The semiconductor sector is regaining momentum, with stocks like Nvidia (NASDAQ: NVDA) rallying as part of a broader push to reclaim their strong performance from early 2024.
Recent strength in the sector follows the conclusion of key trade negotiations between the United States and China. Investors are optimistic that the outcome may lead to eased restrictions on semiconductor exports, a development that could significantly benefit companies in the space.
Several exchange-traded funds (ETFs) present a timely opportunity for investors seeking exposure. These ETFs offer access to the semiconductor industry and position investors to benefit from the sector’s growing role in artificial intelligence (AI).
Therefore, Finbold has highlighted the following two semiconductor ETFs worth considering for long-term investment:
iShares Semiconductor ETF (SOXX)
The iShares Semiconductor ETF tracks the ICE Semiconductor Index and offers exposure to major U.S.-listed chipmakers. It includes a mix of designers and manufacturers such as Nvidia, Broadcom (NASDAQ: AVGO), and Advanced Micro Devices (NASDAQ: AMD).
This fund offers a balanced blend of growth and stability by investing in established industry leaders and up-and-coming players.
Additionally, its broad coverage across the semiconductor supply chain gives investors front-row access to developments across the sector.
Year-to-date, SOXX has gained nearly 5%, valued at $227.32 at close of the last session.
VanEck Semiconductor ETF (SMH)
The VanEck Semiconductor ETF (SMH) is a compelling choice for those seeking more targeted exposure to global semiconductor leaders. It includes heavyweight names like Nvidia, Taiwan Semiconductor Manufacturing Company (NYSE: TSMC), ASML (NASDAQ: ASML), and Broadcom.
SMH’s global footprint, particularly its inclusion of international leaders like ASML, appeals to growth-oriented investors looking for international diversification.
As of the latest trading session, SMH is priced at $262.07, up nearly 2% in the last 24 hours and more than 7% YTD.
Both ETFs stand out for their diverse nature, making them well-positioned to capitalize on evolving demands in the AI-driven semiconductor space.
Featured image via Shutterstock
