What Is the PHLX Semiconductor Sector Index (SOX)?
The PHLX Semiconductor Sector 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. The index is designed to track the performance of listed semiconductors.
- The PHLX Semiconductor (SOX) is an equity index composed of companies primarily involved in the production and sale of semiconductor products like microchips, computers, and networking equipment.
- The SOX is is a modified market capitalization-weighted index listed on the Philadelphia Stock Exchange in cooperation with Nasdaq-OMX.
- Tech investors can look to several ETF products that track the SOX index.
Understanding the PHLX Semiconductor Sector Index
The PHLX Semiconductor Sector 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. 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 (NYSE), 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 include daily trading volume and having options listed.
Details on the Index and its methodology are provided through the Nasdaq OMX Global Indexes website.
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 Q1 2021, the PHLX Semiconductor Sector Index included the following:
|SOX Index Components (Q1 2021)|
|Company Name||Security Symbol|
|ANALOG DEVICES CMN||ADI|
|ADV MICRO DEVICES||AMD|
|ASML HLDG NY REG||ASML|
|CMC MATERIALS, INC.||CCMP|
|INPHI CORP CMN||IPHI|
|KLA CP CMN STK||KLAC|
|LAM RESEARCH CORP||LRCX|
|MKS INSTRUMENTS INC||MKSI|
|MONOLITHIC POWER SYS||MPWR|
|MARVELL TECH GROUP||MRVL|
|QORVO, INC. CMN||QRVO|
|SILICON LABS INC||SLAB|
|TERADYNE INC CMN||TER|
|TAIWAN SEMICOND ADS||TSM|
Investing in the PHLX Semiconductor Sector Index
The PHLX Semiconductor Sector 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 can look into exchange-traded funds (ETFs).
A popular ETF index fund that tracks the PHLX Semiconductor Sector Index is the iShares PHLX Semiconductor ETF (SOXX) managed by BlackRock. Another is the VanEck Vectors Semiconductor ETF (SMH)
There are also levered and inverse levered ETFs on the index: 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.
The Philadelphia Stock Exchange
The Philadelphia Stock Exchange (PHLX) 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 PHLX Semiconductor Sector 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.
Nasdaq OMX. "SOX Index Weighting." Accessed April 9, 2021.