SPX Exposure Is Fine - But Pairing It With SOXX Could Supercharge Growth

"The S&P 500 has been delivering stellar gains over the past few years. 2025 was supposed to be the year when the S&P 500 started cooling down, as it delivered 25%+ total returns back-to-back in 2023 and 2024. The downturn this spring ostensibly confirmed that thesis, but the market bounced back. SPX is now up 10.26% year-to-date, as of this writing."

"But even these gains can be amplified by having exposure to the hottest sector. The semiconductor sector is a key beneficiary of almost every growth trend at the moment. AI, data centers, electric vehicles, and defense are driving demand for more chips. The government is also pouring money into diversifying away from Taiwan and producing these chips domestically. Semiconductor stocks have delivered stellar returns over the coming years, and pairing them with a plain-vanilla S&P 500 position can boost your portfolio significantly."

"SOXX is a passively managed ETF that aims to track the ICE Semiconductor Index. It holds 35 U.S.-listed companies in the semiconductor sector and has been a major beneficiary of the chip stock boom. SOXX is up 143% over the past five years and has even outperformed the QQQ. Will the performance last forever? Likely not. Chip stocks are cyclical, and corrections can be quite hideous when the pendulum swings the other way."

The S&P 500 delivered consecutive strong returns in 2023 and 2024 and remained positive in 2025, with SPX up 10.26% year-to-date. The semiconductor sector is benefiting from multiple growth trends, including AI, data centers, electric vehicles, and defense, while government investment aims to expand domestic chip production and reduce reliance on Taiwan. Semiconductor stocks have produced substantial gains, and adding semiconductor exposure to a plain-vanilla S&P 500 allocation can materially boost portfolio returns. SOXX tracks the ICE Semiconductor Index, holds 35 U.S.-listed chip companies, has risen roughly 143% over five years, but chip stocks remain cyclical and can experience severe corrections.

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