What Is the PHLX Semiconductor Sector Index (SOX)?
The PHLX Semiconductor Sector Index (SOX) is a capitalization-weighted index composed of 30 semiconductor firms. The firms within the index have main enterprise operations that contain the design, distribution, manufacture, and sale of semiconductors. The index is designed to trace the efficiency of listed semiconductors.
- The PHLX Semiconductor (SOX) is an fairness index composed of firms primarily concerned within the manufacturing and sale of semiconductor merchandise similar to microchips, computer systems, and networking gear.
- The SOX is a modified market capitalization-weighted index listed on the Philadelphia Stock Exchange in cooperation with Nasdaq OMX.
- Tech buyers can look to a number of ETF merchandise that observe the SOX.
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 assist from its proprietor Nasdaq OMX. Real-time knowledge is supplied day by day from the PHLX.
To be included within the index, a security should meet the next standards outlined by the PHLX and Nasdaq OMX.
- A inventory should have enterprise operations that primarily concentrate on the design, distribution, manufacture, and sale of semiconductors.
- Stocks should be listed on the Nasdaq, New York Stock Exchange (NYSE), NYSE American, or the CBOE Exchange.
- Shares can embody widespread shares, bizarre shares, American depositary receipts (ADRs), shares of useful curiosity, or restricted partnership pursuits.
- Securities should have a minimal market capitalization of not less than $100 million.
- Members should have traded not less than 1.5 million shares in every of the six calendar months main as much as the reference date.
- The safety has been buying and selling for not less than three months on a registered market, not together with the month of preliminary itemizing.
- The safety should have listed choices on a registered market within the U.S. or be eligible to take action.
- The safety can’t be in the midst of bankruptcy proceedings.
If the PHLX and Nasdaq OMX determine greater than 30 eligible securities, the index will solely embody the highest 30 largest by market capitalization. As of June 2021, the SOX was composed of the next securities:
|SOX Index Components (June 2021)|
|ANALOG DEVICES CMN||ADI|
|ADV MICRO DEVICES||AMD|
|ASML HLDG NY REG||ASML|
|CMC MATERIALS, INC.||CCMP|
|IPG PHOTONICS CORP||IPGP|
|KLA CP CMN STK||KLAC|
|LAM RESEARCH CORP||LRCX|
|MKS INSTRUMENTS INC||MKSI|
|MONOLITHIC POWER SYS||MPWR|
|MARVELL TECH GROUP||MRVL|
|QORVO, INC. CMN||QRVO|
|SILICON LABS INC||SLAB|
|TERADYNE INC CMN||TER|
|TAIWAN SEMICOND ADS||TSM|
Investing within the PHLX Semiconductor Sector Index (SOX)
The SOX is a intently watched index for buyers taken with expertise chip shares. Options on the index are actively traded. Investors taken with investing within the index’s parts can look into exchange traded funds (ETFs).
A well-liked ETF index fund that tracks the SOX is the iShares PHLX Semiconductor ETF (SOXX) managed by BlackRock. Another is the VanEck Vectors Semiconductor ETF (SMH).
There are additionally leveraged and inverse leveraged ETFs monitoring 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 within the United States. It was acquired by Nasdaq OMX in 2008 and focuses on the buying and selling of choices. Its listings embody fairness choices, index choices, and international alternate choices.
The SOX is one in all a number of targeted sector indexes created by the PHLX. Other indexes embody the PHLX Housing Sector, PHLX Oil Service Sector, PHLX Utility Sector, and the PHLX Gold/Silver Sector Index.