Amid the focus on artificial intelligence (AI), investors have again taken an interest in the chip industry. Since that technology requires the most advanced chips to run many applications, stocks such as Nvidia and Taiwan Semiconductor Manufacturing (TSMC) have attracted significant attention.

Despite their popularity, many prefer the safety of tech ETFs to individual stocks. The semiconductor industry is notoriously cyclical, and experienced investors know that any bull market will eventually give way to a downturn, much like the one experienced in 2022.

Fortunately, both the VanEck Semiconductor ETF (NASDAQ: SMH) and the iShares Semiconductor ETF (NASDAQ: SOXX) offer the diversification that can mitigate these risks. However, one of these exchange-traded funds is likely to yield higher returns.

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Source Fool.com