Highlights;
- ETFs offer a simple way to diversify investments and profit from various trends like AI.
- The iShares Semiconductor ETF (SOXX) targets the growing chip market, holding stocks like Nvidia and AMD, with a 0.34% expense ratio.
- The Vanguard High Dividend Yield ETF (VYM) provides a 2.6% dividend yield, investing in 580+ stocks, including JPMorgan and Exxon, with a 0.06% expense ratio.
Protect and grow your wealth with these top-performing funds.
Investing is made simple with exchange-traded funds (ETFs). With just a few clicks, you can gain access to a diversified portfolio of high-quality businesses, offering the opportunity to profit from promising investments.
Certain ETFs provide straightforward ways to capitalize on powerful economic trends, such as the rapid growth of artificial intelligence (AI). Additionally, well-selected funds can generate substantial and reliable passive income, enhancing your financial security.
Continue reading to discover why AI-related semiconductor suppliers and high-yield dividend stocks are particularly appealing investments in today’s market.
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Profit from the AI Revolution with This ETF
Semiconductors are the backbone of modern technology, essential for laptops, smartphones, medical devices, vehicles, aircraft, satellites, and solar panels. As AI technology advances, the demand for these chips is skyrocketing.
The global semiconductor industry, valued at $697 billion in 2025, is projected to reach $1 trillion by 2030 and $2 trillion by 2040, according to Deloitte. This growth presents a lucrative opportunity for chip suppliers to increase their sales and profits significantly.
The iShares Semiconductor ETF (SOXX) offers a straightforward way to invest in this expanding market. Managed by BlackRock, one of the world’s largest investment companies with $12.5 trillion in assets under management as of Q2, this ETF holds stakes in 30 key companies in the semiconductor supply chain.
Notable holdings include leading chipmakers such as Nvidia, Advanced Micro Devices (AMD), Intel, Broadcom, and Taiwan Semiconductor Manufacturing (TSM). With an annual expense ratio of 0.34%, this ETF provides a cost-effective and hassle-free way to tap into the AI-driven chip boom.
Build a Lucrative Passive Income Stream with This Dividend ETF
Dividends offer a rewarding stream of income, providing financial stability and the means to enjoy the fruits of your investments. They can also enhance your portfolio’s resilience by reducing volatility and outperforming during market downturns.
The Vanguard High Dividend Yield ETF (VYM) is designed for income-focused investors, offering access to over 580 high-dividend stocks across various sectors. With a 2.6% annualized dividend yield—more than double the S&P 500—it’s an excellent choice for generating passive income.
This ETF diversifies your investment, with top holdings including reliable dividend payers like JPMorgan Chase, ExxonMobil, and Walmart. Vanguard’s low expense ratio of 0.06% ensures that investors retain most of the fund’s returns, making it a cost-effective option for building long-term wealth.
JPMorgan Chase is an advertising partner of The Motley Fool. Joe Tenebruso has no position in any of the mentioned stocks. The Motley Fool holds positions in and recommends Advanced Micro Devices, Intel, JPMorgan Chase, Nvidia, Taiwan Semiconductor Manufacturing, Vanguard High Dividend Yield ETF, Walmart, and iShares Semiconductor ETF. Additionally, The Motley Fool recommends Broadcom and suggests options involving Intel.
