Why Buy One, When You Can Buy Them All With the SMH?

Ride this hot sector [View in browser]( BROUGHT TO YOU BY: Proprietary Data Insights Financial Pros Top Technology ETF Searches This Month Rank Name Searches #1 Vanguard Information Technology ETF 1525 #2 VanEck Vectors Semiconductor ETF 711 #3 iShares PHLX Semiconductor ETF 673 #4 Technology Select Sector SPDR Fund 251 #5 Fidelity MSCI Information Technology Index ETF 40 #ad [#1 Investment to Buy Right Now]( Brought to you by [Stansberry Research]( [#1 Investment to Buy Right Now]( Industry expert Marc Chaikin has developed a system that gives you the chance to double your money by predicting tomorrow’s stock ratings on Wall Street… today… in any market. [Click here to know more]( ETF Why Buy One, When You Can Buy Them All With the SMH? We found something absolutely fascinating… Searches for the semiconductor ETFs land in second and third amongst financial pros seeking technology ETFs. That means financial pros care about a very specific part of the technology sector more often than all the other broad technology ETFs save one. The semiconductor industry is expected to reach $1 trillion by the end of the decade, according to analysts at McKinsey & Company. It’s so essential to our economy that the senate recently passed a bill to subsidize U.S.-made semiconductor chips. Coming out of the pandemic, we learned just how fragile this boom and bust industry was. The bill will give upwards of $50 billion to domestic companies for semiconductor manufacturing, production, research, and development. One of the easiest ways investors gain exposure to the semiconductor industry is through ETFs. And one of the most compelling choices is the VanEck Semiconductor ETF (SMH). Check out our analysis below… [Top Stock: CryoMass (OTC: CRYM) (Ad)]( CryoMass' new technology has been called a "money machine" for its ability to churn out ultra-pure products for a niche agricultural market -- at one-third the cost! It's hard to overstate just how significant this breakthrough could be -- especially for a $61 billion industry. See what investors are doing to make the most of this opportunity. [Learn More.]( VanEck Semiconductor ETF (SMH) is designed to measure the performance of the MVIS US Listed Semiconductor 25 Index, which consists of 25 of the largest and most liquid stocks involved in semiconductor production and equipment. The average market cap of the companies in SMH is $152.4 billion. - Price-to-earnings ratio of 20.40x - Price-to-book ratio 5.29x - 99.5% of the stocks have a market cap larger than $5 billion - The top five holdings make up 35% of the ETFs weighting Here are the top five holdings in SMH and their weighting: As we noted earlier, the SMH is a concentrated ETF, and not one an investor should seek if they want diversification. However, if their goal is to gain exposure to the semiconductor space, then it doesn’t get much easier than SMH. If you invested $10K in SMH 10 years ago, it would be worth around $75K. And that’s after a significant sell-off in semiconductors over the last year. Regarding relative performance, SMH lags behind the QQQ and SPY this year. However, as you can see from the chart above, taking on that additional risk has paid off in the past. Trading SMH SMH is an actively traded ETF. On average, you can expect to see around 5.5 million shares trade. If you’re an options trader, you’ll be glad to hear that SMH has weekly, monthly, and LEAPS options available to trade. Investing In SMH One thing people often forget to look at when researching ETFs is the expense ratio. A high expense ratio can eat away at your potential gains. A good rule of thumb is to avoid ETFs with an expense ratio above 1%. SMH has an expense ratio of 0.35%. Dividends also play a factor in some investors' decision-making. Adding a stream of income via a dividend is always an attractive benefit. SMH pays its shareholders an annual dividend of $1.57 per share. Competition Is Stiff There are several other semiconductor ETFs out there. iShares Semiconductor ETF (SOXX): The largest semiconductor ETF, 0.43% expense ratio, $10K invested ten years ago now worth $84K, 35 positions in its holdings. $3.69 annual dividend. Invesco Dynamic Semiconductors ETF (PSI): passively-managed ETF, comprised of 30 stocks, charges an expense ratio of 0.56%. A $10K investment ten years ago now is worth $76K. $0.36 annual dividend. And while these two other ETFs are similar in performance and holdings. The portfolios are all weighted differently. Which offers a potential edge to any savvy investor who follows the space closely. Our Opinion 8/10 McKinsey & Company believes the semiconductor industry will be worth $1 trillion by the decade's end. Chip demand is expected to remain strong for years to come. Trying to figure out which chip maker will emerge as the king is difficult. And SMH offers a way for investors to gain exposure easily. And while the sector is down, we believe now is a buying opportunity. That’s why we like SMH over the next 12-24 months. [We want to hear from you! Let us know your thoughts by clicking here]( # [submit to reddit]( [submit to reddit]( [submit to reddit]( [submit to reddit]( To ensure delivery of all emails, [allow us on your list](. Update your email preferences or unsubscribe [here](. 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