From Nasdaq: 2024-04-28 05:47:00

Investors often struggle to beat the S&P 500, but some exchange-traded funds (ETFs) like VanEck Semiconductor ETF (NASDAQ: SMH) have outperformed the index. This fund, with a history of over 12 years, focuses on semiconductor stocks in companies like Nvidia, Taiwan Semiconductor, and Broadcom. Despite the higher expense ratio, its strong track record justifies the cost.

The VanEck Semiconductor ETF’s success lies in its aggressive investments in key companies like Nvidia, Taiwan Semiconductor, and Broadcom. These firms dominate the chip market and drive user productivity, resulting in high returns. While riskier than broad S&P 500 ETFs, this focused fund offers market-beating performance with reduced risk in the chip industry.

Before investing in the VanEck Semiconductor ETF, consider expert recommendations. The Motley Fool Stock Advisor team has identified 10 top stocks for investors, excluding this ETF. Stock Advisor offers guidance on building a high-performing portfolio and has significantly outperformed the S&P 500 since 2002. This information can help investors make informed decisions about their investments.



Read more at Nasdaq: Want to Outperform the S&P 500 With Minimal Risk? Buy This ETF.