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With NVIDIA at All Time High, Consider SMH ETF and SOXL ETF

@koolgal
🌟🌟🌟$NVIDIA Corp(NVDA)$ has hit at an All Time High of USD 823.94 on Friday with a market capitalisation of USD 2.06 Trillion. There has never been a stock such as Nvidia before that has gone up so much in such a short period of time . It rose from USD 1Trillion to USD 2 Trillion in just 180 trading days, the fastest such rise on record. Nvidia's one day increase in stock market value was the largest in Wall Street's history on February 23 with a record USD 277 billion in market value. It easily beats the record gain of USD 196 billion by Meta Platforms. However for a small investor like me, that is a lot of money to invest in just 1 stock. So I am looking at alternatives to invest in Nvidia. $VanEck Vectors Semiconductor ETF(SMH)$ tracks a market cap weighted index of 25 of the largest US listed semiconductor companies. SMH has 24.5% weightage on Nvidia, followed by $Taiwan Semiconductor Manufacturing(TSM)$ as the 2nd highest at 9.7%, Broadcom, $Advanced Micro Devices(AMD)$ , ASML, Lam Research, Applied Materials, Intel, Qualcomm and Analog Devices. The Top 10 weightage is 72%. Expense ratio is 0.50%. The current distribution yield is 0.50% paid annually. Performance wise SMH is up 4.6% this week and has jumped 30% year todate. In the past year SMH is up 82% largely due to Nvidia's stellar performance. $Semiconductor Bull 3X Shares(SOXL)$ SOXL is a leveraged ETF that offers 3x daily exposure to a modified market cap weighted index of 30 US listed semiconductor companies. It includes Nvidia as the Top holding at 9.7%, followed by AMD, Broadcom, Qualcomm, Intel, Lam Research, Marvell Technology, Applied Materials, ASML and TSMC. SOXL rebalances its 3x leverage daily. So it is not suitable for a long term hold as the targeted returns could be significantly different due to the compounding effects of this daily rebalancing. The expense ratio is 0.94%. SOXL was established on March 11 2010 and has Assets Under management of USD 8.75 billion. Performance wise SOXL is up 17% this week and has jumped 72% year todate. In the past year, SOXL has skyrocketed to 221%. I like SMH because it offers value for money and a diversified approach to investing in the best performing semiconductor stocks. In just 1 trade, not only do I get access to Nvidia but many excellent semiconductor stocks as well. With the combined strength of all the best semiconductor stocks perfectly packaged into 1 basket, I can have my cake and eat it too. SMH also minimises the impact should there be any negative news in any particular stock. Semiconductor stocks are like the picks and shovels of the current AI rally. For long term hold SMH is my Top Pick and to juice up my returns in the short term, SOXL is a powerful tool to use. SOXL is a much simpler way to capture the current upward momentum in Nvidia and other great semiconductor stocks than dealing with the complexities of Options Trading. SOXL also minimises my loss capped to my original investment (should the market slide) while in Options Trading it could be more. SMH and SOXL are the 2 ETFs I would buy to ride on the current superhot AI rally. They are just perfect for a small investor like me. @Daily_Discussion @TigerStars @MillionaireTiger @Tiger_comments @CaptainTiger @TigerClub @Tiger_SG
With NVIDIA at All Time High, Consider SMH ETF and SOXL ETF

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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