XLK Offers Broader Tech Diversification, While SOXX Targets Semiconductor Stocks. Which Is the Better Investment?

Both the iShares Semiconductor ETF (NASDAQ:SOXX) and the State Street Technology Select Sector SPDR ETF (NYSEMKT:XLK) aim to capture U.S. technology growth, but their approaches differ: SOXX zeroes in on the semiconductor segment, while XLK provides diversified exposure across the entire technology sector.

For investors comparing these two, the choice comes down to cost, risk profile, and the breadth of tech exposure each fund delivers.

Beta measures price volatility relative to the S 500. The 1-yr return represents total return over the trailing 12 months.

Continue reading

Source Fool.com