SOXX vs VBR Fund Comparison

A comparison between SOXX and VBR based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on SOXX vs VBR

Here's an in depth look at the differences between iShares PHLX Semiconductor ETF ($SOXX) and Vanguard Small-Cap Value Index Fund ETF Shares ($VBR).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

64% FI Score
  • soxx
  • ETF
  • Sector Equity
  • Technology

iShares PHLX Semiconductor ETF

Expenses: 0.46% (Better than 1% of similar funds)

This is an OK choice for a Technology Sector Equity fund. See why »

86% FI Score
  • vbr
  • ETF
  • US Stocks
  • Small Value

Vanguard Small-Cap Value Index Fund ETF Shares

Expenses: 0.07% (Better than 1% of similar funds)

This is an OK choice for a Small Value US Stocks fund. See why »

Both $SOXX and $VBR are categorized as ETFs. ETFs have an added bonus over mutual funds of being more widely available. Mutual funds are often limited to only the issuing investment brokerage. Since these are both ETFs, you may be able to find these at a wider number of investment apps and websites.

The biggest disadvantage of ETFs is that some platforms only allow you to purchase ETFs in whole shares. So if an ETF is going for $75, you may need to invest in increments of $75. Most 401(k)'s allow for investing down to the penny, but you'll want to verify your platform allows for "fractional ETF Shares".

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

SOXX VBR
Market Score 8.2 /10 9.9 /10
Category Score 0.0 /10 5.0 /10
Total 8.2 14.9

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

For each fund we've created a "diversification score" – a metric to indicate how closely each funds asset allocation matches it's benchmark. For example, an S&P 500 fund would have a diversification score of 10 if it's fully in line with the actual S&P 500.

The diversification score for SOXX is 0.0/10, while VBR has a diversification score of 6.6/10.

In other words, VBR more closely matches it's benchmark.

Winner: $VBR

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, SOXX has an expense ratio of 0.46% while VBR has an expense ratio of 0.07%. In this case, both of these funds have a similar fee.

Winner: $VBR (barely)

Fund Size Comparison

Both SOXX and VBR have a similar number of assets under management. SOXX has 2.85 Billion in assets under management, while VBR has 26.1 Billion.

Minafi categorizes both of these funds as large funds. Fund size is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

Winner: tie

Which Should You Choose? SOXX or VBR?

Comparing these two funds isn't an apples to apples comparison. SOXX is a Sector Equity Technology fund, while VBR is a US Stocks Small Value fund.

If you're aiming to build a diversified, low-fee, tax-optimized portfolio you likely won't be choosing between these two funds since they're different enough.

Running both of these funds through Minafi's FI Score algorithm, gives SOXX a score of 64 and VBR a score of 86.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$SOXX

iShares PHLX Semiconductor ETF

64

Read More
Ratings
Rating Type Rating
Diversification Score 0 /10
Expense Ratio Score 8 /10
Expense Rating 5 /10
Market Score 8 /10
Category Score 0 /10
Overview
Overview Details
Fund Type ETF
Inception Date Jul-10-2001
Exchange NASDAQ
Expense Ratio 0.460%
Net Assets 2.85 Billion
Yield 1.30%
Holdings
Description Info
Market Sector Equity
Category Technology
Sectors
  • Basic Materials 0.00%
  • Communication Services 0.00%
  • Consumer Cyclicals 0.00%
  • Consumer Defensive 0.00%
  • Energy 0.00%
  • Financial Services 0.00%
  • Healthcare 0.00%
  • Industrials 0.00%
  • Real Estate 0.00%
  • Technology 100.00%
  • Utilities 0.00%
Regions
  • Asia Developed 3.72%
  • Asia Emerging 6.50%
  • Europe Developed 3.55%
  • North America 86.23%

$VBR

Vanguard Small-Cap Value Index Fund ETF Shares

86

Read More
Ratings
Rating Type Rating
Diversification Score 7 /10
Expense Ratio Score 10 /10
Expense Rating 9 /10
Market Score 10 /10
Category Score 5 /10
Overview
Overview Details
Fund Type ETF
Inception Date Apr-27-2016
Exchange NYSE ARCA
Expense Ratio 0.070%
Net Assets 26.1 Billion
Yield 2.50%
Holdings
Description Info
Market US Stocks
Category Small Value
Sectors
  • Basic Materials 5.49%
  • Communication Services 1.69%
  • Consumer Cyclicals 11.51%
  • Consumer Defensive 4.95%
  • Energy 2.11%
  • Financial Services 21.30%
  • Healthcare 6.85%
  • Industrials 18.88%
  • Real Estate 10.90%
  • Technology 10.07%
  • Utilities 6.26%
Regions
  • Asia Emerging 0.00%
  • Latin America 0.47%
  • North America 99.14%
  • United Kingdom 0.39%

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