The Hidden Gem ETF Crushing the Market

March 31, 2025

1 High-Tech ETF Down 25% You Can Buy Right Now

Technology stocks have been a wild ride in recent months, with some of the biggest names in the industry experiencing significant declines. One high-tech ETF that's been hit particularly hard is the VanEck Vectors Semiconductor ETF (SMH).

As of the market close on March 30, SMH was down a whopping 25% from its 52-week high. This is a significant drop, especially considering that the broader market has been relatively flat over the same period.

So, why is SMH down so much? There are a few factors at play. First and foremost, the semiconductor industry is highly cyclical, meaning that it's sensitive to changes in the global economy. When the economy is slowing down, companies tend to reduce their spending on new technology, which can hurt demand for semiconductors.

Another factor is the ongoing trade tensions between the US and China. The semiconductor industry is heavily reliant on China, which is the world's largest consumer of semiconductors. As tensions between the two countries continue to escalate, investors are getting nervous about the potential impact on the industry.

Despite these challenges, there are still reasons to be optimistic about the semiconductor industry. Demand for semiconductors is expected to continue growing in the long term, driven by the increasing adoption of technologies like artificial intelligence, 5G, and the Internet of Things.

If you're looking to get in on the action, now might be a good time to consider buying SMH. The ETF has a diversified portfolio of 25 semiconductor stocks, including industry giants like Intel (INTC) and Texas Instruments (TXN). With a 25% drop, the ETF is now trading at a relatively low price, making it a more attractive option for investors looking to get in on the ground floor.

Of course, as with any investment, there are risks involved. The semiconductor industry is highly competitive, and companies are constantly innovating and improving their products. This can make it difficult to predict which companies will come out on top in the long run.

Overall, while SMH has had a tough few months, it's still a high-tech ETF that's worth considering for investors looking to get in on the action. Just be sure to do your research and consider your own risk tolerance before making a decision.