"The iShares Semiconductor ETF is the largest and oldest fund on this list, with net assets of approximately $20.6 billion and an inception date of July 10, 2001. It tracks the NYSE Semiconductor Index and carries an expense ratio of 0.34%."
"The fund's construction is market-cap-weighted, meaning the largest, most liquid chip companies dominate the portfolio. NVIDIA accounts for roughly 8% of the fund, followed closely by Broadcom at just over 8%, Micron at about 7%, and AMD at near 6%."
"The performance data reflects just how much the sector has accelerated. SOXX has returned 33% year-to-date and 133% over the trailing one-year period."
"The tradeoff is concentration. The top two holdings together represent a meaningful share of the portfolio, creating meaningful concentration in the names that have driven the AI chip narrative."
In 2026, three semiconductor ETFs are vying for investor interest, driven by a projected $500 billion revenue from generative AI chips. The iShares Semiconductor ETF, the largest with $20.6 billion in assets, tracks the NYSE Semiconductor Index and has a 0.34% expense ratio. Its market-cap-weighted structure leads to significant concentration in major companies like NVIDIA and Broadcom. While this concentration may benefit investors betting on large players, it poses risks regarding valuation. The fund has shown impressive returns, reflecting the sector's growth amid rising chip demand.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]