Share-split context: A forward split was recorded on Mar 7, 2024 with coefficient 3. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

ETF Education Report: ISHARES SEMICONDUCTOR ETF (SOXX)

What this ETF is trying to do

The ISHARES SEMICONDUCTOR ETF (ticker: SOXX) is an exchange-traded fund that focuses on the semiconductor industry. This means it holds many different companies that make the computer chips used in electronics. Based on its top holdings, this fund includes large companies like Intel Corp, Advanced Micro Devices Inc, Micron Technology Inc, and NVIDIA Corp.

What the numbers show

The current price of one share is $582.82. When looking at how this ETF has performed, it is important to look at two different numbers: the price return and the total return.

• Price Return: This measures only how much the share price has moved.

• Total Return: This includes both the share price movement and any cash distributions paid out.

For SOXX, the numbers show strong growth:

• Year-to-Date (YTD): The price return is approximately 93.53%, while the total return is approximately 93.86%.

• One Year: The price return was approximately 106.74%, and the total return was approximately 107.40%.

• Three Year: The price return was approximately 264.12%, and the total return was approximately 270.36%.

This ETF has a history of "forward splits." For example, on March 7, 2024, a split occurred where one old share became three new shares. In a forward split, the price per share drops proportionally, but your total ownership stays the same. This is a normal event and not a loss of value.

Income and distribution explanation

Some investors look for "distributions," which are cash payments made by the ETF. SOXX has a distribution yield of approximately 0.21%. These payments usually happen four times a year (quarterly). While these provide cash, the yield is relatively low compared to the overall price growth of the fund.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly over time. StockValueFinder uses an "erosion-risk score" to help monitor this. For SOXX, the erosion score is 100, and the label shows "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• The fund has shown very high price and total returns over the last one, three, and five years.

• The erosion-risk measurement is rated as "good."

Cons

• The distribution yield is quite low (0.21%), so it may not be the primary choice for investors seeking high regular income.

Beginner takeaway

SOXX is an ETF that tracks companies in the semiconductor chip industry. It has experienced significant price growth recently. When studying this ETF, remember that the total return is a more complete picture of performance than the price return alone because it includes cash distributions.

***

*Disclaimer: This report is for educational purposes only. It does not provide financial advice and does not recommend buying, selling, or holding any security.*