The best tech etf to buy with $ 2,000 right now

On By Littum

$ 2,000 may not sound much to invest. But even in a stock exchange stock (ETF), $ 2,000 could grow by 5x, 10x or even more over time. It can make a difference in your financial future and a great place to place this money is in tech shares.

Technical equities have dominated the market’s narrative in the last few years and fuel for the bull market and AI boom. Investors have a lot of options when it comes to Tech ETFs. The most popular is generally considered Invesco qqq etf (NASDAQ: QQQ). This ETF spores Nasdaq-100and has historically better than S&P 500.

However, there is another ETF that I think is a better purchase for 2025. I am talking about Vaneck Semiconductor Etf (NASDAQ: SMH).

The words ETF in a hole in a dollar note.
Image source: Getty Images.

Vaneck Semiconductor ETF is the largest semiconductor ETF in the United States with $ 23 billion in assets under management. That makes it bigger than Ishares semiconductor ETF (Nasdaq: Soxx)that spores Phlx Semiconductor IndexAs some investors look like the best way to track the semiconductor industry.

Vaneck Semiconductor ETF also has historically better than Soxx. As the diagram below shows, it has not only beaten SOXX but also QQQ and S&P 500.

SMH chart
Smh Data of Ycharts.

As you can see, Vaneck Semiconductor ETF has sprung almost 10 times in the last decade. For several years it traded in line with SOXX, but recently it is separated as its holdings are different from its rival ETF. It is more strongly weighted toward NvidiaFor example.

Vaneck Semiconductor Etfs Top Three Holdings are Nvidia, Taiwan Semiconductor Manufacturing Companyand BroadcomMore than 40% of ETF combined.

Nvidia needs a little introduction at this time. More than any other business deserves Nvidia credit to trigger the generative AI boom. While Openai’s launch of Chatgpt was a waters, the components that made this product possible to belong to Nvidia. These days, Nvidia is still the clear leader in the industry with an estimated market share of 95% in data center GPUs. Nvidia reported a 94% turnover growth in its third -quarter report, which shows that the demand for its product continues to hover. It makes up 20% of Vaneck Semiconductor ETF.

TSMC dominates the industry of contract chip. It makes more than half of third -party chips in the world and approx. 90% of advanced chips. By taking advantage of AI Boom and the wider improvement in the semiconductor industry, TSMC has also delivered impressive results. Revenue has increased by 37% to $ 26.9 billion, and earnings per year. Stock has sprung 56% to $ 2.24. It represents 13% of Vaneck Semiconductor Etf.