Semiconductors power AI and modern tech. Explore 6 top Semiconductor ETFs that can help you invest in this fast-growing industry.
Think about all the technology you use every day—your phone, your laptop, your smart TV. None of it would work without semiconductors. These tiny chips are what power modern technology, and with AI growing faster than ever, the demand for semiconductors is only getting bigger.
That’s why investors are paying attention. Instead of betting on just one company, you can invest in a semiconductor ETF—a fund that spreads your money across multiple companies in the industry. It’s a great way to lower risk while still benefiting from the sector’s growth.
If that sounds interesting, here are six semiconductor ETFs you should know about.
1. iShares Semiconductor ETF (SOXX) – The Industry Giant
Let’s start with SOXX—one of the biggest and most well-known semiconductor ETFs out there. It tracks the NYSE Semiconductor Index, which means you’re getting exposure to some of the biggest players in the industry.
Top Holdings: Nvidia, Broadcom, AMD, Qualcomm, Texas Instruments
Expense Ratio: 0.35%
1-Year Performance: +47%
5-Year Average Return: +28%
Why should you consider it?
Well, SOXX is packed with industry leaders. If you want a simple way to invest in semiconductors without having to pick individual stocks, this ETF gives you a solid mix of top companies. It has a strong track record and has delivered impressive returns over the years.
2. Invesco PHLX Semiconductor ETF (SOXQ) – Low Fees, High Potential
Next, we have SOXQ, and if you like the idea of keeping costs low, this might be the one for you. It follows the PHLX Semiconductor Sector Index, and here’s the big selling point—it has one of the lowest expense ratios out there at just 0.19%.
Top Holdings: Nvidia (14.5%), Broadcom (11%), AMD, Qualcomm, Intel
Expense Ratio: 0.19%
1-Year Performance: +55%
3-Year Average Return: +14%
So, why consider SOXQ?
If you want a budget-friendly ETF that still gives you exposure to all the big names, this one checks the box. It keeps fees low while still delivering strong returns.
3. SPDR S&P Semiconductor ETF (XSD) – A More Balanced Approach
Now, most ETFs tend to be dominated by a few big names, like Nvidia and AMD. But if you’d rather have something more balanced, check out XSD.
Instead of focusing mostly on the largest companies, XSD spreads its investments more evenly across the entire semiconductor industry.
Top Holdings: A broad mix with smaller allocations to major players
Expense Ratio: 0.35%
1-Year Performance: +35.5%
10-Year Average Return: +21%
Why does this matter?
If you like the idea of investing in the entire semiconductor industry—not just the biggest companies—XSD gives you a more diverse mix of stocks.
4. Invesco Dynamic Semiconductors ETF (PSI) – Targeting Growth
If you’re looking for more than just broad exposure, you might want to check out PSI.
This ETF doesn’t just track an index—it actively selects companies based on things like momentum, earnings growth, and other financial factors.
Top Holdings: Nvidia (5.5%), Broadcom, AMD, Qualcomm
Expense Ratio: 0.56%
1-Year Performance: +43%
10-Year Average Return: +22.25%
So, why would you pick PSI?
The expense ratio is a little higher, but that’s because this ETF actively picks companies that it believes have the most growth potential. If you’re looking for an ETF that focuses on winners, this one might be a great fit.
5. First Trust Nasdaq Semiconductor ETF (FTXL) – A Data-Driven Pick
FTXL takes a different approach compared to other ETFs. Instead of just tracking an index, it adjusts stock weightings based on financial performance—things like earnings growth and volatility.
Top Holdings: Nvidia (9.7%), Intel (9.3%), Broadcom (8.8%)
Expense Ratio: 0.60%
1-Year Performance: +40.8%
Since Inception (2016): +20.84%
Why would you choose FTXL?
If you like the idea of an ETF that prioritizes strong financials, this one takes a data-driven approach rather than just following the biggest companies by market cap.
6. VanEck Semiconductor ETF (SMH) – The High-Performance Choice
Finally, we have SMH, and if you’re looking for an ETF that has delivered strong performance, this one stands out.
SMH tracks the MVIS U.S.-Listed Semiconductor 25 Index, which includes some of the most actively traded semiconductor stocks worldwide.
Top Holdings: Nvidia (23%), Taiwan Semiconductor (13.3%), Broadcom, AMD
Expense Ratio: 0.35%
1-Year Performance: +75%
10-Year Average Return: +26.6%
Why consider SMH?
This ETF has been a top performer, consistently delivering some of the best returns among semiconductor ETFs. If you’re okay with a little more volatility in exchange for higher growth, SMH could be a great choice.
[Final Thoughts]
So, there you have it—six different ways to invest in semiconductors.
If you want a solid, all-around ETF, SOXX is a great pick.
If you prefer low fees, SOXQ is hard to beat.
If you want a more balanced approach, XSD gives you broad exposure.
Looking for a growth-focused ETF? PSI targets strong performers.
If you like a data-driven strategy, FTXL might be the way to go.
And if you’re after high performance, SMH has been one of the best in the sector.
Semiconductor ETFs give you a way to invest in this fast-growing industry while reducing risk compared to picking individual stocks.
With AI, self-driving cars, and new tech innovations happening every day, the semiconductor boom is far from over. So, if you believe in the future of technology, these ETFs might be worth considering.
