quick Verdict

VYM has a lower expense ratio. SOXX delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: SOXXMore Diversified: VYM

Side-by-Side Comparison

MetricSOXXVYMWinner
Expense Ratio0.34%0.04%
AUM$42.6B$79.0B
Dividend Yield0.23%2.86%
Holdings34568
YTD Return+73.38%+15.80%
1Y Return+126.63%+26.12%
3Y Return (annualized)+48.30%+18.25%
5Y Return (annualized)+29.62%+12.51%
Volatility (annualized)30.4%14.6%
Max Drawdown-70.2%-58.8%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionJul 10, 2001Nov 10, 2006

SOXX vs VYM Performance

iShares Semiconductor ETF (SOXX) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SOXX returned +126.63% while VYM returned +26.12%. Year to date, SOXX is up 73.38% versus a gain of 15.80% for VYM.

Over three years, SOXX compounded at +48.30% per year against +18.25% for VYM; over five years the annualized figures are +29.62% and +12.51% respectively. Across the full 20-year window we track, SOXX has the edge at +14.14% annualized vs +7.07%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SOXX has been the more volatile fund, with annualized monthly volatility of 30.4% compared with 14.6% for VYM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -70.2% for SOXX and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SOXX charges 0.34% per year while VYM charges 0.04%. On a $10,000 position that is $34 vs $4 annually, a gap of $30 per year that compounds over a long holding period. On income, SOXX currently yields 0.23% against 2.86% for VYM.

Holdings Overlap

9.2%overlap

SOXX and VYM share 7 holdings out of 582 unique holdings combined, representing a 9.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SOXXWeight in VYMDifference
AVGO6.63%6.47%0.16%
TXN3.93%0.85%3.08%
ADI3.72%0.77%2.95%
NXPIProProPro
QCOMProProPro
MCHPProProPro
SWKSProProPro
See all 7 holdings SOXX shares with VYM
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, SOXX or VYM?

SOXX has an expense ratio of 0.34% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $30 per year of difference.

Which performed better, SOXX or VYM?

Over the past year SOXX returned +126.63% vs +26.12% for VYM, so SOXX leads on 1-year performance. Over the longest common window we track (20 years), SOXX annualized +14.14% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, SOXX or VYM?

SOXX has been the more volatile fund at 30.4% annualized versus 14.6% for VYM. Worst drawdown: SOXX -70.2% vs VYM -58.8%.

Should I hold both SOXX and VYM?

SOXX and VYM have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SOXX and VYM?

SOXX and VYM share 7 common holdings with a 9.2% weight overlap. Combined, they hold 582 unique securities.

Which pays a higher dividend, SOXX or VYM?

SOXX yields 0.23% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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