Semiconductor ETFs are generating scorching returns as stocks like Nvidia (NASDAQ:NVDA) reach new heights. However, not all semiconductor ETFs are the same. Two funds can both focus on semiconductors, but there may be vast differences in the types of semiconductor stocks they hold, the weightings of these stocks within their portfolios, their returns over time, fees, and more that investors must take into account.
Let’s take a look at two popular semiconductor ETFs, the iShares Semiconductor ETF (NASDAQ:SOXX) and the First Trust Nasdaq Semiconductor ETF (NASDAQ:FTXL). They both invest in the space but take different approaches and have generated different returns over time. I’m bullish on both ETFs, but one is the superior choice based on several factors that we’ll evaluate in this article.
What Is the SOXX ETF’s Strategy?
SOXX is an index ETF from BlackRock’s (NYSE:BLK)…