6 Best-Performing Semiconductor ETFs for December 2024
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
Riding high on favorable legislation (the CHIPS and Science Act) and strong demand for faster and more efficient chips for AI and cryptocurrency applications, the semiconductor industry outperformed the broader market by a wide margin in 2023. The second half of 2024 has shown some volatility in these stocks, however, as investors start to wonder if the hype around AI was at all overblown.
Many semiconductor stocks are growth stocks — that means they can go through wild price swings in the short term. But if you don’t have the risk appetite for individual stocks, you can also invest in semiconductor exchange-traded funds (ETFs). These ETFs expose investors to numerous parts of the semiconductor industry and can pad one stock’s downside with another’s gains.
6 best semiconductor ETFs by one-year performance
Below is a list of the top six ETFs that have substantial exposure to semiconductor stocks like NVIDIA, ordered by one-year performance.
Ticker | Company | Performance (Year) |
|---|---|---|
SMH | VanEck Semiconductor ETF | 49.27% |
SOXQ | Invesco PHLX Semiconductor ETF | 30.96% |
SHOC | Strive U.S. Semiconductor ETF | 29.74% |
PSI | Invesco Semiconductors ETF | 29.10% |
SOXX | iShares Semiconductor ETF | 24.93% |
XSD | SPDR Semiconductors ETF | 23.47% |
Source: Finviz. Data is current as of market close Nov. 29, 2024, and is intended for informational purposes only, not for trading purposes.
» Looking for diversification? Check out the top S&P 500 ETFs
NerdWallet rating 4.8 /5 | NerdWallet rating 5.0 /5 | NerdWallet rating 4.6 /5 |
Fees $0 per online equity trade | Fees $0.005 per share; as low as $0.0005 with volume discounts | Fees $0 |
Account minimum $0 | Account minimum $0 | Account minimum $0 |
Promotion None no promotion available at this time | Promotion Exclusive! U.S. residents who open a new IBKR Pro account will receive a 0.25% rate reduction on margin loans. Terms apply. | Promotion Earn up to $10,000 when you transfer your investment portfolio to Public. |
Types of semiconductor ETFs
All of the funds shown above are thematic ETFs, but there are a few other types of semiconductor ETFs to be aware of, such as single-stock ETFs and leveraged ETFs.
Single-stock ETFs, such as the GraniteShares 1.5x Long NVDA Daily ETF (NVDL), seek to deliver some multiple of the daily returns of an individual semiconductor stock. (The fund in question returns 1.5 times the daily return of NVIDIA, for example). These tend to be used for high-risk, short-term speculation on a single company.
Leveraged ETFs, such as the Direxion Daily Semiconductor Bull 3x Shares (SOXL), seek to deliver some multiple of the daily return of an entire index — three times the return of the NYSE Semiconductor Index, in the case of the Direxion fund. Like single-stock ETFs, they are often used for speculative trading.
Thematic ETFs, such as the First Trust Nasdaq Semiconductor ETF, are basically just semiconductor index funds, and may be used for more long-term investing.
» Need to zoom out? Check out our full list of the best-performing ETFs overall
How to buy semiconductor ETFs
If you don't have an investment account — such as a brokerage account or an individual retirement account (IRA) — you'll need one of those to invest in semiconductor ETFs. Then, you'll need to determine how semiconductor ETFs fit into your portfolio — and which kind you want. It's important to research ETFs before buying, just as you'd research stocks.
» Check out our list of the best brokers for ETFs
If you're day trading with a little bit of "play money," and you don't mind taking on a lot of risk for a potential short-term profit, single-stock ETFs or leveraged ETFs in the semiconductor space might be what you're looking for. If you're looking to invest in semiconductor stocks for the long-term, however, you may find a thematic semiconductor ETF to be less volatile.
» Ready to get started? Learn how to invest in ETFs
Neither the author nor editor owned shares in the aforementioned investments at the time of publication.
On a similar note...
