What is the Philadelphia Semiconductor Index (SOX)
The Philadelphia Semiconductor Index (SOX) is a capitalization-weighted index composed of 30 semiconductor companies. The companies in the Index have primary business operations that involve the design, distribution, manufacture and sale of semiconductors.
BREAKING DOWN Philadelphia Semiconductor Index (SOX)
The Philadelphia Semiconductor Index was created by the Philadelphia Stock Exchange in 1993. It continues to be managed by the Exchange with support from its owner Nasdaq OMX. Details on the Index and its methodology are provided through the Nasdaq OMX Global Indexes website. Real time data is provided daily from the Philadelphia Stock Exchange.
To be included in the Index a security must meet the criteria defined by the Philadelphia Stock Exchange and Nasdaq OMX. A stock must have business operations that primarily focus on the design, distribution, manufacture, and sale of semiconductors. Stocks must be listed on the NASDAQ, New York Stock Exchange or NYSE MKT. Shares can include common stocks, ordinary shares, ADRs, shares of beneficial interest or limited partnership interests. Securities must have a minimum market capitalization of at least $100 million. Criteria for inclusion also includes volume of trade and option listing. If the Philadelphia Stock Exchange and Nasdaq OMX identify more than 30 eligible securities, the Index will only include the top 30 largest by market capitalization.
As of June 15, 2018 the Philadelphia Semiconductor Index included the following:
ADV MICRO DEVICES
ASML HLDG • BROADCOM INC.
CIRRUS LOGIC INC
K L A-TENCOR CORP
LAM RESEARCH CORP
MARVELL TECH GROUP
MKS INSTRUMENTS INC
MONOLITHIC POWER SYS
QORVO, INC. CMN
SILICON LABS INC
SMART GLOBAL HOLDINGS
Philadelphia Stock Exchange
The Philadelphia Stock Exchange is the oldest stock exchange in the United States. It was acquired by Nasdaq OMX in 2008. The Philadelphia Stock Exchange focuses on the trading of options. Its listings include equity options, index options and foreign exchange options.
The Philadelphia Semiconductor Index is one of several focused sector indexes created by the Philadelphia Stock Exchange. Other indexes include the PHLX Housing Sector, PHLX Oil Service Sector, PHLX Utility Sector and the PHLX Gold/Silver Sector Index.
Investing in the Philadelphia Semiconductor Index
The Philadelphia Semiconductor Index is a closely watched index for investors interested in technology chip stocks. Options on the Index are actively traded. Investors interested in investing in the Index’s components also have three popular exchange-traded funds (ETFs) to choose from. ETF index funds tracking the Philadelphia Semiconductor Index include the iShares SOX Index ETF (SOXX) managed by BlackRock, the Direxion Daily Semiconductor Bull 3X Shares (SOXL) managed by Rafferty Asset Management, LLC and the Direxion Daily Semiconductor Bear 3X Shares (SOXS) managed by Rafferty Asset Management, LLC.