The two largest semiconductor exchange-traded funds (ETFs) are the iShares Semiconductor ETF (NASDAQ: SOXX) and the VanEck Semiconductor ETF (NASDAQ: SMH). Combined, they have more than $115 billion in **** ets under management and are the two most popular ways to play the current chip rally.
At a high level, the two are pretty similar. Both have portfolios of around 25 to 30 names. They have nearly the same expense ratio. You might think the two are interchangeable.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
They're not. In fact, some very simple differences in their construction strategies produce two very different portfolios. One factor in particular makes me think that the iShares Semiconductor ETF is the better choice moving forward.
These two ETFs hold mostly the same individual companies. SOXX holds a couple more, but that's only because of a slight variation in how the funds define semiconductor companies.
At a high level, the two are pretty similar. Both have portfolios of around 25 to 30 names. They have nearly the same expense ratio. You might think the two are interchangeable.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
They're not. In fact, some very simple differences in their construction strategies produce two very different portfolios. One factor in particular makes me think that the iShares Semiconductor ETF is the better choice moving forward.
These two ETFs hold mostly the same individual companies. SOXX holds a couple more, but that's only because of a slight variation in how the funds define semiconductor companies.
3 months ago
