"The VanEck Semiconductor ETF ( NASDAQ:SMH) is one of the best-performing ETFs of the last five years and has gained 53% in the past year, beating the S&P 500. It jumped over 220% in the past five years and is exchanging hands for $378 today. As the semiconductor sector boomed, this ETF had some of its best days. It is set for another winning year and could beat the S&P 500 again."
"The fund offers exposure to 25 stocks and tracks the MVIS US Listed Semiconductor 10% Capped ESG Index. It is a pure-play semiconductor ETF that is stacked with the leading chip stocks. The fund has $3.8 billion in assets under management and an expense ratio of 0.35%. In the last three years, SMH has achieved an average annual return of 46.83%."
"Since it holds only 25 stocks, the top 10 holdings make up 75% of the portfolio, and they include industry stalwarts such as Nvidia, Advanced Micro Devices, Broadcom, Micron Technology, Qualcomm Inc., and Intel. These companies are delivering the kind of growth that justifies their valuation and carry a high upside potential. It builds a portfolio based on the size, which means the largest companies have the highest holding. Hence, Nvidia and Taiwan Semiconductor Manufacturing account for about one-third of the portfolio."
The S&P 500 closed a winning year and is expected to climb as much as 20% this year, with a projection to reach 7700 in 2026. The index achieved double-digit gains for three consecutive years and continues to reflect overall U.S. economic exposure. Several exchange-traded funds are noted to have outperformed the S&P 500, offering diversification possibilities. The VanEck Semiconductor ETF (SMH) gained 53% in the past year, rose over 220% in five years, holds 25 stocks, and tracks the MVIS US Listed Semiconductor 10% Capped ESG Index. SMH has $3.8 billion AUM, a 0.35% expense ratio, and a three-year average annual return of 46.83%.
Read at 24/7 Wall St.
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