What Is One of the Best Semiconductor Stocks to Hold for the Next 10 Years? (Spoiler: It's an ETF With Average Annual Gains Exceeding 20%)
Key Points
The iShares Semiconductor ETF makes it easy to invest in lots of top-performing stocks.
This ETF offers instant diversification and has a strong track record.
- 10 stocks we like better than iShares Trust - iShares Semiconductor ETF ›
So you want to invest in semiconductor stocks? Who could blame you? Semiconductor chips are now powering or found in many things we use every day, from websites to smartphones, cars, and washing machines. (I own a "smart" washing machine that texts me when the cycle is finished.)
There are lots of semiconductor stocks, including notable names like Nvidia, Advanced Micro Devices, and Broadcom, and it takes a bit of work to study them all and decide which are the best investments.
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Alternatively, you might want to consider investing in a bunch of them via a single semiconductor-focused exchange-traded fund (ETF) -- a fund that trades like a stock and has holdings in multiple semiconductor-related companies. A great one to consider is the iShares Semiconductor ETF (NASDAQ: SOXX).
Image source: Getty Images.
Check out its performance:
| iShares Semiconductor ETF | 1 Year | 3 Years | 5 Years | 10 Years | 15 Years |
|---|---|---|---|---|---|
| Average annual gain | 31.7% | 31.5% | 20.1% | 26.4% | 21.5% |
Source: Morningstar.com, as of Nov. 24, 2025.
That's pretty amazing growth -- though that growth didn't come without some significant volatility as well. It's not surprising, though, since the ETF encompasses some of the fastest-growing stocks over the past decade or so.
What stocks will you own if you invest in the iShares Semiconductor ETF? This is an index fund that tracks the NYSE Semiconductor index, which is made up of U.S. semiconductor stocks. The ETF will usually have at least 80% of its money invested in that index's components and is allowed to invest up to 20% in futures, options, and swap contracts, cash, and cash equivalents.
The iShares Semiconductor ETF currently holds 31 stocks. Here are its top 10 holdings as well as the percentage of the overall fund as of Nov. 21, 2025:
- Advanced Micro Devices: 8.92%
- Broadcom: 8.14%
- Nvidia: 7.31%
- Micron Technology: 6.2%
- Qualcomm: 5.4%
- Lam Research: 5.07%
- Applied Materials: 4.96%
- Intel: 4.84%
- KLA Corp.: 4.48%
- ASML: 4.4%
Investing in the iShares Semiconductor ETF will instantly make you a part-owner of 31 promising tech stocks. Learn more about it to see if it's right for your long-term portfolio.
Should you invest $1,000 in iShares Trust - iShares Semiconductor ETF right now?
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Selena Maranjian has positions in ASML, Advanced Micro Devices, Broadcom, Micron Technology, Nvidia, Qualcomm, and iShares Trust-iShares Semiconductor ETF. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Applied Materials, Intel, Lam Research, Nvidia, Qualcomm, and iShares Trust-iShares Semiconductor ETF. The Motley Fool recommends Broadcom and recommends the following options: short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.
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