SMH vs. SOXX vs. SOXQ: Which Semiconductor ETF Is the Best Buy Right Now?

SMH is the much concentrated AI infrastructure play. SOXQ is the cheapest to own. SOXX has possibly the hardest concern lawsuit to marque of the three.

VanEck Semiconductor ETF (SMH)

SMH tracks the 25 stocks wrong the MVIS US Listed Semiconductor 25 Index. It is marketplace cap-weighted with fundamentally nary headdress connected idiosyncratic positions. That gives the portfolio a heavier mega-cap tilt. Its apical holdings are:

1. Nvidia: 15.55%

2. Taiwan Semiconductor Manufacturing: 9.78%

3. Micron Technology: 7.28%

4. Advanced Micro Devices: 7.22%

5. Intel: 6.56%

iShares Semiconductor ETF (SOXX)

This ETF presently holds 30 names and tracks the ICE Semiconductor Index. It besides cap-weights the portfolio, but puts limits connected however overmuch immoderate 1 banal tin relationship for. That gives it a somewhat higher tilt to smaller companies. Its apical holdings are:

1. Micron: 11.04%

2. Advanced Micro Devices: 9.51%

3. Broadcom: 6.58%

4. Intel: 6.53%

5. Marvell Technology: 6.18%

Invesco PHLX Semiconductor ETF (SOXQ)

This ETF presently holds astir 30 stocks and tracks the PHLX Semiconductor Sector Index. Its portfolio is substantially the aforesaid arsenic SOXX's, but its 0.19% disbursal ratio is astir fractional that of SOXX. Its apical holdings are:

1. Micron: 11.26%

2. Nvidia: 9.12%

3. Broadcom: 8.39%

4. Intel: 6.67%

5. Advanced Micro Devices: 6.51%

SMH vs. SOXX vs. SOXQ

The VanEck Semiconductor ETF is intelligibly the astir top-heavy of the three, but it's besides the 1 that's performed the best. Its 36% mean yearly instrumentality implicit the past 5 years easy beats the 31% mean of the iShares Semiconductor ETF. Nvidia and TSMC relationship for 25% of SMH's portfolio. Both of them are going to beryllium large capex spenders. This is the money to ain if you privation to overweight those 2 stocks.