SOXX vs TLT: iShares Semiconductor ETF vs iShares 20+ Year Treasury Bond ETF Comparison
Compare SOXX (iShares Semiconductor ETF) and TLT (iShares 20+ Year Treasury Bond ETF) by expense ratio, dividend yield, holdings, and more.
Key Differences
- 1Expense ratio: TLT 0.15% vs SOXX 0.35% (TLT is 0.20%p cheaper)
- 2Dividend yield: TLT 3.31% vs SOXX 0.69%
- 3Category: SOXX is Sector ETFs, TLT is Bonds & Commodities
- 4Holdings: SOXX 31 vs TLT 50
Conclusion
TLT has an overall advantage with lower expense ratio (0.15% vs 0.35%), higher dividend yield (3.31% vs 0.69%). However, SOXX also offers Benefits from AI/data center growth, making it worth considering depending on your portfolio goals.
| Category | SOXX | TLT |
|---|---|---|
| Fund Name | iShares Semiconductor ETF | iShares 20+ Year Treasury Bond ETF |
| Current Price | ... | ... |
| Category | Sector ETFs | Bonds & Commodities |
| Expense Ratio | 0.35% | 0.15% |
| Dividend Yield | 0.69% | 3.31% |
| Holdings | 31 | 50 |
SOXX Top Holdings
- 1. Broadcom
- 2. Nvidia
- 3. Intel
- 4. AMD
- 5. Qualcomm
TLT Top Holdings
- 1. U.S. 30-Year Treasury Bonds
- 2. U.S. 20-Year Treasury Bonds
SOXX Features
- •Semiconductor specialized
- •High growth potential
- •Benefits from AI
- •Cyclical
TLT Features
- •Long-term government bonds
- •Interest rate sensitive
- •Safe-haven asset
- •Hedging tool
Pros & Cons
SOXX
Advantages
- ✓ Benefits from AI/data center growth
- ✓ Technological innovation
- ✓ High growth potential
Disadvantages
- ⚠ Extreme volatility
- ⚠ Business cycle
- ⚠ Geopolitical risk
TLT
Advantages
- ✓ Rises when equities fall
- ✓ Safe-haven asset
- ✓ Excellent liquidity
Disadvantages
- ⚠ Rising interest rate risk
- ⚠ Inflation risk
- ⚠ High duration
Investment Strategy
Best For: SOXX
Growth portfolio; cycle timing important; keep below 10%
Best For: TLT
For risk hedging; bet on falling rates; 10-20% of total portfolio
Detailed Analysis
SOXX (iShares Semiconductor ETF) and TLT (iShares 20+ Year Treasury Bond ETF) They belong to different categories — Sector ETFs and Bonds & Commodities — representing distinct investment areas. SOXX: iShares Semiconductor ETF (SOXX) is an exchange-traded fund that provides investors with exposure to specific industry sectors. It carries an expense ratio of 0.35%. The fund offers a dividend yield of approximately 0.69%. The portfolio holds 31 securities. With an expense ratio of 0.35% and dividend yield of 0.69%, its top holdings include Broadcom, Nvidia, Intel. Key features include Semiconductor specialized, High growth potential, with Benefits from AI/data center growth being a major advantage. TLT: iShares 20+ Year Treasury Bond ETF (TLT) is an exchange-traded fund that provides investors with exposure to bonds, gold, and other commodities. It carries an expense ratio of 0.15%. The fund offers a dividend yield of approximately 3.31%. The portfolio holds 50 securities. With an expense ratio of 0.15% and dividend yield of 3.31%, top holdings include U.S. 30-Year Treasury Bonds, U.S. 20-Year Treasury Bonds. Notable features are Long-term government bonds, Interest rate sensitive, with Rises when equities fall as a core strength. In terms of expense ratio, TLT is 0.20%p cheaper, which can lead to significant cost savings through compounding over long-term investment. Over 20 years with a $100,000 investment, this difference can amount to thousands of dollars.
Investment Recommendation
SOXX is suitable for Growth portfolio; cycle timing important; keep below 10%, while TLT is suitable for For risk hedging; bet on falling rates; 10-20% of total portfolio. Since they are in different categories, holding both can provide portfolio diversification benefits. Adjust the allocation based on your risk tolerance and investment horizon. For beginners, we recommend a core-satellite strategy: choose a low-cost, well-diversified ETF as your core holding, and allocate the rest to satellite positions.
Key Summary
Both SOXX and TLT are excellent ETFs for their respective investment objectives. The key is to choose based on your investment goals, time horizon, and risk tolerance. Rather than focusing on a single metric (dividend yield, fees, etc.), evaluate from a holistic portfolio perspective. Use our rebalancing calculator to easily determine the optimal asset allocation including both ETFs.
SOXX vs TLT Investment Guide
Both SOXX and TLT are popular US ETFs, but they differ in investment strategy and portfolio role. SOXX has an expense ratio of 0.35%, while TLT charges 0.15%, giving TLT a cost advantage. In terms of dividend yield, SOXX offers 0.69% while TLT offers 3.31%, making TLT the better choice for income investors.
When choosing between the two, consider your investment goals, time horizon, and risk tolerance. If long-term growth is your priority, favor the ETF with lower fees and broader diversification. If you need steady cash flow, the higher-yielding ETF may be more suitable. You can also hold both in your portfolio for a complementary approach.
Regardless of which ETF you choose, maintaining your target allocation through regular rebalancing is key to long-term performance. Review your portfolio quarterly or semi-annually, and adjust if weights have drifted significantly. Our rebalancing calculator can automatically determine the buy/sell quantities for each holding.
5 Things to Check When Comparing ETFs
Expense Ratio: Even a 0.1% difference in fees can translate to thousands of dollars over long-term investing. When two ETFs track a similar index, the lower-cost option has the edge.
Tracking Index & Holdings: Even ETFs in the same category may track different indices. Review the top holdings and sector weights to find the best fit for your investment goals.
Dividend Policy: Compare dividend frequency (monthly vs quarterly), yield, and dividend growth rate. Monthly dividend ETFs may be preferable if you need regular cash flow.
Trading Volume & Liquidity: Sufficient daily trading volume ensures you can buy and sell at fair prices. Low-volume ETFs may have wider bid-ask spreads, increasing your trading costs.
Portfolio Role: Determine whether the ETF serves as a core or satellite holding in your portfolio, and size your position accordingly.