What Is the PHLX Semiconductor Sector Index (SOX)?
The PHLX Semiconductor Sector Index (SOX) is a capitalization-weighted index composed of 30 semiconductor firms. The corporations inside the index have primary business operations that include the design, distribution, manufacture, and sale of semiconductors. The index is designed to track the potency of listed semiconductors.
Key Takeaways
- The PHLX Semiconductor (SOX) is an equity index composed of companies necessarily involved inside the production and sale of semiconductor products comparable to microchips, pc methods, and networking equipment.
- The SOX is a modified market capitalization-weighted index listed on the Philadelphia Stock Trade in cooperation with Nasdaq Inc.
- Tech patrons can look to quite a few ETF products that track the SOX.
Understanding the PHLX Semiconductor Sector Index (SOX)
The PHLX Semiconductor Sector Index (SOX) was once as soon as created by way of the Philadelphia Stock Trade (PHLX) in 1993. It’s nonetheless managed by way of the Trade with reinforce from its owner Nasdaq. Exact-time knowledge is provided daily from the PHLX.
To be included inside the index, a security will have to meet the following requirements defined by way of the PHLX and Nasdaq.
- A stock will have to have business operations that necessarily point of interest on the design, distribution, manufacture, and sale of semiconductors.
- Stocks will have to be listed on the Nasdaq, New York Stock Trade (NYSE), NYSE American, or the CBOE Trade.
- Shares can include common stocks, odd shares, American depositary receipts (ADRs), shares of in reality useful hobby, or limited partnership interests.
- Securities will have to have a minimum market capitalization of at least $100 million.
- Participants will have to have traded at least 1.5 million shares in every of the six calendar months primary up to the reference date.
- The security has been purchasing and promoting for at least 3 months on a registered market, no longer in conjunction with the month of initial document.
- The security will have to have listed alternatives on a registered market inside the U.S. or be eligible to do so.
- The security cannot be in the course of bankruptcy proceedings.
SOX Parts
If the PHLX and Nasdaq identify more than 30 eligible securities, the index will only include the best possible 30 biggest by way of market capitalization. As of April 2022, the SOX was once as soon as composed of the following securities:
| SOX Index Parts (April 2022) | |
|---|---|
| Company Name | Protection Symbol |
| ADV MICRO DEVICES | AMD |
| AMKOR TECHNOLOGY | AMKR |
| ANALOG DEVICES CMN | ADI |
| APPLIED MATERIALS | AMAT |
| ASML HLDG NY REG | ASML |
| AZENTA, INC. | AZTA |
| BROADCOM INC. | AVGO |
| ENTEGRIS INC. | ENTG |
| II VI INC | IIVI |
| INTEL CORP | INTC |
| IPG PHOTONICS CORP | IPGP |
| KLA CP CMN STK | KLAC |
| LAM RESEARCH CORP | LRCX |
| LATTICE SEMICOND | LSCC |
| MARVELL TECH GROUP | MRVL |
| MICROCHIP TECHNOLOGY | MCHP |
| MICRON TECHNOLOGY | MU |
| MONOLITHIC POWER SYS | MPWR |
| NVIDIA CORPORATION | NVDA |
| NXP SEMICONDUCTORS | NXPI |
| ON SEMICONDUCTOR | ON |
| POWER INTEGRATN | POWI |
| QORVO, INC. CMN | QRVO |
| QUALCOMM INC | QCOM |
| SILICON LABS INC | SLAB |
| SKYWORKS SOLUTIONS | SWKS |
| TAIWAN SEMICOND ADS | TSM |
| TERADYNE INC CMN | TER |
| TEXAS INSTRUMENTS | TXN |
| WOLFSPEED, INC. CM | WOLF |
Investing inside the PHLX Semiconductor Sector Index (SOX)
The SOX is a closely watched index for patrons serious about generation chip stocks. Possible choices on the index are actively traded. Investors serious about investing inside the index’s components can look into business traded funds (ETFs).
A popular ETF index fund that tracks the SOX is the Invesco PHLX Semiconductor ETF (SOXQ). Each and every different is the VanEck Vectors Semiconductor ETF (SMH).
There are also leveraged and inverse leveraged ETFs tracking the index: the Direxion Day by day Semiconductor Bull 3X Shares (SOXL) managed by way of Rafferty Asset Regulate, LLC and the Direxion Day by day Semiconductor Go through 3X Shares (SOXS) managed by way of Rafferty Asset Regulate, LLC.
The Philadelphia Stock Trade (PHLX)
The PHLX is the oldest stock business in the USA. It was once as soon as acquired by way of Nasdaq in 2008 and focuses on the purchasing and promoting of alternatives. Its listings include equity alternatives, index alternatives, and foreign currency echange echange alternatives.
The SOX is one in every of quite a few targeted sector indexes created by way of the PHLX. Other indexes include the PHLX Housing Sector, PHLX Oil Supplier Sector, PHLX Utility Sector, and the PHLX Gold/Silver Sector Index.
