The Smartest Growth ETF to Buy Right Now -- and It's Up 50% in 2026

3 weeks ago 16

David Dierking, The Motley Fool

Tue, August 4, 2026 astatine 8:50 AM CDT 3 min read

The VanEck Semiconductor ETF (NASDAQ: SMH) is down astir 20% from its precocious reached conscionable a period ago. The artificial quality (AI) commercialized has cooled substantially arsenic investors look for tangible affirmative results from these companies, not conscionable assertive spending connected AI development.

That's what's partially caused Alphabet's and Meta Platforms' stocks to crater implicit the past fewer weeks. They've kept their ft connected the state with AI spending arsenic free-cash-flow maturation turns negative. Folks look to beryllium getting tense astir investing successful companies that whitethorn beryllium getting retired implicit their skis.

Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »

Semiconductor stocks person gotten dragged down alongside these names. But that doesn't needfully mean they're worthy avoiding. In fact, if you travel the Warren Buffett mantra to "be greedy erstwhile others are fearful," it mightiness really beryllium the smartest commercialized to marque close now.

Why investing successful semiconductor stocks present is simply a astute determination

The VanEck Semiconductor ETF tracks the MVIS US Listed Semiconductor 25 index. It gives investors vulnerability to immoderate of the largest companies that plan and manufacture the chips powering artificial quality and information centers. Top holdings include:

Nvidia: 21.7%
Taiwan Semiconductor Manufacturing: 9.5%
Broadcom:6.7%
Advanced Micro Devices: 5.4%
ASML Holdings: 5.1%

The apical 10 holdings marque up much than 70% of the portfolio, making this a highly concentrated and volatile ETF.

It's that attraction that has undoubtedly helped this portfolio implicit the past year. But the question present is whether this sector's existent maturation expectations warrant its existent valuation and whether those forecasts tin beryllium met. If it can, the VanEck Semiconductor ETF becomes an absorbing "buy the dip" opportunity. If not, this 20% correction was mostly justified.

Money is inactive moving into this ETF. That could mean investors presumption this arsenic an accidental alternatively than a crushed to exit. The larger factor, however, whitethorn beryllium that the underlying request communicative hasn't truly changed. Demand is inactive easy outstripping supply, and that gives spot companies pricing powerfulness for the foreseeable future. That pricing powerfulness should beryllium capable to prolong net maturation expectations.

But investors should expect a volatile ride. The marketplace is nary longer giving escaped passes to companies tangentially tied to the AI trade. It wants to spot results. If request remains robust, which seems likely, investors whitethorn person an accidental close present to bargain semiconductor stocks connected sale.

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