Are you looking to invest in the semiconductor industry but don’t know where to start? While Nvidia may be a popular pick, there are other great opportunities out there. One option to consider is the VanEck Semiconductor ETF (NASDAQ:SMH), which offers exposure to a range of top semiconductor stocks.
At Extreme Investor Network, we believe that SMH stands out due to its strong portfolio of semiconductor stocks with significant growth potential. The fund’s top 10 holdings include industry leaders such as Nvidia, Taiwan Semiconductor (NYSE:TSM), Broadcom (NASDAQ:AVGO), Qualcomm (NASDAQ:QCOM), ASML (NASDAQ:ASML), and Lam Research (NASDAQ:LRCX).
It’s worth noting that Nvidia has been a standout performer, with a 209.6% gain over the past year. However, other stocks like Broadcom and Taiwan Semiconductor have also seen impressive gains and are worth keeping an eye on. Broadcom, for example, has announced a 10-for-1 stock split, set to take place on July 12th, which could generate additional interest in the stock.
Taiwan Semiconductor, the world’s largest chipmaker, has seen a 75.2% increase in its stock price over the past year. Qualcomm, known for its cutting-edge semiconductors, is up 93.8% during the same period. Both ASML and Lam Research play pivotal roles in the semiconductor manufacturing process, providing essential equipment and tools.
One thing these companies have in common is their high Smart Scores, a proprietary stock scoring system developed by TipRanks. Seven of SMH’s top 10 holdings have Smart Scores of 8 or above, indicating strong outperformance potential.
In terms of performance, SMH has delivered impressive returns to investors over the years. With annualized returns of 25.5% over the past three years, 38.6% over five years, and 27.8% over 10 years, SMH outperforms broader market indexes like the Vanguard S&P 500 and the Technology Select Sector SPDR Fund.
With an expense ratio of 0.35%, SMH offers a cost-effective way to invest in the semiconductor sector. Analysts also seem bullish on the ETF, with a consensus rating of Moderate Buy and a price target that implies 7.5% upside potential from current levels.
In conclusion, SMH is a compelling investment opportunity for those looking to gain exposure to the semiconductor industry. Its diverse portfolio of top semiconductor stocks, strong track record of returns, and reasonable expense ratio make it a standout option for investors seeking growth potential in this sector. Consider adding SMH to your investment portfolio for exposure to top semiconductor stocks and potential long-term gains.