PHLX Semiconductor Sector Index (SOX)

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.

Understanding the PHLX Semiconductor Sector Index (SOX)

The PHLX Semiconductor Sector Index (SOX) was created by the Philadelphia Stock Exchange (PHLX) 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 PHLX.

To be included in the index, a security must meet the following criteria defined by the PHLX and Nasdaq OMX.

SOX Components

If the PHLX and Nasdaq OMX identify more than 30 eligible securities, the index will only include the top 30 largest by market capitalization. As of June 2021, the SOX was composed of the following securities:

SOX Index Components (June 2021)

Company Name

Security Symbol

ANALOG DEVICES CMN

APPLIED MATERIALS

ADV MICRO DEVICES

ASML HLDG NY REG

BROADCOM INC.

BROOKS AUTOMATION

CMC MATERIALS, INC.

ENTEGRIS INC

IPG PHOTONICS CORP

KLA CP CMN STK

LAM RESEARCH CORP

LATTICE SEMICOND

MICROCHIP TECHNOLOGY

MKS INSTRUMENTS INC

MONOLITHIC POWER SYS

MARVELL TECH GROUP

MICRON TECHNOLOGY

NVIDIA CORPORATION

NXP SEMICONDUCTORS

ON SEMICONDUCTOR

QUALCOMM INC

QORVO, INC. CMN

SILICON LABS INC

SKYWORKS SOLUTIONS

TERADYNE INC CMN

TAIWAN SEMICOND ADS

TEXAS INSTRUMENTS

Source: Nasdaq-OMX

Investing in the PHLX Semiconductor Sector Index (SOX)

The SOX 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 SOX is the Invesco PHLX Semiconductor ETF (SOXQ). Another is the VanEck Vectors Semiconductor ETF (SMH).

There are also leveraged and inverse leveraged ETFs tracking 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 (PHLX)

The PHLX is the oldest stock exchange in the United States. It was acquired by Nasdaq OMX in 2008 and focuses on the trading of options. Its listings include equity options, index options, and foreign exchange options.

The SOX is one of several focused sector indexes created by the PHLX. Other indexes include the PHLX Housing Sector, PHLX Oil Service Sector, PHLX Utility Sector, and the PHLX Gold/Silver Sector Index.