Micron’s 800% Return Powers 147.8% SOXX Gain Despite Concentration Risk
MU•Micron Technology, representing 8.4% of SOXX, returned 800% over the past year, driving a substantial portion of the ETF’s 147.8% gain. Its outsized performance highlights the fund's high concentration risk, with the five largest holdings accounting for 35.7% of assets.
1. Micron’s Outsize Contribution
Micron Technology, which makes up 8.4% of the iShares Semiconductor ETF (SOXX), achieved an 800% return over the past year. That single performance added the largest layer to the ETF’s 147.8% total gain, underscoring Micron’s pivotal role in driving returns.
2. ETF Performance and Other Contributors
SOXX’s overall 147.8% gain was supported by a handful of top holdings. Intel, at 6.1% of the fund, returned 470%, while 27 of the 28 largest positions posted positive returns, with a median gain of 139% among that group.
3. Concentration and Risk Implications
The five largest holdings account for 35.7% of SOXX assets, and the ten largest make up 59.4%. Such concentration means investors’ outcomes are heavily tied to a few names, amplifying both upside potential and downside exposure.
