I was holding all three, I sold XSD and applied it to the other two. I sold NVDA close to $150/share with a nice profit, I wish I would've only trimmed it. Lesson learned. Thanks for the info Joe.
Thank you for the great analysis supported by a Thirsty Thursday pass. The AUM consideration was something I hadn't thought about until mentioned here. I appreciate your team's work to help us be informed consumers.
I'm buying and holding both SOXQ and SMH. I chose SOXQ over SOXX in spite of SOXQ's smaller AUM. Currently SOXQ has $375.01M AUM and it's growing the same way SOXX's AUM grew when it first started out. More importantly, between October 15, 2010 and June 21, 2021, SOXX tracked the PHLX Semiconductor Sector Index before it started tracking the NYSE Semiconductor Index on June 22, 2021. Most of SOXX's growth over the last 10 out of 13 years occurred while tracking the PHLX Semiconductor Sector Index, which is the same index tracked by SOXQ since its inception on June 9, 2021. SOXX has tracked the NYSE Semiconductor Index for only 3 years. The PHLX Semiconductor Sector Index has a proven track record. I can't say the same about the NYSE Semiconductor Index.
8:25 Actually the SOXX index as shown is right at 9.99% of ADRs. Consider that both TSMC and ASML are ADRs and there are three more further down the list. So the SOXX is capping ADRs which means TSMC and ASML - that will hurt returns as they can't let them run.
Interesting observation. These capping rules are in place for a reason, and it's pretty typical to cap any stock so that it doesn't get too overweight in most ETFs.
This is hilarious. Might have to steal that going forward. ;) Would add cheerleading to the list of beta behaviors. Pom-poms only look nice when the ladies are wavvin 'em. Joe P.
@Nanalyze When you made this video, you dropped SOXQ due to having a lower AUM of 163 mil. Three months later they are over 370 mil. Would you still discount them from the list? (NOTE: The other three have risen in AUM as well. SMH 18.4B - SOXX 12.9B - XSD 1.49B)
@@NanalyzeThanks for the reply, I think I failed in asking my question properly. In your opinion, should SOXQ still be excluded from the list even @ 379m AUM due to it being so much less than the others? I'm asking because I have been researching these very 4 ETFs when I ran across you video and had not taken into account the AUM but was favoring SOXQ due to the lower expense ratio and it being what SOXX used to be before it changed. THX in advance.
@@BioHorror Studies show lower expense ratios are the biggest predictor of outperformance so on that basis you would include it. We simply manage comments after videos go out. We cannot do ad-hoc added research on demand because it takes a massive amount of time - it's not fair to you if we answer questions without doing research so that's about all we can say. Where we do engage in research on demand is on our Discord server for paying subscribers ;)
@@Nanalyze OK, if you were looking for the best returns the past year, which I always do, SOXL simply outperformed SMH by 3X. I have no idea why investors don't want to use leveraged ETFs when they have high conviction or see that a certain sector is underperforming for the long is beyond me. Yes, you hear about time decay and all the other arguments, but none of them make any sense vs overall performance. The same can be said for the SQQQ or TECL for year to date performance. Being in these and simply not wasting your time with all of this analysis paralysis would have yielded not only the best overall returns, but the simplest from a portfolio management standpoint. I know you have a side business where you make money and you love to analyze companies etc, hence the name, but as a fiduciary it would behoove anyone to not simply dismiss these amazing investment vehicles. At the end of the day we want to make money from the markets and leveraged ETFs are a powerful tool for anyone to "leverage."
Im a retired tradesman new to this game. Is it safer or more lucrative to have a fund with more shares per company? SMH has millions of shares in different companies, while SOXQ has considerably less shares per company. Thanks. You give the clearest explanations Ive come across, bar none. Stay well
If you're referring to the fund's concentration, that become a matter of preference. If you're referring to the number of shares a fund owns of any given company then that's a function of concentration and the amount of assets the fund has - what we call assets under management or AUM. Thank you for the kind words!
Great question. We have two portfolios - 30 dividend growth stock and 36 disruptive tech stocks. Both are accessible to Nanalyze Premium annual subscribers. While we cover thematic ETFs, and like a number of them, we feel it's "cheating" to invest in these instead of looking for "the best" stocks because that's what our paying subscribers want us to do. We strongly encourage investors to consider ETFs when they invest as many lower diversification risk for a reasonable price.
We judge popularity by AUM and SOXL isn't at the top. It's also a directional ETF which increases risk and is not something we believe investors should get involved in.
Thanks for the video , one thing i dont get , USD ETF is charging fee of 0.95 rather than 0.35 - but the preformance is more than Double SMH ! isnt it worth it ?>
You're welcome! Just remember that past performance is not a predictor of future performance. In the long run, low fees are the most accurate predictor of outperformance. You can always choose the one that performed better and see what happens, but it's best to set rules and follow them. For us, a blanket rule for ETFs is to always prefer lower fees.
Long SMH and SOXX. Also semiconductors in the next decade or more. 25% of my portfolio. ASML is the only one I sold in January. Too much concentrated risk in the short term.
Thank you I’ll be watching! Also wondering if you have any thoughts on NGL? Government officials Mark Green and Paul Pelosi bought the stock and now that new 2024 energy and water development bill is pending which would grants them millions in debt reduction and forgiveness. Pretty interesting…
Please keep the comments on topic. To have any thoughts worth sharing about any stock, we spend at least half a day looking at it. It's why we only take requests from paying subscribers on our Discord server ;)
Great content once again! The way I see it, SOXX vs SMH split decision long term unless you think China - Taiwan relations will be an issue in the future. SMH has too high exposure to Taiwan Semiconductor for my taste as far as Geopolitics goes. I don't believe China will play the good boy for years once India starts to eat their cake of cheap manufacturing industry. Also personally liking the higher AMD exposure in SOXX. Imo, AMD has the highest upside potential among the large cap semi con. stocks along with Qualcomm as far as the stock price goes.
@goraygorgulu4773 Absolutely agree. I went with SOXX too. I simply just don't trust the Taiwan and China relationship. Also Navidia and TSMC are already established gaints in the tech field. SOXX puts a lot of its weight in tech companies that still have room for growth. Which means growth for my portfolio
That's an excellent question. It seems to depend on which providers are competing at any given time. Price wars happen. There seems to be no rhyme or reason from what I can tell. Sometimes you'll see new ETFs have initially lower fees to attract AUM (so actually increasing over time). They say you need $100 million AUM - at least - for an ETF to survive that charges average fees, though that may have changed because fees are getting so low now. Per Investopedia, the average expense ratio for an index ETF was 0.16% in 2022, according to industry research. $160,000 doesn't buy much at all. The average cost for an actively managed mutual fund was 0.66%. Joe P.
When I look at my old ETF screening spreadsheet from ca. 2018 I had Vanguard's VTI noted with 0.40% expense ratio but today in 2024 it's down to 0.03% ! So good old Vanguard definitely seems to be keeping up the pressure.
@@Martinit0 That is nuts! Good find, thank you for sharing. When a company is known for low cost then they'll keep moving in that direction apparently. Great to see!
Was it Buffett that said liquor women and leverage are the three ways to go broke? And that the first two have manageable risk? We strongly believe that investors should avoid leveraged ETFs.
Don’t like the look of SOXX. INTC being weighted higher than TSMC and ASML just feels so misaligned to the reality of the industry. A cap on individual company is sensible, but the overall cap on ADR is silly. SMH for me.
It was Buffett who said his preferred holding period is forever. We're also long NVDA, but some prefer the idea of investing in a basket of semiconductor stocks for the diversification effect. Congrats on finding financial freedom. :) -Wyatt C.
I bought Lam Research before it was Lam Research back around 1997-1999 (maybe it was Sony? I can't remember what it was😂)$2000 in a Roth. And forgot about it for over 20 years. Imagine my surprise when i looked at it for the first time about 6-8 months ago, and that $2000 was now over $70,000!🤣🤑 just call me, Warren. Warren Buffett🤪.. Now it's been hovering around $50,000 since it crashed in July-August.😟 But Thats Ok! I Shall Overcome!😬
@Nanalyze Yeah, I don't know. I see that it has a 'Moat', which is a Very Good Thing. So I will keep it for known future. .. I put a stop loss order originally at $40,000. And then when it broke through $70,000 and was approaching $80,000, I raised the stop/loss to $50,000. And as soon as I did that the damn broke and it came crashing down. When it dropped below $60,000 I canceled my stop/loss order completely.😂 I couldn't let my baby go!
@@bonanzatime Don't fall in love with a stock ;) Always best to set your sell rules before you enter a position so it helps remove emotion and puts some objectivity around the process.
You need to be subscribed to this channel before reading the below comments. Sorry, we don't make the rules.👮
ruclips.net/user/nanalyze
Such high quality analysis. Thank You. Happy Holidays 2024
Great to hear! Happy Holidays to you as well!
I was holding all three, I sold XSD and applied it to the other two. I sold NVDA close to $150/share with a nice profit, I wish I would've only trimmed it. Lesson learned. Thanks for the info Joe.
You're most welcome!
Thank you for the great analysis supported by a Thirsty Thursday pass. The AUM consideration was something I hadn't thought about until mentioned here. I appreciate your team's work to help us be informed consumers.
Thank you for the kind words! We always want to make sure we're helping people become better investors.
I'm buying and holding both SOXQ and SMH. I chose SOXQ over SOXX in spite of SOXQ's smaller AUM. Currently SOXQ has $375.01M AUM and it's growing the same way SOXX's AUM grew when it first started out. More importantly, between October 15, 2010 and June 21, 2021, SOXX tracked the PHLX Semiconductor Sector Index before it started tracking the NYSE Semiconductor Index on June 22, 2021. Most of SOXX's growth over the last 10 out of 13 years occurred while tracking the PHLX Semiconductor Sector Index, which is the same index tracked by SOXQ since its inception on June 9, 2021. SOXX has tracked the NYSE Semiconductor Index for only 3 years. The PHLX Semiconductor Sector Index has a proven track record. I can't say the same about the NYSE Semiconductor Index.
Thank you for the added info!
Liked and subscribed. Thanks for the video.
You're most welcome. Glad you enjoyed it!
Very informative and well put together video
Thank you for the great feedback!
8:25 Actually the SOXX index as shown is right at 9.99% of ADRs. Consider that both TSMC and ASML are ADRs and there are three more further down the list. So the SOXX is capping ADRs which means TSMC and ASML - that will hurt returns as they can't let them run.
Interesting observation. These capping rules are in place for a reason, and it's pretty typical to cap any stock so that it doesn't get too overweight in most ETFs.
I chose SMH as well
Always good to validate decision making process with others.
Brilliant video.
Cheers! :)
good work,, very good and thank you
You're most welcome, glad you enjoyed!
2:15 Actually, Beta is a measure of how much someone supports ESG initiatives and invests in hype stocks.
We are a high Alpha, low Beta community. 👏
This is hilarious. Might have to steal that going forward. ;) Would add cheerleading to the list of beta behaviors. Pom-poms only look nice when the ladies are wavvin 'em. Joe P.
@@Nanalyze it's all yours. 👍 (probably another t-shirt idea lol.)
I agree, leave the cheerleading to the ladies only. 😏
@businesswithredbeard5567 📣
Great analysis, thank you.
You're welcome, thank you for the feedback!
You should include iShares SEMI ETF in comparison
We did
Get a load of this guy
SOXQ ATH 🤑 glad I grabbed some
Be careful about FOMO. There is a lot of hype right now.
Your right got mine a while ago thankfully DCA into SCHD right now
@@crooked52h Sounds good!
@Nanalyze When you made this video, you dropped SOXQ due to having a lower AUM of 163 mil. Three months later they are over 370 mil. Would you still discount them from the list? (NOTE: The other three have risen in AUM as well. SMH 18.4B - SOXX 12.9B - XSD 1.49B)
Good question. It's probably good to have a cutoff somewhere to make things simply and avoid the paradox of choice.
@@NanalyzeThanks for the reply, I think I failed in asking my question properly. In your opinion, should SOXQ still be excluded from the list even @ 379m AUM due to it being so much less than the others? I'm asking because I have been researching these very 4 ETFs when I ran across you video and had not taken into account the AUM but was favoring SOXQ due to the lower expense ratio and it being what SOXX used to be before it changed. THX in advance.
@@BioHorror Studies show lower expense ratios are the biggest predictor of outperformance so on that basis you would include it. We simply manage comments after videos go out. We cannot do ad-hoc added research on demand because it takes a massive amount of time - it's not fair to you if we answer questions without doing research so that's about all we can say. Where we do engage in research on demand is on our Discord server for paying subscribers ;)
SOXL for me
The video talks about why we think directional ETFs should be avoided. ;)
@@Nanalyze OK, if you were looking for the best returns the past year, which I always do, SOXL simply outperformed SMH by 3X. I have no idea why investors don't want to use leveraged ETFs when they have high conviction or see that a certain sector is underperforming for the long is beyond me. Yes, you hear about time decay and all the other arguments, but none of them make any sense vs overall performance. The same can be said for the SQQQ or TECL for year to date performance. Being in these and simply not wasting your time with all of this analysis paralysis would have yielded not only the best overall returns, but the simplest from a portfolio management standpoint. I know you have a side business where you make money and you love to analyze companies etc, hence the name, but as a fiduciary it would behoove anyone to not simply dismiss these amazing investment vehicles. At the end of the day we want to make money from the markets and leveraged ETFs are a powerful tool for anyone to "leverage."
SMH is pretty good. :)
It's a cyclical industry, so it's all good until the music stops ;)
Im a retired tradesman new to this game. Is it safer or more lucrative to have a fund with more shares per company? SMH has millions of shares in different companies, while SOXQ has considerably less shares per company. Thanks. You give the clearest explanations Ive come across, bar none. Stay well
If you're referring to the fund's concentration, that become a matter of preference. If you're referring to the number of shares a fund owns of any given company then that's a function of concentration and the amount of assets the fund has - what we call assets under management or AUM. Thank you for the kind words!
thanks for the video, new to your channel. Was curious on the "we dont invest in ETFs" bullet and its rationale, can you please share why? thanks
Great question. We have two portfolios - 30 dividend growth stock and 36 disruptive tech stocks. Both are accessible to Nanalyze Premium annual subscribers. While we cover thematic ETFs, and like a number of them, we feel it's "cheating" to invest in these instead of looking for "the best" stocks because that's what our paying subscribers want us to do. We strongly encourage investors to consider ETFs when they invest as many lower diversification risk for a reasonable price.
You missed the most popular ETF: SOXL. Where are its assets?
We judge popularity by AUM and SOXL isn't at the top. It's also a directional ETF which increases risk and is not something we believe investors should get involved in.
How about SMCI stock? Is it in the same category?
We covered SMCI here: ruclips.net/video/aH_k_BlNPSM/видео.html
SOXQ up to $400 million AUM now so I think I will stick with that one.
Pretty low fees
Can you please do some research on USD Etf
We're happy to do research on demand for paying subscribers ;)
I'm all in on SOXQ.
"All in" isn't an asset class allocation strategy for the faint hearted
Thanks for the video , one thing i dont get , USD ETF is charging fee of 0.95 rather than 0.35 - but the preformance is more than Double SMH ! isnt it worth it ?>
You're most welcome! Not sure what time frame you're using but we are sure of one thing. Low fees are the most accurate predictor of outperformance.
thanks for the reply , USD 5yr 900%.....
SMH 5yr 350%.... so am i missing something by willing to pay 0.95 fee to the USD ??@@Nanalyze
Thanks for the reply - USD 5yr 900% , SMH 5yr 350% - what am i missing by willing to pay the 0.95 fee for the USD ?@@Nanalyze
You're welcome! Just remember that past performance is not a predictor of future performance. In the long run, low fees are the most accurate predictor of outperformance. You can always choose the one that performed better and see what happens, but it's best to set rules and follow them. For us, a blanket rule for ETFs is to always prefer lower fees.
ok thanks @@Nanalyze
What do u think about Proshares Ultra Semiconductor Etf's(USD)
If it wasn't covered in this video then we don't have thoughts on it ;)
SOXQ for me. I like the lower expense ratio than SOXX. I don’t care for the overweight of NVDA and TSM in SMH.
That's a very good reason to like SOXQ. Expense ratios are the most accurate predictor of performance.
Long SMH and SOXX. Also semiconductors in the next decade or more. 25% of my portfolio. ASML is the only one I sold in January. Too much concentrated risk in the short term.
Thank you for the comment! We have a piece coming out on ASML soon so stay tuned.
Thank you I’ll be watching! Also wondering if you have any thoughts on NGL? Government officials Mark Green and Paul Pelosi bought the stock and now that new 2024 energy and water development bill is pending which would grants them millions in debt reduction and forgiveness. Pretty interesting…
Please keep the comments on topic. To have any thoughts worth sharing about any stock, we spend at least half a day looking at it. It's why we only take requests from paying subscribers on our Discord server ;)
Great content once again! The way I see it, SOXX vs SMH split decision long term unless you think China - Taiwan relations will be an issue in the future. SMH has too high exposure to Taiwan Semiconductor for my taste as far as Geopolitics goes. I don't believe China will play the good boy for years once India starts to eat their cake of cheap manufacturing industry. Also personally liking the higher AMD exposure in SOXX. Imo, AMD has the highest upside potential among the large cap semi con. stocks along with Qualcomm as far as the stock price goes.
Thank you for the input!
@goraygorgulu4773 Absolutely agree.
I went with SOXX too. I simply just don't trust the Taiwan and China relationship.
Also Navidia and TSMC are already established gaints in the tech field. SOXX puts a lot of its weight in tech companies that still have room for growth. Which means growth for my portfolio
SMH!!!
Fair enough.
smh is up almost 50% since november
Short-term performance just means very little to be honest when comparing ETFs.
true. but your own analysis points to continued rise in valuation of SMH in the short and medium term.@@Nanalyze
Do new ETF's usually lower their expense ratio as AUM increases? What size do they need to achieve before this typically happens?
That's an excellent question. It seems to depend on which providers are competing at any given time. Price wars happen. There seems to be no rhyme or reason from what I can tell. Sometimes you'll see new ETFs have initially lower fees to attract AUM (so actually increasing over time). They say you need $100 million AUM - at least - for an ETF to survive that charges average fees, though that may have changed because fees are getting so low now. Per Investopedia, the average expense ratio for an index ETF was 0.16% in 2022, according to industry research. $160,000 doesn't buy much at all. The average cost for an actively managed mutual fund was 0.66%. Joe P.
When I look at my old ETF screening spreadsheet from ca. 2018 I had Vanguard's VTI noted with 0.40% expense ratio but today in 2024 it's down to 0.03% !
So good old Vanguard definitely seems to be keeping up the pressure.
@@Martinit0 That is nuts! Good find, thank you for sharing. When a company is known for low cost then they'll keep moving in that direction apparently. Great to see!
I like smh and XLK in a bull market.
Everything looks better in a bull ;)
If you believe semi longer-term... then buy leveraged semi etfs to super charge your returns.
Was it Buffett that said liquor women and leverage are the three ways to go broke? And that the first two have manageable risk? We strongly believe that investors should avoid leveraged ETFs.
@@Nanalyze Warren comes off as a nice grandpa... but there is no doubt, he's a hypocrite pit viper.
Don’t like the look of SOXX. INTC being weighted higher than TSMC and ASML just feels so misaligned to the reality of the industry. A cap on individual company is sensible, but the overall cap on ADR is silly. SMH for me.
Good point
Best semiconductor ETF? NVDA. never sell. I’m a 41 year old retired millionaire. 🙃
It was Buffett who said his preferred holding period is forever. We're also long NVDA, but some prefer the idea of investing in a basket of semiconductor stocks for the diversification effect. Congrats on finding financial freedom. :) -Wyatt C.
Smh just because of shake my head
Like the Indian head waggle?
@@NanalyzeLike the acronym…
Seems overweighted in just a small basket of sector stocks...... seems riskier than I appreciated before the video, SMH
Thank you for the comment! If people can make better investment decisions based on our videos and written content, we've done our jobs. :) Joe P.
BOTZ
Not a semi ETF but we wrote about them here: www.nanalyze.com/2020/08/which-robotics-etf-best/
@@Nanalyze thanks for the info. Greatly appreciated. 👍
@@poker2663 You are most welcome! Forgot to mention we actually have a video coming out soon on AI ETFs :)
I bought this one and some other Global etfs in tech sector like BUGZ and CLOUD but thus isn't Semiconductor even though some holdings overlap
I’m invested in Fselx . I know it’s not an etf but I’ve been exploring other options. Should I sell and switch over to smh?
It's important to make investment decisions based on your own convictions.
I bought Lam Research before it was Lam Research back around 1997-1999 (maybe it was Sony? I can't remember what it was😂)$2000 in a Roth. And forgot about it for over 20 years. Imagine my surprise when i looked at it for the first time about 6-8 months ago, and that $2000 was now over $70,000!🤣🤑 just call me, Warren. Warren Buffett🤪.. Now it's been hovering around $50,000 since it crashed in July-August.😟 But Thats Ok! I Shall Overcome!😬
Nice job, Warren! ;) That's the power of compounding at work. The best investors are those who forget they had an account.
@Nanalyze Thank You Thank You🙏.. I got lucky😉😆
@@bonanzatime Also very useful to see what that return looks like when benchmarked against the Nasdaq index
@Nanalyze Yeah, I don't know. I see that it has a 'Moat', which is a Very Good Thing. So I will keep it for known future. .. I put a stop loss order originally at $40,000. And then when it broke through $70,000 and was approaching $80,000, I raised the stop/loss to $50,000. And as soon as I did that the damn broke and it came crashing down. When it dropped below $60,000 I canceled my stop/loss order completely.😂 I couldn't let my baby go!
@@bonanzatime Don't fall in love with a stock ;) Always best to set your sell rules before you enter a position so it helps remove emotion and puts some objectivity around the process.