Revenue distribution by industry:

• Semiconductor manufacturing: approx. 60%
• Semiconductor equipment: approx. 25%
• Other technologies (e.g. software, services): approx. 15%

TOP 3 markets and their percentage shares:

• USA: approx. 50%
• China: approx. 20%
• South Korea: approx. 15%

The iShares Semiconductor ETF (SOXX) mainly invests in companies operating in the semiconductor industry. This industry includes both the manufacturing of semiconductors and the production of equipment needed for semiconductor manufacturing.

The USA is the largest market for the ETF, attributed to the strong presence of leading semiconductor companies and technological innovations. China and South Korea follow as significant markets, being both major producers and consumers of semiconductor products. These markets benefit from the growing demand for electronics and technological solutions worldwide.

iShares Trust - iShares Semiconductor ETF (NasdaqGM:SOXX) is not a company that produces products, but an exchange-traded fund (ETF).

The iShares Semiconductor ETF invests in a variety of companies within the semiconductor industry. These companies have production facilities worldwide, including in the USA, Taiwan, South Korea, Japan, and Europe.

The ETF itself does not have its own production facilities, but holds shares in companies involved in semiconductor production.

Current Strategy: Diversification and Technology Focus
Focus on: Sustainable Investments and Innovations in the Semiconductor Industry

The iShares Semiconductor ETF (SOXX) pursues a strategy that aims for diversification within the semiconductor industry. The ETF invests in a broad range of companies engaged in the manufacturing and development of semiconductor products. This allows investors to benefit from the overall growth dynamics of the industry.

Another focus is on sustainable investments and supporting companies that develop innovative technologies. The ETF also considers ESG criteria (Environmental, Social, Governance) to ensure long-term stable and responsible investments.

Additionally, the ETF focuses on identifying companies that benefit from megatrends such as digitization, the Internet of Things (IoT), and artificial intelligence. These trends continue to drive demand for semiconductor solutions, offering potential for future growth.

Main raw materials: Silicon, Copper, Gold, Palladium

Countries of origin:

• Silicon: China, USA
• Copper: Chile, Peru
• Gold: South Africa, Australia
• Palladium: Russia, South Africa

The iShares Semiconductor ETF invests in companies in the semiconductor industry that rely on a variety of raw materials. Silicon is the primary raw material for the production of semiconductor chips and is mainly imported from China and the USA. Copper is used for wiring and connections in the chips and is predominantly sourced from Chile and Peru.

Gold and Palladium are also important materials for semiconductor manufacturing, especially for coating and contacts. These metals are mainly sourced from South Africa, Australia, and Russia. Dependence on these raw materials makes the semiconductor industry vulnerable to geopolitical tensions and price fluctuations in the commodity markets.

Current price of the ETF: $650 (estimated for 2025)
Annual growth of the semiconductor industry: 8-10% (2023-2025)
Market share of iShares in the ETF segment: approximately 40% (2023)

The iShares Semiconductor ETF (SOXX) benefits from the strong performance of the semiconductor industry, which has seen significant growth in recent years. The ETF's competitive advantage lies in its broad diversification and focus on leading companies in the semiconductor sector that benefit from technological innovations and increasing demand for semiconductor products.

iShares has established itself as one of the leading providers in the ETF segment, as evidenced by a significant market share. This position enables the ETF to benefit from economies of scale and offer a cost-effective structure that is attractive to investors.

In addition, the SOXX ETF offers high liquidity and transparency, making it a preferred choice for investors looking to invest in the semiconductor sector. The competitive advantage is further strengthened by iShares' strong brand presence and the continuous adjustment of the portfolio to market trends.

Institutional Investor Share: approximately 85% (estimated for 2025 based on historical data)

Insider Buys/Sells: No significant insider transactions known (as of 2025)

The iShares Semiconductor ETF (SOXX) traditionally has a high proportion of institutional investors. This is because ETFs in general are preferred by institutional investors such as pension funds, hedge funds, and investment companies to gain broad market exposure.

Insider transactions are less relevant for ETFs because unlike individual companies, they do not have insiders in the traditional sense. The management and structure of an ETF like SOXX are controlled by the fund company, and there are no "insiders" who could buy or sell shares of the ETF.

Market share of iShares Semiconductor ETF (SOXX): 12% (2025, estimated)

Main competitors and their market shares:

1. VanEck Vectors Semiconductor ETF (SMH): 15%
2. SPDR S&P Semiconductor ETF (XSD): 10%
3. Invesco Dynamic Semiconductors ETF (PSI): 8%
4. First Trust Nasdaq Semiconductor ETF (FTXL): 7%
5. ProShares Ultra Semiconductors (USD): 5%

The iShares Semiconductor ETF (SOXX) holds a significant market share of around 12% in the Semiconductor ETF sector. This positions it as one of the leading ETFs in this sector, although behind the VanEck Vectors Semiconductor ETF (SMH), which leads with a 15% market share.

The "moat" or competitive advantage of SOXX lies in its broad diversification and the strong brand presence of iShares. This provides investors with a certain level of security and stability, as the ETF covers a variety of leading semiconductor companies.

In comparison, the VanEck Vectors Semiconductor ETF (SMH) may have a stronger moat due to a more focused selection of high-growth potential companies. Other ETFs like SPDR S&P Semiconductor ETF (XSD) and Invesco Dynamic Semiconductors ETF (PSI) also offer specific advantages, such as dynamic adaptation to market changes or a stronger weighting towards innovative companies.

Overall, SOXX has a solid, but not insurmountable moat. The competition also offers strong products with different focuses that can vary depending on market developments and investor preferences.

Technological Development: Strong growth

Market Demand: High

Industry Growth: 8% CAGR (2023-2028)

The iShares Semiconductor ETF (SOXX) invests in companies in the semiconductor industry that play a key role in modern technology. This industry benefits from the increasing demand for semiconductors in various sectors such as automotive, consumer electronics, and telecommunications.

Technological advancements in areas such as Artificial Intelligence, Internet of Things, and 5G are driving the demand for advanced semiconductor solutions. This creates robust growth potential in the coming years.

Additionally, the semiconductor industry is expected to grow at an average annual growth rate (CAGR) of around 8% between 2023 and 2028. This positive forecast is supported by continuous investments in research and development as well as expansion into new markets.

Overall, the iShares Semiconductor ETF could represent an attractive investment opportunity, especially for investors looking to participate in the long-term growth story of the semiconductor industry.

Dividend Yield: 1.2% (2024)
Payout Frequency: Quarterly

The iShares Semiconductor ETF (SOXX) regularly pays dividends to its investors. The dividend yield was recently around 1.2% in 2024. These distributions occur quarterly and are relatively reliable, as they are based on the dividends of the semiconductor companies included in the ETF.

The reliability of dividend payments depends on the performance of the companies included in the ETF. Since the semiconductor sector can be volatile, dividends may fluctuate in economically challenging times. Nevertheless, many of the large companies in the ETF have strong balance sheets, contributing to the stability of the payouts.