Forget Chip Stocks: The Best Way to Profit From AI Is This 31%-Yielding ETF

Core Insights - The VanEck Semiconductor ETF provides exposure to 26 chip stocks, making it a diversified investment option in the semiconductor industry [1][3] - The ETF has been designed to balance safety with the potential for higher returns compared to traditional bank savings or fixed-income instruments [2] Fund Overview - Established in 2011, the VanEck Semiconductor ETF invests nearly all its capital in 26 chip stocks, which makes it riskier than broader funds like the S&P 500 [4] - Approximately 20% of the fund is allocated to Nvidia, with just under 11% invested in Taiwan Semiconductor, while the remaining 24 holdings each represent less than 10% [4][5] Performance and Returns - The fund has averaged nearly 31% annual returns over the past 10 years, significantly outperforming the Nasdaq-100 tracker, which averaged just over 19% [7] - Despite a 34% loss in 2022 due to a bear market, the fund has experienced more years of positive returns than losses, with a notable 49% increase projected for 2025 [8][9] Cost Structure - The VanEck ETF has an expense ratio of 0.35%, which is lower than the average expense ratio of 0.44% for actively managed funds, providing a cost-effective option for investors [6][11] Investment Considerations - Investors in the VanEck Semiconductor ETF should be prepared for higher risk compared to S&P 500 or Nasdaq index investments and should maintain a long-term perspective to navigate occasional negative returns [10]