Investing in semiconductors can be exciting and at the same time daunting, as it can overwhelm investors trying to understand the numerous companies and technologies within the semiconductor industry. Today's video focuses on three exchange-traded funds (ETFs) that can make investing in semiconductors much easier. Here are some highlights from the video.
- SPDR S&P Semiconductor ETF (XSD 0.25%) is perfect for investors seeking to be diversified within the semiconductor industry. Its No. 1 position weighs less than 3.5%, and its top 10 holdings weigh less than 30%. The ETF currently has an expense ratio of 0.35% and roughly 41 holdings.
- My favorite of the three is the VanEck Semiconductor ETF (SMH 0.83%). It has 25 holdings and an expense ratio of 0.35%, and the top 10 positions make up over 55% of its total weight, making this ETF a bit more concentrated. The top two holdings are Taiwan Semiconductor Manufacturing (TSM -0.24%) and Nvidia (NVDA 1.64%).
- iShares Semiconductor ETF (SOXX 0.76%) has 35 holdings and an expense ratio of 0.43%, and its top 10 holdings make up over 55% of the total portfolio. This ETF is another option for investors who want to be diversified with numerous companies and concentrated in the top 10 holdings.
Click the video below for my full thoughts and analysis.
*Stock prices used were the midday prices of Jan. 14, 2022. The video was published on Jan. 14, 2022.
