Broadcom (AVGO) continues to benefit from strong demand for AI chips and custom accelerators. Also, the company’s expanding customer base and leadership in custom AI chips position it well for long-term growth. Thus, to gain exposure to AVGO stock, investors may consider investing in these two ETFs: VanEck Fabless Semiconductor ETF (SMHX) and Strive U.S. Semiconductor ETF(SHOC).
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Let’s take a deeper look at these two ETFs.
VanEck Fabless Semiconductor ETF
The SMHX ETF tracks the performance of U.S.-listed fabless semiconductor companies, chip designers that outsource manufacturing. Importantly, AVGO stock accounts for 13.29% of SMHX’s total holdings.
Some of the top holdings in the SMHX ETF include Nvidia (NVDA), Advanced Micro Devices (AMD), and Marvell (MRVL). Overall, the ETF has $171.85 million in assets under management (AUM). Also, it has an expense ratio of 0.35%. The SMHX ETF has gained 26.8% in the past six months.
Turning to Wall Street, the ETF has a Strong Buy consensus rating based on 22 Buy ratings. At $48.64, the average SMHX ETF price target implies a 25.44% upside potential.
Strive U.S. Semiconductor ETF
The SHOC ETF offers concentrated exposure to U.S.-listed semiconductor companies. It tracks the Bloomberg U.S. Listed Semiconductors Select Total Return Index. Broadcom stock constitutes 17.05% of the ETF’s holdings.
Some of the top holdings in the SHOC ETF include Nvidia, Lam Research (LRCX), and Micron (MU). Overall, the ETF has $134.10 million in AUM and an expense ratio of 0.4%. Over the past six months, the SHOC ETF has gained 33.1%.
On TipRanks, SHOC has a Strong Buy consensus rating based on 29 Buys and two Holds assigned in the last three months. At $83.99, the average SHOC ETF price target implies 21.02% upside potential.
Concluding Thoughts
ETFs provide indirect exposure to Broadcom, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a liquid and transparent way to participate in the market. Investors seeking ETF recommendations might consider SHOC and SMHX, as these ETFs offer exposure to AVGO stock.