PHLX Semiconductor Sector Index (SOX)
What Is the PHLX Semiconductor Sector Index (SOX)?
The PHLX Semiconductor Sector Index (SOX) is a capitalization-weighted index made out of 30 semiconductor companies. The companies in the index have primary business operations that include the design, distribution, production, and sale of semiconductors. The index is designed to follow the performance of listed semiconductors.
Understanding the PHLX Semiconductor Sector Index (SOX)
The PHLX Semiconductor Sector Index (SOX) was made by the Philadelphia Stock Exchange (PHLX) in 1993. It keeps on being managed by the Exchange with support from its owner Nasdaq. Real-time data is provided daily from the PHLX.
To be remembered for the index, a security must meet the accompanying criteria defined by the PHLX and Nasdaq.
- A stock must have business operations that principally center around the design, distribution, production, and sale of semiconductors.
- Stocks must be listed on the Nasdaq, New York Stock Exchange (NYSE), NYSE American, or the CBOE Exchange.
- Shares can incorporate common stocks, ordinary shares, American depositary receipts (ADRs), shares of beneficial interest, or limited partnership interests.
- Securities must have a base market capitalization of something like $100 million.
- Individuals must have traded somewhere around 1.5 million shares in every one of the six calendar months leading up to the reference date.
- The security has been trading for something like three months on a registered market, excluding the period of initial listing.
- The security must have listed options on a registered market in the U.S. or then again be eligible to do as such.
- The security can't be in that frame of mind of bankruptcy procedures.
SOX Components
In the event that the PHLX and Nasdaq distinguish in excess of 30 eligible securities, the index will just incorporate the main 30 biggest by market capitalization. As of April 2022, the SOX was made out of the accompanying securities:
| SOX Index Components (April 2022) | |
|---|---|
| Company Name | Security Symbol |
| ADV MICRO DEVICES | AMD |
| AMKOR TECHNOLOGY | AMKR |
| ANALOG DEVICES CMN | ADI |
| APPLIED MATERIALS | AMAT |
| ASML HLDG NY REG | ASML |
| AZENTA, INC. | AZTA |
| BROADCOM INC. | AVGO |
| ENTEGRIS INC. | ENTG |
| II VI INC | IIVI |
| INTEL CORP | INTC |
| IPG PHOTONICS CORP | IPGP |
| KLA CP CMN STK | KLAC |
| LAM RESEARCH CORP | LRCX |
| LATTICE SEMICOND | LSCC |
| MARVELL TECH GROUP | MRVL |
| MICROCHIP TECHNOLOGY | MCHP |
| MICRON TECHNOLOGY | MU |
| MONOLITHIC POWER SYS | MPWR |
| NVIDIA CORPORATION | NVDA |
| NXP SEMICONDUCTORS | NXPI |
| ON SEMICONDUCTOR | ON |
| POWER INTEGRATN | POWI |
| QORVO, INC. CMN | QRVO |
| QUALCOMM INC | QCOM |
| SILICON LABS INC | SLAB |
| SKYWORKS SOLUTIONS | SWKS |
| TAIWAN SEMICOND ADS | TSM |
| TERADYNE INC CMN | TER |
| TEXAS INSTRUMENTS | TXN |
| WOLFSPEED, INC. CM | WOLF |
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 parts can investigate exchange traded funds (ETFs).
A famous ETF index fund that tracks the SOX is the Invesco PHLX Semiconductor ETF (SOXQ). Another is the VanEck Vectors Semiconductor ETF (SMH).
There are likewise 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 most seasoned stock exchange in the United States. It was acquired by Nasdaq in 2008 and centers around the trading of options. Its listings incorporate equity options, index options, and foreign exchange options.
The SOX is one of several engaged sector indexes made by the PHLX. Different indexes incorporate the PHLX Housing Sector, PHLX Oil Service Sector, PHLX Utility Sector, and the PHLX Gold/Silver Sector Index.
Features
- The SOX is a modified market capitalization-weighted index listed on the Philadelphia Stock Exchange in cooperation with Nasdaq Inc.
- Tech investors can shift focus over to several ETF products that track the SOX.
- The PHLX Semiconductor (SOX) is an equity index made out of companies principally engaged with the production and sale of semiconductor products like microchips, PCs, and networking equipment.
