Semiconductor ETFs

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Best Semiconductor ETFs

Semiconductor ETFs are the exchange-traded funds that invest in companies that manufacture semiconductors. It includes the companies that directly make semiconductors as well as the ones that supply goods to these semiconductors manufacturers.

The semiconductors company is experiencing a high growth rate due to the increased global demand for devices such as mobile phones, cars, military equipment, and other home appliances. The semiconductors sector has also benefited due to the rapidly increasing trends in artificial intelligence, cloud computing, and big data. As a result, semiconductor ETFs provide a good opportunity for investors to participate in the semiconductors industry.

Company Name
Last Price
1-Year Return
SOXXiShares PHLX Semiconductor ETF$366.07-32.04%
SMHVanEck Vectors Semiconductor ETF$215.44-30.82%
SOXLDirexion Daily Semiconductor Bull 3x Shares$11.73-82.85%
XSDSPDR S&P Semiconductor ETF$175.73-27.70%
SOXSDirexion Daily Semiconductor Bear 3x Shares$36.53-2.06%
PSIInvesco Dynamic Semiconductors ETF$105.06-30.95%
USDProShares Ultra Semiconductors$18.65-66.81%
FTXLFirst Trust Nasdaq Semiconductor ETF$55.13-29.78%
SSGProShares Ultra Short Semiconductors$23.3529.87%
ROBOROBO Global Robotics & Automation Index ETF$47.06-31.30%

Factors to Consider Before Investing in Semiconductor ETFs

Investors must consider the type of semiconductor ETFs based on their risk tolerance, time horizon, and overall investment goals. Moreover, before investing in semiconductor ETFs, investors must also take the assets under management and expense ratio into account. The top semiconductor ETFs should have high assets under management with a low expense ratio to maximize the returns on investment.

Additionally, the performance of semiconductor ETFs is also impacted by the regulatory environment and government regulations. For instance, many semiconductor stocks and ETFs have suffered headwinds due to the US-China trade war. Thus, the macroeconomic environment should also be considered before investing in semiconductor ETFs.

Which Semiconductor ETFs Should I Buy?

Of the few semiconductor ETFs that trade on the US stock exchanges, we have shortlisted the best semiconductor ETFs for you to select from. Investors must aim to focus on the semiconductor ETFs that are less volatile and generate high rates of return.

At the same time, the choice should also depend upon the expense ratio and cost of capital. Certain semiconductor ETFs are highly leveraged to increase the rates of return; however, it magnifies the risks as well to a large extent. Therefore, investors must be cautious while choosing between equity ETFs, leveraged equity ETFs, and inverse equity ETFs.