SOXX tracks a popular benchmark of companies that produce semiconductors, a crucial part of modern computing. Semiconductor chips act as the brains to numerous devices that we rely on today, including smartphones, calculators, computers, and much more. As technology continues to improve and expand, these chips will invariably be in demand to help power new devices. The fund focuses on U.S. stocks, but it also puts one-quarter of its assets in international firms, giving it relatively balanced exposure from a geographic perspective. Investors should note that this fund dedicates the majority of its assets to medium and large cap funds, meaning that it will be more volatile than a traditional large cap fund, but it also presents strong growth opportunities for those who believe in the semiconductor segment of our nation. Considering the focus of the fund, a decent level of diversification is present in this product as it holds close to 125 securities in total. Nevertheless, some of the fund's top names do account for a significant portion of the holdings and many of the top names are likely to be found in other products as well suggesting that this is probably inappropriate for those seeking to build a long-term buy and hold portfolio.