Futu Research | ETF Investment Research
[Semiconductor ETF] Investing in the next 10x growth opportunity
The Current State of Semiconductor Investment
In 2026, semiconductor prices are soaring—are you ready?
Storage chips have been soaring all the way.
Micron and SanDisk shares have repeatedly hit record highs, as demand for memory in AI servers has surged explosively. The three major memory manufacturers have sold out their entire production capacity, with orders booked through 2028. South Korea's SK Hynix jumped 11.5% in a single day, while Samsung Electronics rose 6.33%, both setting new all-time highs—memory chips are currently experiencing an unprecedented price‑increase cycle.
The CPU "Big Three" all delivered a strong performance.
Intel is vying for Tesla's AI chip foundry order, while AMD and ARM are accelerating their efforts to capture the AI market. With all three major players stepping up, the AI computing power race has been fully ignited.
Characteristics of Investing in Semiconductor ETFs
Investing has never been a matter of luck; it's about understanding the right direction. As the foundational infrastructure of the AI era, semiconductors boast a clear and well‑defined long‑term growth narrative. For investors who share this outlook, now is a moment worth serious attention. The most flexible way to tap into this investment trend is to invest once in the leading companies across the entire semiconductor value chain—memory, CPUs, GPUs, and foundry services—eliminating the need to pick individual stocks and reducing the risk of missteps, all while accessing this AI‑driven semiconductor supercycle with the lowest possible entry barrier.
Diversify risk with a basket of leading stocks.
"Don't put all your eggs in one basket" is a golden rule of investing. While the semiconductor industry boasts a bright outlook, the operational risks of individual companies should not be overlooked; shifts in technology roadmaps, patent litigation, or missteps in management decisions can all trigger sharp stock price volatility. The advantage of semiconductor ETFs lies in their inherent diversification: they typically hold dozens of companies spanning various segments of the industry chain, such as:
IC design (GPU/AI chips): NVIDIA, AMD, Broadcom
CPU processor: Intel, AMD, Qualcomm
Storage chips: Micron Technology, SanDisk, Western Digital, Seagate Technology
Wafer foundry: TSMC (Taiwan Semiconductor)
Semiconductor equipment: ASML, Applied Materials
Comparison of Popular Semiconductor ETFs in 2026
The U.S. market offers a wide array of semiconductor ETFs—so which one is the best fit for you? We've selected two of the highest‑traded U.S.-listed semiconductor ETFs as examples and conducted an in-depth comparison across key metrics such as fund size, expense ratios, and portfolio holdings, helping you gain a clear understanding of what sets these ETFs apart.
Taking the VanEck Vectors Semiconductor ETF (SMH) and the iShares Semiconductor ETF (SOXX)—the two highest‑traded semiconductor ETFs as of May 12, excluding leveraged ETFs—as examples, we see that although both aim to track the semiconductor industry, they differ slightly in their constituent stock weights and concentration levels.
U.S. Equity Semiconductor ETFs: SMH vs SOXX
Compare Items | VanEck Semiconductor ETF (SMH) | iShares Semiconductor ETF (SOXX) |
|---|---|---|
Publisher | VanEck | iShares (BlackRock) |
Tracking Index | MVIS US Listed Semiconductor 25 Index | ICE Semiconductor Index |
Assets Under Management (AUM) | Approximately 25 billion US dollars | Approximately 16 billion USD |
Total Expense Ratio (TER) | 0.35% | 0.35% |
Number of shares held | About 25 individuals | About 30 individuals |
Top Five Holdings (Reference) | NVIDIA, Taiwan Semiconductor, Broadcom, ASML, Micron | NVIDIA, Broadcom, AMD, Qualcomm, Applied Materials |
Investment Style | High Concentration: The top two holdings may account for more than 30% of the portfolio, resulting in relatively high volatility. | Relatively diversified: Equity weightings are evenly distributed, better reflecting the overall performance of the industry. |
How to Quickly Invest in Semiconductor ETFs
Having read this far, you already know more about semiconductor ETFs than 90% of people. Next, just follow these three steps:
Step 1: Open an account — Futu can complete the account opening online in as little as 3 minutes, with new customers eligible for a reward of up to 8,600.
Step 2: Deposit Funds — With a low minimum of just HK$10,000, even budget-conscious investors can get started with ease.
Step 3: Buy — Open the Niuniu App, go to Market > ETF Gainers List > U.S./Hong Kong, and select the "Featured List – Gainers" to easily identify strong-performing semiconductor stocks and other thematic investments, then tap to join the global bull market!
Disclaimer:
"Futubull" is a one-stop financial investment trading platform, with securities services provided by Futu Securities International (Hong Kong) Limited. This content does not constitute any offer, solicitation, recommendation, opinion, or guarantee regarding securities, financial products, or instruments, and has not been reviewed by the Securities and Futures Commission of Hong Kong. Investing involves risks; investors should carefully read the fund information and relevant documents, including their risk factors.
