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Michael Burry’s SOXX short: Key stocks driving his bearish bet

Michael Burry's SOXX short: Key stocks driving his bearish bet

Earlier this month, the iconic investor Michael Burry, famed for his prescient role in “The Big Short,” redirected his bearish sentiments from the broader market to a more targeted sector. 

Third-quarter securities filings unveiled a significant shift for Burry’s Scion Asset Management, marking a departure from its bearish stance on the S&P 500 and Nasdaq-100, resulting in a noteworthy loss. 

The filings exposed a new direction as Scion strategically entered the market with put options valued at $47.4 million, targeting the iShares Semiconductor ETF (SOXX). 

Today, on November 23, we delve into a deeper analysis of this exchange-traded fund (ETF), exploring the specific stocks that constitute its substantial portions, commonly known as weighting.

SOXX’s biggest stock holdings

The SOXX ETF tracks the top 30 US companies predominantly engaged in chipmaking, standing as one of the largest semiconductor ETFs. 

According to data retrieved from its official website, the top five stocks ranked by their weighting in the index include AMD (NASDAQ: AMD), Broadcom (NASDAQ: AVGO), Nvidia (NASDAQ: NVDA), Intel (NASDAQ: INTC), and Texas Instruments (NASDAQ: TXN).

AMD’s weight in the portfolio currently sits at 9.15%, with a market value of more than $864.4 million. AVGO and NVDA account for 8.31% and 7.79% of the SOXX’s weight, respectively, translating to $785.6 million and $736.3 million in market value.

Top 5 SOXX constituents by weighting. Source: ishares.com

INTC and TXN have a weight of 7.63% and 5.63%, respectively. 

While the SOXX consists of a total of 30 stocks, the mentioned five carry the most significant weighting. Consequently, they exert the most substantial influence on the overall performance of the ETF. 

That said, Michael Burry’s bearish position against the semiconductor sector is largely dependent on the performance of these stocks.

Other chipmakers that take a notable portion of the popular semiconductor ETF include Qualcomm (NASDAQ: QCOM), Kla Corp (NASDAQ: KLAC), Micron Technology (NASDAQ: MU), and Taiwan Semiconductor (NYSE: TSM), among many others. 

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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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