This ETF Has Beaten Every Stock in the Magnificent Seven This Year. Is It Too Late to Buy?

Core Insights - The VanEck Semiconductor ETF has significantly outperformed the "Magnificent Seven" stocks in 2023, achieving a year-to-date return of 33.2% compared to the 17.5% gain of the Magnificent Seven [5][4] - The ETF's top holdings, including Nvidia, TSMC, and Broadcom, account for nearly 40% of its value and have been key players in the AI boom [8][9] - The VanEck Semiconductor ETF has a strong historical performance, gaining over 2,000% since its inception in 2011, far exceeding the S&P 500's less than 600% increase during the same period [10] ETF Performance - The VanEck Semiconductor ETF aims to replicate the MVIS U.S.-listed Semiconductor 25 Index and has a long track record of outperforming the S&P 500 [6][10] - The ETF's current price-to-earnings ratio is 39, which is more affordable compared to popular AI stocks like Tesla and Palantir Technologies, and only moderately higher than the S&P 500's P/E of 28 [11] Market Dynamics - Semiconductor companies are crucial to the AI revolution, providing the necessary computing power for AI applications, and are expected to benefit from ongoing data center investments [9] - The VanEck Semiconductor ETF's diversification across the semiconductor industry positions it well for continued outperformance against both the S&P 500 and the Magnificent Seven [12]