In the dynamic world of technology, semiconductors are fundamental. They’re the heart of everything from smartphones to advanced computing systems. For investors looking to tap into this sector, Exchange-Traded Funds (ETFs) offer a diversified approach. Let’s delve into some of the top semiconductor ETFs: VanEck Vectors Semiconductor ETF (SMH), iShares Semiconductor ETF (SOXX), Invesco PHLX Semiconductor ETF (SOXQ), and First Trust NASDAQ Semiconductor ETF (FTXL).
| SYMBOL | NAME | FUND FAMILY |
|---|---|---|
| FTXL | First Trust Nasdaq Semiconductor ETF | First Trust Advisors L.P. |
| SOXQ | Invesco PHLX Semiconductor ETF | Invesco |
| SMH | VanEck Semiconductor ETF | VanEck |
| SOXX | iShares Semiconductor ETF | iShares |
Investment objectives
VanEck Vectors Semiconductor ETF (SMH)
SMH is known for its broad exposure to the semiconductor industry. It includes both U.S. and international semiconductor companies. This ETF focuses on major players, providing investors with access to leading companies driving innovation in the sector.
iShares Semiconductor ETF (SOXX)
SOXX tracks an index composed of U.S. companies in the semiconductor sector. It’s a solid choice for those looking to invest in domestic firms. SOXX encompasses a range of companies, from giants to smaller players, offering a comprehensive view of the U.S. semiconductor landscape.
| Ticker | Name | Weight |
|---|---|---|
| NVDA | NVIDIA CORP | 9.88 |
| AMD | ADVANCED MICRO DEVICES INC | 9.27 |
| AVGO | BROADCOM INC | 9.13 |
| QCOM | QUALCOMM INC | 6.12 |
| INTC | INTEL CORPORATION CORP | 5.07 |
Invesco PHLX Semiconductor ETF (SOXQ)
SOXQ mirrors the PHLX Semiconductor Sector Index, focusing on companies involved in the design, distribution, manufacture, and sale of semiconductors. This ETF is suitable for investors seeking exposure to both the production and equipment side of the semiconductor industry.
| TICKER | COMPANY | % OF FUND |
|---|---|---|
| NVDA | NVIDIA Corp | 9.89 |
| AMD | Advanced Micro Devices Inc | 9.28 |
| AVGO | Broadcom Inc | 9.16 |
| QCOM | QUALCOMM Inc | 7.49 |
| INTC | Intel Corp | 6.31 |
First Trust NASDAQ Semiconductor ETF (FTXL)
FTXL employs a unique approach by selecting semiconductor stocks based on liquidity, volatility, and earnings growth. It’s designed for investors looking for a blend of stability and growth potential in the semiconductor space.
| Security Name | Identifier | Weighting  |
| Broadcom Inc. | AVGO | 9.57% |
| QUALCOMM Incorporated | QCOM | 8.97% |
| Intel Corporation | INTC | 8.38% |
| Applied Materials, Inc. | AMAT | 7.89% |
| Texas Instruments Incorporated | TXN | 6.61% |
Conclusion
The semiconductor industry is at the forefront of technological advancement. Investing in semiconductor ETFs like SMH, SOXX, SOXQ, and FTXL can offer a gateway to this exciting sector. Each ETF has its strengths, catering to different investor preferences and objectives. As with any investment, thorough research and consideration of your investment strategy are paramount.
