Our Disclosure

The content on this website includes links to our partners and we may receive compensation when you sign up, at no cost to you. This may impact which products or services we write about and where and how they appear on the site. It does not affect the objectivity of our evaluations or reviews. Read our disclosure.

5 Best Semiconductor ETFs To Consider in Canada for 2024

Updated:

Fact Checked

In recent years, semiconductors have been one of the hottest sectors to invest in. After all, they are one of the most important components of computer chips.

These chips provide the power behind all of our electronic devices today. They are also a major part of emerging technologies like AI.

Investing in semiconductors has been rewarding for investors. In this article, we will discuss the 5 best semiconductor ETFs in Canada for 2024.

Best Semiconductor ETFs in Canada 2024

1. Horizons Global Semiconductor Index ETF

Here are some key facts about this ETF:

  • Ticker Symbol: CHPS.TO
  • Inception Date: June 21, 2021
  • Assets Under Management: $39 million
  • Number of Holdings: 50
  • MER: 0.55%
  • Distribution Yield: 0.98%
  • 1-Year Return: -7.27%

Horizons Global Semiconductor Index ETF is Canada’s first and only ETF dedicated exclusively to semiconductor companies. It was founded in 2021 and has returned -0.89% to shareholders since its inception.

This ETF holds some of the biggest names in the semiconductor space. The top holdings are NVIDIA Corp (NVDA), Broadcom Inc (AVGO), and Taiwan Semiconductor Manufacturing Co Ltd ADR (TSM). It also holds stocks like AMD, ASML, and Texas Instruments in its top ten weighted holdings.

CHPS has a 65.67% allocation to American stocks. The second-highest weighted allocation is a 12.44% allocation to stocks from Taiwan.

2. iShares Semiconductor ETF

Here are some key facts about this ETF:

  • Ticker Symbol: NASDAQ: SOXX
  • Inception Date: June 10, 2001
  • Assets Under Management: $7.15 billion
  • Number of Holdings: 30
  • MER: 0.35%
  • Distribution Yield: 1.01%
  • 1-Year Return: -4.67%

The iShares Semiconductor ETF is the most well-known semiconductor ETF on the market. With more than $7.1 billion in assets, it is also one of the largest semiconductor ETFs along with the VanEck Semiconductor ETF (SMH).

This ETF only holds American companies that design, manufacture, and distribute semiconductors. The largest holdings in SOXX are NVIDIA Corp (NVDA), Broadcom Inc (AVGO), and Texas Instrument Inc (TXN).

3. VanEck Semiconductor ETF

Here are some key facts about this ETF:

  • Ticker Symbol: NASDAQ: SMH
  • Inception Date: December 20, 2011
  • Assets Under Management: $7.1 billion
  • Number of Holdings: 25
  • MER: 0.35%
  • Distribution Yield: 0.99%
  • 1-Year Return: -1.12%

For those wondering if there is a Vanguard semiconductor ETF, the VanEck Semiconductor ETF might be the closest thing. It is not officially a Vanguard ETF, but it is offered by prospectus only on the Vanguard website.

This is another massive semiconductor ETF with over $7 billion in net assets. It has an identical MER to SOXX  but has a slightly slimmer portfolio of holdings.

The largest weighted stocks in SMH are NVIDIA Corp (NVDA), Taiwan Semiconductor Manufacturing Co Ltd ADR (TSM), and ASML Holding Nv (ASML).

4. SPDR S&P Semiconductor ETF

 Here are some key facts about this ETF:

  • Ticker Symbol: NYSEARCA: XSD
  • Inception Date: January 31, 2006
  • Assets Under Management: $1.38 billion
  • Number of Holdings: 38
  • MER: 0.35%
  • Distribution Yield: 0.39%
  • 1-Year Return: 1.08%

The SPDR S&P Semiconductor ETF seeks to track the S&P Semiconductor Select Industry Index. This fund holds 38 US-listed semiconductor stocks with an identical MER to both SOXX and SMH.

XSD’s largest weighted holdings are NVIDIA Corp (NVDA), Rambus Inc (RMBS), and Micron Technology Inc (MU). The fund also has significant positions in well-known companies like Intel Corporation (INTC), AMD (AMD), and Broadcom Inc (AVGO).

5. ProShares Ultra Semiconductors

 Here are some key facts about this ETF:

  • Ticker Symbol: NYSEARCA: USD
  • Inception Date: January 30, 2007
  • Assets Under Management: $213 million
  • Number of Holdings: 33
  • MER: 0.97%
  • Distribution Yield: 0.17%
  • 1-Year Return: -27.21%

Now for the riskiest semiconductor ETF on our list: the ProShares Ultra Semiconductors ETF. This fund is a 2X leveraged ETF and uses financial derivatives to amplify gains and losses.

Leveraged ETFs are typically more actively managed which explains the higher expense ratio than the other ETFs.

This ETF holds 33 different semiconductor companies. The largest allocation is 29.63% to NVIDIA Corp (NVDA). The next two highest allocations are Broadcom Inc (AVGO) and Texas Instruments Inc (TXN).

How To Buy Semiconductor ETFs in Canada in 2024

All of these semiconductor ETFs are available at any brokerage in Canada. If you are looking to be savvy with your investments, you can buy these ETFs at a discount brokerage like Wealthsimple or Questrade to save on your trading fees.

Questrade

questrade logo

Trade stocks, ETFs, options, FX, bonds, CFDs, mutual funds, etc.

Get $50 trade credit with $1,000 funding

Low and competitive trading fees

No quarterly inactivity fees

Access to advanced tools and trading data

Top platform for advanced traders

Transfer fees waived

Wealthsimple Trade

wealthsimple logo

Trade stocks, ETFs, and options

Excellent trading platform for beginners

Deposit $150+ to get a $25 cash bonus

Transfer fees waived up to $150

Benefits and Downsides of Semiconductor ETFs

Semiconductors are a high-growth, cyclical industry. This means you usually have to keep up to date with the latest technologies from each company, some of which are difficult to understand.

It also means that when semiconductor stocks are seeing high sales, the stocks and ETFs can yield incredible gains. On the flip side, when the sector sees a decline in demand, investment losses can pile up.

One downside to investing in semiconductor ETFs is that most of them hold the same stocks. For example, all five of the ETFs listed in this article have NVIDIA as their highest allocation.

Semiconductor ETFs tend to have higher MERs and lower distribution yields. Tech stocks typically do not pay high dividends. As well, semiconductor ETFs often hold foreign companies, which can account for a higher MER.

Best Semiconductor Stocks

Are Semiconductor ETFs a Good Investment?

Cyclical sectors like semiconductors can be great investments when there is high demand, and losing investments when that demand falls.

The nice thing about a semiconductor ETF is that you get a broad sector performance, not just the ups and downs of individual stocks.

With technology advancing at a meteoric rate, semiconductors will be necessary components for the long-term future.

Even though consumer demand fluctuates, semiconductors are the building blocks for every type of technology in the world.

Methodology for Choosing Semiconductor ETFs

Since many of the holdings will be similar across semiconductor ETFs, how can you make sure you choose the best semiconductor ETF?

Looking for a more equally weighted allocation ensures that one stock does not have an overpowering impact on the performance of the fund.

It also pays to seek out lower MERs so that you can keep more of your gains over the long term.

FAQs

What is the most popular Semiconductor ETF?

The iShares Semiconductor ETF (SOXX) is the most popular and widely known semiconductor ETF. It is also the oldest ETF that is dedicated to semiconductors, having been established in 2001.

Does Vanguard have a Semiconductor ETF?

Vanguard does not have a semiconductor-specific ETF. On its website, it does promote the VanEck Semiconductor ETF (SMH) by prospectus only.

Related:

DIY Investing Course for Beginners: Grow Your Wealth Like a Pro

Want to become a do-it-yourself investor, save on investment fees, grow your wealth, and reach financial independence? Enroll in this online investing course to learn the exact steps you need to take to get started. Time to make your money work for you!

Investing Course for Beginners Featured Image

Step-by-step video instructions on how to trade stocks and ETFs on multiple brokerage platforms

30+ on-demand videos and presentations covering must-know investment concepts

Guides, workbooks, and reference material (20,000+ words)

Learn to assess your risk profile, develop an investment strategy, and build a diversified portfolio

Confidence to navigate the financial markets and stay on track under all financial conditions

24/7 access to all course material and future updates

Exclusive bonuses and access to live webinars

And lots more…

ENROLL NOW

Editorial Disclaimer: The investing information provided here is for informational purposes only and is not intended as individual investment advice or recommendation to invest in any specific security or investment product. Investors should always conduct their own independent research before making investment decisions or executing investment strategies. Savvy New Canadians does not offer advisory or brokerage services. Note that past investment performance does not guarantee future returns.

Top Investment Offers This month

Grow your stock portfolio and get $50 in FREE trading credit

Top discount trading platform in Canada for beginners and seasoned investors.

Get up to a $50 trading fee when you fund your account with $1000.

Zero trading commissions for ETF purchases (save up to $10 per transaction).

Transfer fees are waived up to $150 when you transfer assets from other banks.

Overall best crypto exchange in Canada with a $50 bonus

Get a $50 instant bonus when your initial deposit is at least $250.

Top Canadian crypto exchange with advanced trading tools & multiple fiats.

Buy and sell the most popular cryptocurrencies and earn interest on assets.

Pay some of the lowest trading fees in Canada.

Author

Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu, personal finance expert, author, and founder of Savvy New Canadians, has written about money matters for over 10 years. Enoch has an MSc (Econ) degree in Finance and Investment Management from the University of Aberdeen Business School and has completed the Canadian Securities Course. His expertise has been highlighted in major publications like Forbes, Globe and Mail, Business Insider, CBC News, Toronto Star, Financial Post, CTV News, TD Direct Investing, Canadian Securities Exchange, and many others. Enoch is passionate about helping others win with their finances and recently created a practical investing course for beginners. You can read his full author bio.

About Savvy New Canadians

Savvy New Canadians is one of Canada's top personal finance platforms. Millions of Canadians use our site each year to learn how to save for retirement, invest smartly, maximize rewards, and earn extra cash. We have been featured in prominent finance media, including Forbes, Globe and Mail, Business Insider, CBC, MSN, Wealthsimple, and TD Direct Investing. Learn more about Savvy New Canadians.

Free financial education

Expert advice

Free resources

Detailed guides

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

ULTIMATE DIY INVESTING COURSE
Want to become a do-it-yourself investor, grow your wealth, cut investment fees, and reach financial independence? Enroll in this top-rated online investing course to learn the exact steps you need to take to get started, and get a 50% discount today!*
*The 50% discount is a limited-time offer.
ULTIMATE DIY INVESTING COURSE

Want to become a DIY investor, grow your wealth, cut investment fees, and reach financial independence? Enroll in this top-rated online investing course to learn the exact steps you need to take and get a 50% discount today!*

*The 50% discount is a limited-time offer.
Success!
Thank you for joining the waitlist for our investing course! Check your email for the confirmation message.
Success!
Thank you for joining the waitlist for our investing course! Check your email for the confirmation message.