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Got $500? 2 Cryptocurrencies to Buy and Hold for Decades
Got $500? 2 Cryptocurrencies to Buy and Hold for Decades

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time2 days ago

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Got $500? 2 Cryptocurrencies to Buy and Hold for Decades

Key Points Spot crypto ETFs are one way for investors to get exposure to cryptocurrency at much lower prices. For just $500, it's possible to put together a blended portfolio of Bitcoin and Ethereum using only ETFs. Together, Bitcoin and Ethereum account for nearly 75% of the value of the crypto market and should be the two linchpins of any portfolio. 10 stocks we like better than iShares Bitcoin Trust › Invest in Gold American Hartford Gold: #1 Precious Metals Dealer in the Nation Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase Thor Metals Group: Best Overall Gold IRA It's understandable why many first-time crypto investors experience sticker shock when they start thinking of investing in the crypto market. Bitcoin (CRYPTO: BTC) is now trading for almost $120,000. And Ethereum (CRYPTO: ETH), the world's second-largest cryptocurrency, is now trading for more than $4,000. However, there's an easy, no-brainer way to gain exposure to both of these top cryptocurrencies for $500 and still have some money left over. Here's how to do it. Spot crypto ETFs If you choose to invest directly in the crypto market, $500 will only get you about .004 BTC or .1 ETH. There's nothing wrong, of course, with holding fractional amounts of these cryptocurrencies. But there's admittedly something very satisfying about owning full amounts of anything. And that includes crypto. Thus, one option might be to explore the new spot crypto exchange-traded funds (ETFs). There are now plenty of choices for both Bitcoin and Ethereum, but most investors tend to gravitate to the spot crypto ETFs from BlackRock (NYSE: BLK). For Bitcoin, that's the iShares Bitcoin Trust ETF (NASDAQ: IBIT), and for Ethereum, it's the iShares Ethereum Trust ETF (NASDAQ: ETHA). Both of these ETFs are designed to track the price performance of the underlying cryptocurrency. If Bitcoin goes up by 10%, the price of the ETF should go up 10% as well. Thus, owning these spot crypto ETFs is tantamount to owning the underlying cryptocurrency. Instead of buying them in the crypto market, you can gain access to them as easily as any other publicly traded ETF or stock. That makes them perfect for gaining access to Bitcoin and Ethereum at dramatically reduced prices. For example, the iShares Bitcoin Trust ETF is now trading for about $67, while the iShares Ethereum Trust ETF is now trading for $33. Of course, you don't have to choose the BlackRock ETFs. You could just as easily pair up Bitcoin and Ethereum ETFs from other asset managers. Putting $500 to work in crypto If you have $500, you can very easily create a blended Bitcoin-Ethereum portfolio. The easiest way to do this is by comparing the market caps of the top cryptocurrencies to the total value of the crypto market (which is currently about $4 trillion) and using that to come up with the optimal weighting for each. Bitcoin, with a market cap of about $2.4 trillion, accounts for almost 60% of the total market cap of crypto. Ethereum, with a market cap of $530 billion, accounts for roughly 13% of the market cap of crypto. Smaller cryptocurrencies make up the rest. For example, XRP (CRYPTO: XRP) chips in another 5%, while Solana (CRYPTO: SOL) adds another 2.5%. Thus, if you were looking for a diversified crypto portfolio, you would likely start with a mix of 60% Bitcoin, 13% Ethereum, 5% XRP, and 2.5% Solana. From there, you can either ratchet up or down your Bitcoin and Ethereum allocations, or add in several other cryptocurrencies. Since most investors are only focused on the top cryptocurrencies, one option would be a 70% Bitcoin, 30% Ethereum blend. It's relatively easy to achieve the desired blend with the ETFs. Of the $500, use $350 to buy about five shares of the iShares Bitcoin Trust and $140 to buy four shares of the iShares Ethereum Trust. Plus, there's $10 left over. You could easily put that to work by scooping up three XRP tokens (at a cost of roughly $10), or putting that money into dollar-pegged stablecoins while you wait for new investment opportunities. This might sound relatively simplistic, and to a certain degree, it is. But it's also the same strategy that diversified crypto ETFs are using today. For example, Trump Media & Technology Group (NASDAQ: DJT) plans to launch a new crypto ETF -- the Truth Social Crypto Blue Chip ETF -- that includes a mix of different cryptocurrencies. The desired mix is 70% Bitcoin, 15% Ethereum, 8% Solana, and 2% XRP. Buy and hold for decades The best part about a crypto ETF strategy is that you can buy and hold Bitcoin and Ethereum for decades. In contrast, if you start moving money into riskier, more speculative cryptocurrencies, you likely won't be holding them for long. For first-time crypto investors, I can't think of a better approach than to focus on just Bitcoin and Ethereum, and use low-cost ETFs to get exposure to them. Depending on your overall risk tolerance, your desired blend might change, but it's safe to say that Bitcoin should account for the lion's share of your total crypto exposure. Should you invest $1,000 in iShares Bitcoin Trust right now? Before you buy stock in iShares Bitcoin Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and iShares Bitcoin Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Dominic Basulto has positions in Bitcoin, Ethereum, Solana, and XRP. The Motley Fool has positions in and recommends Bitcoin, Ethereum, Solana, and XRP. The Motley Fool has a disclosure policy. Got $500? 2 Cryptocurrencies to Buy and Hold for Decades was originally published by The Motley Fool

3 ETFs That Could Generate $1 Million in Passive Income
3 ETFs That Could Generate $1 Million in Passive Income

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3 ETFs That Could Generate $1 Million in Passive Income

Key Points If you were earning an average dividend yield of, say, 3%, you'd need a huge portfolio to generate $1 million in passive income from dividends. A smaller portfolio can still produce meaningful amounts of dividend income. Dividend-focused ETFs make dividend investing easy. 10 stocks we like better than Schwab U.S. Dividend Equity ETF › Invest in Gold Thor Metals Group: Best Overall Gold IRA American Hartford Gold: #1 Precious Metals Dealer in the Nation Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase We're all going to need income in retirement, and that could come from shaving off some of our assets every year -- for instance, selling shares of stock from our portfolio. That can work, but if you live a long time, you do run the risk of running out of dollars before you run out of breath. So, consider generating passive income from some great exchange-traded funds (ETFs) -- funds that trade like stocks. For my own retirement, I plan to generate a significant amount of income passively via dividends from dividend-paying stocks. I own various dividend payers along with a dividend-focused ETF or two. Here are three for you to consider. Can you get $1 million in passive income? I have to say, collecting $1 million in passive income, presumably annually, is a tall order. It's not like you're going to be able to have a $2 million portfolio and a 50% dividend yield, generating $1 million. A more typical dividend yield for good blue chip companies is between 2% and 4%, with plenty of exceptions higher and lower. Some well-regarded companies do have yields of 5% or 6% or more, though. Verizon Communications (NYSE: VZ), for example, recently yielded 6.4%, and Realty Income (NYSE: O) yielded 5.7%. Meanwhile, the S&P 500 index, which holds 500 of America's biggest companies, sported an overall dividend yield of only 1.2% recently. (Many of those 500 companies don't pay a dividend at all.) So, here are some scenarios that show how much passive income you might generate with different kinds of portfolios: Portfolio Value Overall Average Dividend Yield Annual Income $500,000 3% $15,000 $1,000,000 3% $30,000 $2,000,000 3% $60,000 $33,333,333 3% $1,000,000 Source: Calculations by author. You'd need a portfolio worth $33,333,333, per the table above, if you want to collect $1 million annually via an overall average dividend yield of 3%. The table below doubles that to 6% and shows that you'd only need a $16,666,667 portfolio. Portfolio Value Overall Average Dividend Yield Annual Income $500,000 6% $30,000 $1,000,000 6% $60,000 $2,000,000 6% $120,000 $16,666,667 6% $1,000,000 Source: Calculations by author. Take some comfort in the other numbers, though. You might set up $30,000 or $60,000 or some other excellent amount of passive income with a more reasonable-sized portfolio. 3 ETFs that could generate lots of passive income for you You might now be wondering which ETFs to consider for that wonderful passive income. Here are three solid contenders: Exchange-Traded Fund (ETF) Recent Yield 5-Year Avg. Annual Return 10-Year Avg. Annual Return Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) 3.9% 11.49% 11.24% Fidelity High Dividend ETF (NYSEMKT: FDVV) 3.1% 17.56% N/A Vanguard High Dividend Yield ETF (NYSEMKT: VYM) 2.6% 13.79% 10.51% Source: Yahoo! Finance and as of August 6, 2025. Each offers a solid dividend yield along with impressive average annual gains. Such returns are not guaranteed, of course, and some ETFs will post poor or even negative results now and then. But overall, these have done well and are poised to continue. If you want fatter yields, you might consider the iShares Preferred & Income Securities ETF (NASDAQ: PFF), which recently sported a yield of 6.5%. Its average annual gains are far lower, though, as it's a fund specializing in preferred stocks, which tend to be generous dividend payers with little stock-price appreciation. Another option to consider is a covered-call ETF such as the JPMorgan Equity Premium Income ETF (NYSEMKT: JEPI) or the JPMorgan Equity Premium Income ETF (NASDAQ: JEPQ), recently yielding 8.4% and 11.2%, respectively. But read up on these kinds of ETFs first to make sure you understand what you're investing in and how they work. However you go about it, give serious consideration to loading up much of your long-term portfolio with dividend payers, as they can generate a lot of passive income for you. Should you buy stock in Schwab U.S. Dividend Equity ETF right now? Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Schwab U.S. Dividend Equity ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $663,630!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,695!* Now, it's worth noting Stock Advisor's total average return is 1,071% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Selena Maranjian has positions in JPMorgan Nasdaq Equity Premium Income ETF, Realty Income, Schwab U.S. Dividend Equity ETF, and Verizon Communications. The Motley Fool has positions in and recommends Realty Income and Vanguard Whitehall Funds-Vanguard High Dividend Yield ETF. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy. 3 ETFs That Could Generate $1 Million in Passive Income was originally published by The Motley Fool

Fidelity: In Managing Portfolios, Advisors Are 'Leaning into Growth, But Keeping a Hand on the Brake'
Fidelity: In Managing Portfolios, Advisors Are 'Leaning into Growth, But Keeping a Hand on the Brake'

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Fidelity: In Managing Portfolios, Advisors Are 'Leaning into Growth, But Keeping a Hand on the Brake'

You can find original article here Wealthmanagement. Subscribe to our free daily Wealthmanagement newsletter. In building portfolios for clients, financial advisors are leaning into large cap group domestic equities, developed markets for international equities, high-yield bonds in fixed-income allocations and liquid alternatives as a volatility buffer while increasingly using ETFs as a wrapper for those strategies. Invest in Gold American Hartford Gold: #1 Precious Metals Dealer in the Nation Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase Thor Metals Group: Best Overall Gold IRA That's according to the latest analysis from Fidelity's portfolio construction team based on analysis of 3,198 advisor-managed portfolios from April to June 2025. 'For the near-term, fundamentals look strong, such as corporate earnings. The only uncertainties are policy uncertainty as well as the consistent risk of inflation,' said Mayank Goradia, head of portfolio construction at Fidelity Investments. 'It reinforces the need for diversification and discipline and regularly reviewing and understanding what's inside portfolios. ... Advisors are cautiously optimistic. They are leaning into growth but keeping one hand on the brake.' Not surprisingly, ETF usage continues to grow. Overall, Fidelity found 64% of incoming portfolios had some allocation to ETFs, and, on average, nearly 50% of advisor portfolios are allocated to ETFs. Advisors are most heavily relying on ETFs for U.S. equity exposure—with 72% using ETFs for those allocations, nearly equal to 77% that use mutual funds in that asset class. For international equities, however, just 42% of advisor portfolios use ETFs vs. 78% that use mutual funds. In addition, use of active ETFs continues to grow, with 36% of advisors using active ETFs vs. 13% in 2022. The average allocation to active ETFs was around 22%. The majority of flows into active ETFs were in the domestic large-cap space. 'Flows are going to follow the maturity of the products—the track record and the pedigree,' Goradia said. Active ETFs in the domestic large cap space have been around longer than in other categories and have more of a track record. Fixed-income strategies were next in the active ETF development pipeline, and flows are picking up there now as well, Goradia said. Fidelity found that overall average advisor portfolios are 70% allocated to equities. Of that, 79% is allocated to U.S. stocks vs. 21% for international vs. a mix of 73% to 27% in 2021. Within U.S. equity, the average portfolio includes a 65% allocation to large-caps, 22% to mid-caps and 13% to small caps. By style, growth equities came in at 28%, value at 29% and 43% to core. For non-U.S. equities, advisors had 84% of their allocations in developed markets and 16% in emerging markets. Non-U.S. equities have ridden some tailwinds in 2025, including a weakening dollar, stable fundamentals and strong earnings, and a tilt toward monetary easing policies outside the United States. Tariffs, however, represent a headwind to more trade-reliant economies, particularly in emerging markets. Fixed-income allocations stood at 25% of advisor portfolios, according to Fidelity. Of that, 79% is allocated to investment-grade bonds and 21% to high-yield bonds. 'Bonds are back, not just as a stabilizer but as an income-producing engine,' Goradia said. Allocations are also going for shorter duration of late. 'It has to do with talks about when the Fed starts cutting rates. Advisors are underweight fixed-income, but have enough allocation to investment grade and are supplementing it with high-yield and that's cutting into the average duration.' In addition, with higher correlations between bonds and equities, advisors have sought diversification by looking at liquid alternatives. Overall, Fidelity found that 11% of incoming portfolios had an allocation to liquid alts, with the most popular categories including hedge equity and market-neutral products. 'In a world where stocks and bonds move together, alts are the new shock absorbers,' Goradia said. 'We've never seen this much importance given to diversification. Diversification isn't just about spreading risk, but about building resilience and avoiding uncertainty.' In all, Fidelity said that of advisors using its portfolio construction services, about two-thirds come back on a periodic cadence, engaging between two and 10 times per year. 'They come back ever three months or six months to make sure they still feel good about their exposures.' Sign in to access your portfolio

Gold prices risk 'blow-off top' like 2011
Gold prices risk 'blow-off top' like 2011

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Gold prices risk 'blow-off top' like 2011

Gold prices risk 'blow-off top' like 2011 originally appeared on TheStreet. Carley Garner is a long-time futures trader who has seen a thing or two over a career that has lasted over 20 years, including gold market rallies and sell-offs. The massive rally in gold stocks this year to north of $3,357 per ounce has caught her attention, and not in a good way. Invest in Gold Thor Metals Group: Best Overall Gold IRA Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase American Hartford Gold: #1 Precious Metals Dealer in the Nation Gold prices are up over 28% year-to-date in 2025, and the size and speed of the move (and the reasons behind it) remind her of a similar rally 14 years ago in 2011. Back then, the outcome for gold bugs wasn't fun. "The 2011 top was met with a 45% haircut that took nearly a decade to recover," according to Garner. Why gold rallied so much this year Gold has enjoyed a perfect storm this year as macro crosscurrents hamstring the Fed's monetary policy, GDP slips, and the U.S. debt outlook worsens. Unemployment has risen to 4.2% from 3.4% in 2023, CPI inflation of 2.7% is stubbornly above the Fed's 2% inflation target, the World Bank says GDP is expected to fall to 1.4% from 2.8% last year, and debt experts say the One Big, Beautiful Bill Act passed this year will add $3.4 trillion to the U.S. debt by risks have hammered the US Dollar, causing the Dollar Index to tumble 10% in 2025. Since gold is priced in USD, the Dollar's struggles have made it more attractive to overseas buyers eager to diversify their holdings away from U.S. Treasuries in protest of President Donald Trump's tariff policy. The significant uncertainty has also made antsy investors far more interested in gold than Treasuries as a safe haven. "Safe haven dollars can purchase gold, an asset that doesn't produce income, at an all-time high without a risk parachute, or they can buy Treasuries at multi-decade lows with a yield of 4% to 5% to cushion downside price risk," said Garner in a TheStreet Pro post. "Ironically, the masses select the former and pass on the latter." Many are indeed giving up on Treasuries' relatively juicy yields, fearing the worst. That may not be the best move, though, for newer gold bugs, given that gold has already rocketed to all-time highs this summer. Gold's rally echoes the past Troubling times always increase interest in gold, and this isn't the first time that gold has put on a show. In 2011, gold similarly rallied sharply to all-time highs amid uncertainty around major banks and the economy, and aftershocks following the Great Recession, which was still fresh on investors' the S&P cut the U.S. debt rating for the first time in history in August 2011 because of the growing deficit, prompting a massive 5.5% drop in the S&P 500 on Aug. 8. The situation was so bad that Warren Buffett famously back-stopped Bank of America on Aug. 25, providing a cash influx in exchange for preferred stocks and warrants that eventually made Buffett's Berkshire Hathaway a mint when risk assets found their footing and gold lost its luster. "Although gold is known as a safe-haven asset, it has a history of stunning corrections," reminded Garner. "For instance, the 2011 top was met with a 45% haircut that took nearly a decade to recover." Is gold still worth buying now? Like most investments, momentum can drive assets higher and lower than logic may dictate, making betting against it a risky endeavor. Still, most money is made or lost by acting ahead of the turning points that mark tops and bottoms. Given that gold has already made a major move higher, investors are wise to consider whether we're closer to a top like 2011 than a bottom like a few years ago. More Experts: Stocks & Markets Podcast: Sectors to Avoid With Jay Woods Trader makes bold call with Boeing stock after defense workers strike Veteran fund manager sends urgent 9-word message on stocks "Gold is an asset that should only be bought when nobody wants it. If everyone is buying it, it's probably too late for anyone with a time horizon of less than a decade or longer," said Garner. There's certainly an argument that gold bullishness is widespread, with many talking positively about it as a hedge worth owning. "If you are looking for bearish analyst calls or news, you won't find it," said Garner. "But don't let this detract you from being skeptical." Gold was panned as a "dead dog acting as a drag to portfolios" three years ago, says Garner. Today, she says, "it is considered a must-hold in those same portfolios." In other words, contrarian thinking, akin to buying when everyone is selling and selling when everyone is buying, may make more sense today regarding gold than three years ago. "Just as conventional thinking was misguided then, it might be wrong today," wrote prices risk 'blow-off top' like 2011 first appeared on TheStreet on Aug 16, 2025 This story was originally reported by TheStreet on Aug 16, 2025, where it first appeared.

Best semiconductor ETFs in 2025: Top chip companies for your portfolio
Best semiconductor ETFs in 2025: Top chip companies for your portfolio

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time3 days ago

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Best semiconductor ETFs in 2025: Top chip companies for your portfolio

If you're looking to invest in the ongoing rise of semiconductors, then buying a semiconductor exchange-traded fund (ETF) is an easy way to get started without the work of analyzing individual companies. With a semiconductor ETF, you can buy a cross-section of the industry and not have to pick the winners, making it more accessible for non-experts. Plus, an ETF offers the benefits of diversification, reducing your risk compared to investing in individual stocks. Invest in Gold Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase Thor Metals Group: Best Overall Gold IRA American Hartford Gold: #1 Precious Metals Dealer in the Nation The semiconductor industry offers huge potential for growth. In particular, the rise of artificial intelligence (AI) is driving huge demand for chips, and semiconductor companies such as Nvidia and Broadcom have surged to become trillion-dollar companies. As AI continues to infiltrate more and more into the marketplace, semiconductor firms are selling the products that make it all possible. Of course, there's a huge range of other daily products that have chips inside, too. So a semiconductor ETF can be a great way to invest in what's likely to be one of the most dynamic sectors of the economy for years, if not decades. And you can buy one of these funds inside a retirement account such as a tax-free Roth IRA and take extra advantage of its benefits. Here are some of the best semiconductor ETFs, their performance and their cost. Overview of the best semiconductor ETFs Fund (ticker) 3-year performance (annualized) 5-year performance (annualized) VanEck Semiconductor ETF (SMH) 35.9% 29.6% Invesco PHLX Semiconductor ETF (SOXQ) 25.4% N/A iShares Semiconductor ETF (SOXX) 22.9% 21.6% First Trust Nasdaq Semiconductor ETF (FTXL) 18.4% 17.4% Invesco Semiconductors ETF (PSI) 17.9% 18.5% SPDR S&P Semiconductor ETF (XSD) 14.7% 18.2% 1. VanEck Semiconductor ETF (SMH) This fund tracks the MVIS US Listed Semiconductor 25 Index, which has heavy concentrations in the largest semiconductor firms. Its largest positions include Nvidia, Taiwan Semiconductor Manufacturing and Broadcom, and it charges an expense ratio that's in the middle of the pack. 5-year returns (annualized): 29.6 percent Expense ratio: 0.35 percent 2. Invesco PHLX Semiconductor ETF (SOXQ) This fund tracks the PHLX Semiconductor Sector Index, which measures the stock performance of the 30 largest semiconductor firms traded on U.S. exchanges. The fund has a strong three-year performance record, but has not existed long enough to have a five-year record. Key positions include Nvidia, Taiwan Semiconductor Manufacturing and Broadcom. The expense ratio here is notably lower than other top semiconductor funds. 5-year returns (annualized): N/A Expense ratio: 0.19 percent 3. iShares Semiconductor ETF (SOXX) This fund tracks the NYSE Semiconductor Index, which measures the performance of the stocks of the 30 largest semi stocks traded on the U.S. exchanges. Key positions include Advanced Micro Devices, Nvidia and Taiwan Semiconductor Manufacturing. 5-year returns (annualized): 21.6 percent Expense ratio: 0.34 percent 4. First Trust Nasdaq Semiconductor ETF (FTXL) This fund tracks the Nasdaq US Smart Semiconductor Index, which ranks companies based on return on assets, gross income and price momentum. This fund's largest positions include Broadcom, Nvidia and Micron Technology. 5-year returns (annualized): 17.4 percent Expense ratio: 0.60 percent 5. Invesco Semiconductors ETF (PSI) This fund tracks the Dynamic Semiconductor Intellidex Index, which evaluates companies based on price momentum, earnings momentum, value, management actions and quality. The fund includes 30 stocks, and its largest positions include Nvidia, Broadcom and Lam Research. 5-year returns (annualized): 18.5 percent Expense ratio: 0.56 percent 6. SPDR S&P Semiconductor ETF (XSD) This fund tracks the S&P Semiconductor Select Industry Index, and its portfolio includes 40 stocks, including its top positions of Astera Labs, Credo Technology and Advanced Micro Devices. 5-year returns (annualized): 18.2 percent Expense ratio: 0.35 percent What to look for in an ETF When you're investing in ETFs, you'll want to look at the ETF's features to ensure that you're buying what you want to buy. Here are three key things to analyze. The sub-sector: A sector ETF may have its investments focused in a specific sector, and those sub-sectors may respond differently to developments in the industry. Some industries may have a variety of sub-sectors with funds dedicated to the sub-sectors. The investment track record: How has the fund performed over time? Look at the annualized performance of the funds to help gauge how they might do in the future. The longer the performance period, the better view you'll have of how the ETF may perform. Any fund can be hot in a given year, but strong returns over five or 10 years may indicate that the fund can outperform in the future, too. The expense ratio: The fund's expense ratio tells you how much you'll pay in annual fees for owning a fund, as a percent of your total investment in it. Larger funds tend to charge lower expense ratios because they can spread the costs of the fund across more assets. Then they may try to lock in their advantage by keeping their expense ratio toward the lower end of the competition. The cheapest funds may often be the largest funds, and a low expense ratio is an important measure of what makes one of the best ETFs. The best brokers for ETFs can help you find attractive funds with strong long-term returns. Bottom line If you're looking for concentrated exposure to the semiconductor industry — one of the market's best sectors for years — then a semiconductor ETF is a great way to get it. With an ETF, you'll get some diversification and reduced risk by buying a wide swath of semiconductor companies — without having to do the heavy research and analysis to buy individual stocks. Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.

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