Buy These Top-Ranked Semiconductor ETFs as We Head Into 2026

As we near 2026, a look back at 2025 reveals that the global semiconductor market was propelled by unprecedented demand. The primary engine for this growth has undoubtedly been the artificial intelligence (AI) revolution, fueling an insatiable demand for high-performance computing chips in data centers and beyond.   

This surge got duly reflected in the data — global semiconductor sales reached a solid $72.7 billion in October 2025 alone, marking a stunning 27.2% year-over-year increase, with the United States at the forefront of this upswing. Evidently, the nation captured a significant portion of this boom, with sales from the Americas region soaring 59.6% year over year in October, far outpacing any other region, as reported by the Semiconductor Industry Association (“SIA”) on Dec. 4, 2025.

This surge has been boosting industry titans, including NVIDIA NVDA, the AI and GPU powerhouse; Advanced Micro Devices AMD, competing strongly in CPUs and GPUs; ASML Holding ASML, provider of the EUV lithography machines needed to print advanced, powerful AI chips; Broadcom AVGO, an infrastructure backbone provider; and Intel Corporation INTC, a prominent AI-PC accelerator. As these stocks rally, their collective growth translates directly into rising values for semiconductor Exchange-Traded Funds (ETFs).

Therefore, for investors seeking exposure to the semiconductor industry’s ongoing rally, semiconductor ETFs are becoming an increasingly compelling option.
Before suggesting some top-ranked semiconductor ETFs for your portfolio, let us take a closer look at the growth catalysts behind the semiconductor industry’s expansion in 2025, as well as its future potential, so that investors can make informed decisions.

What Powered the 2025 Semiconductor Surge?

The semiconductor industry's exceptional performance, particularly in the United States in 2025, was driven by a combination of the following factors:

•    AI-Driven Demand: The need for chips to train and run massive AI models was the dominant force, particularly boosting the Logic and Memory segments. High-Bandwidth Memory, used almost exclusively for AI accelerators, became a key driver for the memory market. This led to record revenues and high profit margins for primary memory manufacturers like Micron Technology MU. 

•    Favorable Policy Adoption: Initiatives like the U.S. CHIPS and Science Act spurred investment in domestic manufacturing capacity, aiming to build more resilient supply chains. This act played a vital role in spurring private-sector investment, which amounted to nearly $500 billion in the U.S. semiconductor ecosystem as of July 2025 (according to a report published by SIA in July).

•    Technological Transition: The industry continued its relentless pace of innovation, laying the groundwork for next-generation advancements like Gate-All-Around (GAA) transistors and advanced packaging technologies.

What Lies Ahead?

As we approach 2026, the semiconductor industry’s momentum is expected not only to continue but also to accelerate. 

According to the World Semiconductor Trade Statistics (“WSTS”) autumn forecast, the global semiconductor market is expected to grow more than 25% in 2026, nearing the historic $1 trillion mark. With the United States expected to continue its position as a prominent forerunner in this market, we may expect it to deliver a robust performance next year as well. 

The growth drivers are expected to intensify, centered primarily on the massive deployment of AI data center infrastructure and the continued expansion of AI inference applications across various sectors. Other key factors include the rising penetration of semiconductor-intensive Electric Vehicles (EVs) and the ubiquitous digital transformation across industrial markets. Memory and Logic chips are also expected to remain the primary engines of this expansion.

Top-Ranked Semiconductor ETFs to Buy

For investors, the very factors that boosted leading chip stocks also strengthen the case for using semiconductor ETFs as a diversified way to gain exposure rather than timing individual picks. An ETF can provide exposure across GPU leaders, CPU and FPGA providers, analog power specialists, connectivity players, and foundry or equipment suppliers, reducing idiosyncratic risk from product delays, export rules, or pricing pressure at any one company. 

Thus, investors looking to capitalize on the semiconductor industry’s growth while managing risk may add the following ETFs to their portfolios:

iShares Semiconductor ETF SOXX

This fund, with net assets of $17.5 billion, provides exposure to 30 U.S. companies that design, manufacture and distribute semiconductors. Its top 10 holdings include prominent semiconductor stocks like AMD (8.36%), AVGO (8.30%), NVDA (6.55%), MU (6.38%), INTC (4.89%) and ASML (4.40%), which play a crucial role in the AI revolution. 

SOXX has soared 45.7% year to date. The fund charges 34 basis points (bps) as fees and sports a Zacks ETF Rank #1 (Strong buy).

Invesco PHLX Semiconductor ETF SOXQ 

This fund, with a market value worth $804.9 million, offers exposure to the 31 largest U.S.-listed securities of companies engaged in the semiconductor business.  Its top 10 holdings include AVGO (10.28%), NVDA (9.74%), AMD (8.29%), MU (6.32%), INTC (5.04%) and ASML (4.60%). 

SOXQ has surged 48.8% year to date. The fund charges 19 bps as fees and sports a Zacks ETF Rank #1.

VanEck Semiconductor ETF SMH

This fund, with net assets worth $37.67 billion, offers exposure to 26 companies involved in semiconductor production and equipment.  Its top 10 holdings include NVDA (16.99%), Taiwan Semiconductor (TSM) (9.41%), AVGO (8.81%), MU (6.44%), ASML (5.73%), AMD (5.63%) and INTC (5.60%).  

SMH has surged 52.4% year to date. The fund charges 35 bps as fees and holds a Zacks ETF Rank #1. 

First Trust Nasdaq Semiconductor ETF FTXL

This fund, with net assets worth $1.38 billion, offers exposure to 31 U.S. semiconductor companies. Its top 10 holdings include MU (9.10%), INTC (9.65%), AVGO (7.86%), NVDA (6.21%) and AMD (3.96%). 

FTXL has surged 53.5% year to date. The fund charges 60 bps as fees and holds a Zacks ETF Rank #2 (Buy).
 

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