Want to tap into the booming semiconductor industry, but overwhelmed by individual stock picks? You’re not alone! From smartphones to smart homes, semiconductors are the brains behind modern technology. But picking the right chipmaker can be tricky.
Instead of betting on a single company, consider an ETF – an exchange-traded fund – that offers instant diversification. The iShares Semiconductor ETF (SOXX) could be your ticket to riding the semiconductor wave.
## Why the iShares Semiconductor ETF?
SOXX invests in a basket of leading U.S. semiconductor companies, tracking the NYSE Semiconductor index. This means you instantly own a piece of multiple players without the hassle of researching and buying individual stocks. And its historical performance is compelling.
Over the past 10 years, the iShares Semiconductor ETF has delivered average annual gains exceeding 20%. Of course, past performance doesn’t guarantee future results, and semiconductor stocks can be volatile. But this ETF provides exposure to some of the fastest-growing companies in the tech sector.
## A Look Inside the Portfolio
The ETF currently holds 31 stocks. Here are its top 10 holdings that make up more than 50% of the fund’s total assets: Advanced Micro Devices, Broadcom, Nvidia, Micron Technology, Qualcomm, Lam Research, Applied Materials, Intel, KLA Corp., and ASML.
## Is SOXX Right for You?
Investing in the iShares Semiconductor ETF provides instant diversification and exposure to a critical technology sector. If you are bullish on the long-term growth prospects of semiconductors and are looking for a relatively hands-off investment, SOXX could be a good fit for your portfolio. As with any investment, be sure to do your own research and consider your risk tolerance before investing.
