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Top Semiconductor ETFs That Investors May Buy in September

Over the past few months, the semiconductor industry has been experiencing an impressive rally, driven by surging capital expenditure in artificial intelligence (AI) infrastructure, persistent demand from hyperscalers and resilient corporate earnings. As broader markets evaluate seasonal shifts, September presents a strategic entry point for investors seeking to capture the next phase of this tech supercycle.

However, with heightened single-stock volatility, navigating this momentum requires a prudent risk-management strategy—making diversified exchange-traded funds (ETFs) offering exposure to semiconductor giants a far safer vehicle than concentrated bets on individual equity names.

But before we identify those ETFs, it is crucial to analyze the recent technological breakthroughs and corporate expansions that should help the industry’s momentum continue across the global chip ecosystem.

Recent Industry Developments Fueling Chip Momentum

The semiconductor industry has seen a flurry of transformative milestones that should reinforce long-term structural demand.

A major recent highlight in this regard is ASML Holdings' ASML strategic partnership expansions with industry giants like Samsung Electronics and Taiwan Semiconductor TSM, accelerating the deployment of High NA Extreme Ultraviolet (EUV) lithography and pioneering a transition to 12-inch photomask technology. As part of these agreements, Samsung Electronics aims to introduce the High NA EUV into high-volume manufacturing for advanced DRAM memory chips by 2028, while TSM intends to deploy this technology in high-volume manufacturing for advanced logic nodes starting in 2030.

This cutting-edge tool implementation should lower chipmaking costs and boost productivity for advanced AI nodes.

Simultaneously, ASML initiated construction on a massive second industrial complex in the Netherlands’ Brainport region—spanning 350,000 square meters—to dramatically expand manufacturing capacity, with the first phase targeted for completion by 2029.

In July, Micron Technology MU announced an expanded $250 billion U.S. capital investment plan through 2035 to build a massive domestic factory campus in Clay, NY, alongside expansions in Boise, ID, and Manassas, VA.

These manufacturing capacity expansion initiatives, along with increasing capex projections like the one done by TSM recently, provide concrete evidence that equipment suppliers and foundries are preparing for sustained, multi-year volume growth.

Empirical Outlook for Semiconductors

The medium-to-long-term outlook for semiconductors remains robust, overwhelmingly supported by AI data center requirements. According to the latest forecasts from Gartner, published last month, global semiconductor revenues are projected to surge 92% to reach $1.6 trillion, with the AI data center ecosystem expected to expand from 36.5% of total industry revenues to over 53% by 2030.

A primary growth engine within this trend is undoubtedly the exploding demand for memory silicon, particularly High-Bandwidth Memory (HBM) and advanced DRAM required for complex generative AI workloads. To this end, Gartner projects memory revenues alone to total $837.3 billion, accounting for nearly 54% of total global semiconductor revenues.

The Case for Semiconductor ETFs

While the fundamental backdrop as mentioned above is exceptionally bullish, individual semiconductor stocks remain exposed to single-company execution risks, earnings misses and localized supply chain disruptions.

Semiconductor ETFs resolve this issue by offering target-rich diversification across the entire value chain—spanning lithography equipment providers, fabless designers, mega-cap foundries, and specialized memory makers. Investing through a basket approach allows market participants to capture the structural tailwinds of the AI supercycle while smoothing out single-stock volatility.

Top Semiconductor ETFs to Buy This Month

Taking into consideration the discussion above, you may add the following semiconductor ETFs to your portfolio:

iShares Semiconductor ETF SOXX

This fund, with net assets worth $44.87 billion, offers exposure to 30 companies across the semiconductor value chain, including those driving innovation in AI and benefiting from capital investments in digital infrastructure. NVIDIA NVDA holds the first spot in this fund, with 9.33% weightage, while MU holds the second spot with an 8.99% weightage. TSM holds the seventh position in this fund, with a 4.76% weightage.

SOXX has rallied 76.7% year to date and charges 33 basis points (bps) in fees. It traded at a good volume of 6.43 million shares in the last trading session.

VanEck Semiconductor ETF SMH

This fund, with net assets worth $71.14 billion, offers exposure to 26 companies involved in semiconductor production and equipment. NVDA holds the first spot in this fund, with 22.63% weightage, while TSM holds the second spot with a 9.79% weightage. MU holds the third position in this fund, with a 5.63% weightage, whereas ASML holds the sixth spot with 5.11% weightage.

SMH has soared 59.5% year to date and charges 35 bps in fees. It traded at a good volume of 3.46 million shares in the last trading session.

SPDR S&P Semiconductor ETF XSD

This fund, with assets under management (AUM) worth $2.68 billion, offers exposure to 47 semiconductor equities. Impinj Inc. holds the first spot in this fund, with a 3.78% weightage, while MU holds the third spot with a 3.02% share.

XSD has surged 54.2% year to date and charges 35 bps in fees. It traded at a volume of 0.05 million shares in the last trading session.

Invesco PHLX Semiconductor ETF SOXQ

This fund, with a market value of $3.03 billion, offers exposure to the 31 largest U.S.-listed securities of companies engaged in the semiconductor business. NVDA holds the first spot in this fund, with a 13.97% weightage, while MU holds the third spot with an 8.98% weightage. ASML holds the fifth position with 4.77% weightage, while TSM holds the seventh spot with 4.57% weightage.

SOXQ has soared 68.5% year to date and charges 19 bps in fees. It traded at a volume of 0.89 million shares in the last trading session.

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