Views on Semiconductor ETFs/stocks?

US Market & Sectors
1

Hi Folks! :wave:

Recently I came across Semiconductor ETFs as it’s a high-growth industry and quite attractive given the recent developments by the US administration. Few options include:

  • SOXX : iShares Semiconductor ETF
  • SMH : VanEck Semiconductor ETF
  • Last 5Y returns : SMH 255% vis-a-vis SOXX 166%
  • Expense ratio, Beta etc. are the same for both ETFs; just the underlying stock constituents are slightly different.

Any thoughts on which ETF would be the best bet? Or picking individual stocks would be the best route?

Looking forward to know your thoughts! :brain: :rocket:

2

SMH is a bit more top heavy with Nvidia at ~20%. SOXX is a bit more diverse, but the holdings percentages are more evenly spread. SMH has been outperforming SOXX because of its heavy weight in Nvidia.

I have my split as 50% Nvidia, 50% SOXX.

2 Likes
3

I agree, SOXX is much more stable taking a balanced approach. Btw, for ETFs, I generally prefer the ones with more volume, that to me is a better indicator of trust.

4

interesting, and how do you judge the volume for ETFs?

5

Anything above 1M is good to me. I already was invested in NVDA separately, so just took SOXX route for a balanced diversification.

1 Like
6

cool :handshake: :+1:

7

SOXX is good choice. but the expense ratio is still a bit higher when compared to other Semiconductor ETF.

8

true, the returns should justify such high expense ratio at any time :crossed_fingers: