The VanEck Semiconductor ETF has seen an impressive increase of over 48% in 2024, outperforming the Nasdaq Composite index, which is up 18% year to date. This ETF tracks the 25 largest American-listed stocks in the semiconductor industry, including companies like Nvidia, AMD, and Intel. It has holdings in chip designers, foundries, and equipment manufacturers, with about 80% of its holdings in American companies.
The VanEck Semiconductor ETF has an expense ratio of 0.35%, which may be higher compared to some other index-linked ETFs. However, its performance over the years has been remarkable, with a compound annual growth rate of 28%. This surpasses the returns of the S&P 500 and Dow Jones Industrial Average ETFs.
The high demand for semiconductors in various industries like AI, autonomous driving, and cloud computing is expected to continue, making the VanEck Semiconductor ETF a promising investment for long-term investors. It provides exposure to a diverse range of semiconductor companies and has shown consistent growth over the years.