1 month ago
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Jeremy Bowman, The Motley Fool
Tue, Apr 29, 2025, 1:45 AM 4 min read
In This Article:
If you're feeling overwhelmed by the banal marketplace close now, you're not alone. The S&P 500 had 1 of its fastest drops connected grounds successful aboriginal April, and the Nasdaq Composite hurtled into a carnivore market, falling much than 20% from its precocious conscionable successful February.
President Donald Trump's commercialized warfare with conscionable astir each U.S. trading spouse and signs of a weakening system person enactment investors into a antiaircraft position, and it's unclear erstwhile oregon however this play of uncertainty is going to end.
Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now. Continue »
At times similar these, picking idiosyncratic stocks is particularly hard truthful it's worthy considering investing successful exchange-traded funds (ETF) arsenic an alternative. These investments commercialized similar stocks, but they bash the hard enactment of choosing the stocks for you, typically for a nominal fee. ETFs are either actively managed, meaning a money manager volition bargain and merchantability the stocks wrong it, oregon they way an scale similar the S&P 500.
If you person $250 successful disposable funds and you're looking for a tech ETF to put successful to capitalize connected the caller sell-off, 1 of the champion choices retired determination is the VanEck Semiconductor ETF (NASDAQ: SMH).
The VanEck Semiconductor ETF tracks the MVIS US Listed Semiconductor 25 Index, which aims to travel the wide show of companies successful the semiconductor accumulation and instrumentality industry.
The ETF has a agelong way grounds of beating the market, arsenic the illustration beneath shows.
As you tin spot from the chart, not lone has the VanEck ETF trounced the S&P 500, but it's besides beaten its rival iShares Semiconductor ETF (NASDAQ: SOXX). That spread betwixt the SMH and the SOXX is owed to the SMH's accrued concentration.
The array beneath shows the fund's apical 10 holdings.
| 1. Nvidia | 19.6% | 6. Texas Instruments | 4.8% |
| 2. Taiwan Semiconductor | 11.1% | 7. Advanced Micro Devices | 4.8% |
| 3. Broadcom | 7.8% | 8. Analog Devices | 4.6% |
| 4. Qualcomm | 5.3% | 9. Applied Materials | 4.6% |
| 5. ASML | 4.9% | 10. KLA | 4.3% |
Data source: VanEck Semiconductor ETF.
As you tin see, the ETF is highly concentrated successful Nvidia, TSMC, and Broadcom stocks, which marque up astir 40% of the fund.
All 3 of those stocks person performed good successful caller years and are considered leaders successful the AI boom. They person besides driven the fund's caller outperformance, which has travel from the AI enactment of those 3 stocks.
The SMH's way grounds speaks for itself arsenic fewer stocks, fto unsocial ETFs, person jumped by 600% implicit the past decade. However, past show does not warrant aboriginal returns successful the banal market.
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