2 Best Semiconductor ETFs to Buy Now, as the Artificial Intelligence (AI) Revolution Powers Chip Demand
The semiconductor (or chip) stock group has strong long-term growth potential, driven in large part by the robust adoption of artificial intelligence (AI) across industries. The global AI market is projected to increase at a brisk compound annual growth rate (CAGR) of more than 28% from 2024 through 2030, according to Statista.
There are likely to be some huge stock winners in the chip space over the long term. But it can be very challenging to pick individual stocks in fast-evolving technology areas. So, some investors might want to invest in a basket of semiconductor stocks. One way to do so is to buy an exchange-traded fund (ETF). ETFs are bought and sold like stocks, but their diversification makes them less risky than individual stocks.
Most investors should stick with a semiconductor ETF that has a decent trading history. It's good to see how an ETF held up in a down market, such as 2022. So, in order to make the cut for this article, a semiconductor ETF had to have at least a three-year trading history. That left five ETFs. A review of the short-, medium-, and longer-term performances of these ETFs found that one stood out: VanEck Semiconductor ETF (NASDAQ: SMH). It was the top performer in all time periods examined.
Source Fool.com
