The Best Semiconductor ETF to Invest $500 in Right Now

Core Insights - The semiconductor industry has shown strong performance over the past decade, with notable stocks like Nvidia, Advanced Micro Devices, and Broadcom leading the way [1] - Semiconductors are essential for a wide range of modern technologies, including cloud computing, artificial intelligence, data centers, and consumer electronics [2] - Investing in semiconductor companies can be approached through individual stock selection or by investing in a semiconductor-focused exchange-traded fund (ETF), such as the iShares Semiconductor ETF [3] iShares Semiconductor ETF Performance - The iShares Semiconductor ETF has demonstrated impressive average annual gains: 16.91% over 1 year, 27.95% over 3 years, 22.42% over 5 years, 26.12% over 10 years, and 22.65% over 15 years [4] - A hypothetical investment of $10,000 per year in this ETF, assuming a 17% annual return, could grow to approximately $82,000 after 5 years, $262,000 after 10 years, and $1.5 million after 15 years [5] Importance of Semiconductors - Semiconductors are increasingly vital to the modern economy, driving growth across various sectors [6] - The iShares Semiconductor ETF offers a convenient way for investors to gain exposure to the semiconductor sector while maintaining low fees [6] ETF Structure and Fees - The iShares Semiconductor ETF has a low expense ratio of 0.34%, translating to an annual fee of $34 for every $10,000 invested [7] - The ETF tracks the NYSE Semiconductor Index, investing at least 80% of its assets in the index's components, with the flexibility to invest up to 20% in futures, options, and cash equivalents [8]