Three Top Semiconductor ETFs to Buy and Hold Now

Jun 12, 2023

Artificial intelligence is the “next big thing” on the Street.

So far, it’s had an incredible impact on tech stocks, like Nvidia and Advanced Micro Devices, for example. Even better, as the AI boom changes everything about everything, it’s also creating a big opportunity for ETFs with a focus on semiconductors.

After all, without semiconductor chips, there is no AI story. For example, Nvidia’s A100 and H100 GPUs are the chips that allow AI software to make decisions, and quickly process information very quickly. So, it comes as no surprise that semiconductor ETFs are pushing aggressively higher.

Look at the VanEck Vectors Semiconductor ETF (SMH), for example.

Over the last few weeks, the SMH ETF ran from about $120 to $149. All thanks to the AI boom. From here, it could see higher highs, with AI showing no signs of cooling. With an expense ratio of 0.35%, the SMH ETF tracks the performance of companies involved in semiconductor production and equipment. Some of its top holdings include Nvidia, Advanced Micro Devices, Broadcom, Lam Research, Qualcomm, and Micron to name a few.

Or, take a look at the iShares Semiconductor ETF (SOXX).

Over the last few weeks, SOXX ran from about $410 to $493, and could also test higher highs, with the AI boom. With an expense ratio of 0.35%, this ETF tracks the investment results of an index composed of U.S.-listed equities in the semiconductor sector. Some of its top holdings also include Nvidia, Broadcom, Advanced Micro Devices, Qualcomm, and Lam Research, too.

There’s also the SPDR S&P Semiconductor ETF (XSD).

The XSD ETF has been just as explosive, running from about $175 to $214 recently. It could also test higher highs with the AI story. With an expense ratio of 0.35%, the ETF seeks to track the total return performance of the S&P® Semiconductor Select Industry Index. Some of its top holdings include Credo Technology, Nvidia, Marvell Technology, Rambus, Advanced Micro Devices, and ON Semiconductor to name a few.

Until the artificial intelligence story cools off, related stocks and ETFS could see higher highs.

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