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.

Index Methodology

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

ANALOG DEVICES

APPLIED MATERIALS

ASML HLDG • BROADCOM INC.

CIRRUS LOGIC INC

CYPRESS SEMICONDUCTR

ENTEGRIS INC

INTEGRATED DEVICES

INTEL CORP

K L A-TENCOR CORP

LAM RESEARCH CORP

MARVELL TECH GROUP

MAXIM INTEGRATED

MELLANOX TECHNOLOGIE

MICROCHIP TECHNOLOGY

MICRON TECHNOLOGY

MKS INSTRUMENTS INC

MONOLITHIC POWER SYS

NVIDIA CORPORATION

ON SEMICONDUCTOR

QORVO, INC. CMN

QUALCOMM INC

SILICON LABS INC

SKYWORKS SOLUTIONS

SMART GLOBAL HOLDINGS

TAIWAN SEMICONDUCTOR

TERADYNE INC

TEXAS INSTRUMENTS

XILINX, INC.

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.

RELATED TERMS
  1. Philadelphia Stock Exchange - PHLX

    The Philadelphia Stock Exchange, now known as Nasdaq OMX PHLX, ...
  2. Semiconductor

    A semiconductor is a material which conducts electricity more ...
  3. Federal Reserve Bank Of Philadelphia

    The Federal Reserve Bank of Philadelphia is responsible for the ...
  4. Morris Chang

    The founder, chairman and CEO of Taiwan Semiconductor Manufacturing ...
  5. Active Index Fund

    Active index funds track an index fund with an additional layer ...
  6. Regional Stock Exchange

    A regional stock exchange is a place outside of a country's primary ...
Related Articles
  1. Investing

    USD vs. SOXL: Comparing Leveraged Semiconductor ETFs

    Discover and compare two semiconductor exchange-traded funds. Learn about their purpose, strategy, characteristics and investor suitability.
  2. Investing

    Why Chip Stocks Are Cheap Amid Pricey Techs

    Semiconductor stocks outperformed the S&P 500 and the tech sector during the market's Tuesday rebound.
  3. Investing

    Chip Stocks At Record Highs Still a Bargain

    Big Upside: chips stocks may be dramatically undervalued
  4. Trading

    SOX Semiconductor Index at 17-Year Resistance

    The chip index is within 20 points of multi-decade resistance, predicting a reversal and decline that could last for months.
  5. Trading

    Weakness in Chip Stocks Is Creating a Buying Opportunity

    Nearby support and strong underlying uptrends on the charts of key semiconductor stocks suggest that now could be the time to buy.
  6. Investing

    Top 3 Performing ETFs for 2017

    Direxion's leveraged ETFs are our top performers for 2017.
  7. Investing

    Global Semiconductor Sales Hit New Highs in 2016

    After a slow start, the global semiconductor market picked up steam, reaching $338.9B in sales.
  8. Insights

    5 Chip Stocks At Risk In Expanding Trade War

    U.S. semiconductor stocks could face big declines in a US-China trade war.
  9. Trading

    Chip Stocks at Support After 3-Week Pullback

    The PHLX Semiconductor Index (SOX) has settled and could bounce strongly following this week's Micron earnings.
  10. Investing

    A New Take on Dow Theory: Chips, Not Rails (DIA, IYT)

    Strategas suggests semiconductors, not transportation, are "a better measure of market health in an economy increasingly based on information technology."
RELATED FAQS
  1. What are "fabless" chip makers and why are they important in the semiconductor market?

    Learn about fabless chip makers and why some of the biggest names in the semiconductor industry have adopted the fabless ... Read Answer >>
  2. How do indexes determine which stocks are removed or added to them?

    Stock indexes are formed based on the kinds of stocks or financial securities they want to track. For example, the Standard ... Read Answer >>
  3. Who's in charge of managing exchange-traded funds?

    An exchange-traded fund (ETF) is a security that tracks an index but has the flexibility of trading like a stock. Just like ... Read Answer >>
  4. How can I buy an S&P 500 fund?

    Looking for access to the S&P 500? Learn how to access an S&P 500 index fund or ETF. Read Answer >>
Trading Center