This Tech ETF Has More than Doubled in 2026. Is It a Good Buy for the Back Half of the Year?

Any clip an ETF tin treble successful worth successful a fistful of years, it's an awesome feat. Based connected the Rule of 72, it would instrumentality an concern 7.2 years to treble successful worth if it averaged 10% yearly returns.

Any clip an exchange-traded money (ETF) tin treble successful worth successful fractional a year, it's connected a generational run. That's been the lawsuit truthful acold this twelvemonth with the iShares Semiconductor ETF (NASDAQ: SOXX). Through marketplace adjacent connected June 22, SOXX is up 108%, 12 times higher than the S&P 500's returns successful that time.

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Considering SOXX's immense run-up this year, is it inactive a buy, oregon person investors missed the boat? Let's instrumentality a look.

Why person spot stocks received truthful overmuch attention?

Semiconductors (chips) are the invisible heroes of the tech world. You mightiness not spot them, but immoderate clip you're utilizing an physics instrumentality -- whether it's a smartphone, laptop, tablet, TV, oregon car infotainment strategy -- you're indirectly interacting with chips.

Chips person ever been important successful the tech world, but semiconductor stocks person precocious go immoderate of the astir sought-after stocks due to the fact that they are important to the AI ecosystem. Without them, determination wouldn't beryllium an AI ecosystem.

Semiconductor businesses person seen unprecedented demand, and, successful existent banal marketplace fashion, wherever there's a batch of wealth being made (or to beryllium made), capitalist involvement increases.

What you're getting erstwhile you put successful SOXX

SOXX contains 30 of the world's astir invaluable and important semiconductor companies, but astir of its power comes from its apical holdings, which relationship for conscionable implicit 59% of the ETF:

• Micron: 8.39%

• Advanced Micro Devices (AMD): 7.48%
  

• Nvidia: 7.17%
  

• Broadcom: 6.61%
  

• Intel: 6.07%
  

• Marvell Technology: 5.44%
  

• Applied Materials: 4.92%
  

• KLA: 4.85%
  

• Lam Research: 4.39%
  

• Taiwan Semiconductor Manufacturing (TSMC): 4.12%

Investing successful SOXX lets you instantly seizure the full semiconductor proviso concatenation with a azygous investment. It has pure-play spot designers specified arsenic Nvidia, AMD, Broadcom, Qualcomm, and Marvell; hybrid manufacturers specified arsenic Micron and Intel; instrumentality makers specified arsenic Applied Materials, KLA, and Lam Research; and the go-to spot foundry, TSMC.

It's a one-stop store for a niche, yet critical, portion of the semiconductor worth chain.

How SOXX has historically performed against the marketplace