SMH is the pick for the entire chip sector: it holds the 25 largest US chip companies, is passively managed at a 0.35% annual fee and has outperformed higher-fee indices; after heavy selling it is still up more than 40% year-to-date and 100% since the speaker bought it earlier last year.
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Therefore, my choice for a fund that tracks the entire chip sector is the VanEck Semiconductor ETF, its ticker symbol is SMH.
This fund includes the 25 largest publicly traded chip companies in the United States, ranked by market capitalization, with each company representing approximately 20% of the fund.
That's why Nvidia stocks make up about 20% of the fund, while the rest of its investments include Taiwan Semiconductor, AMD, and Micron stocks, as well as all the other companies I've covered in this video so far.
However, unlike the other funds I mentioned, the SMH fund is passively managed with an annual fee of 0.35%, despite outperforming indices that typically charge higher fees.
Even after the heavy selling, the fund is up more than 40% since the start of the year, and 100% since I took it earlier last year, showing that smartly focused and efficiently managed funds are a great way to get rich without relying on luck.
For example, the SMH box overlaps with both the EUV and Chat boxes by approximately 30%. The SMH fund allocates about 40% because it covers the entire semiconductor industry, is passively managed, and has very low fees.