The Best ETFs to Invest In Right Now
Key Points
Exchange-traded funds (ETFs) make investing simple. With a few clicks of a button, you could quickly gain the opportunity to profit alongside a diversified collection of high-quality businesses.
In addition, select ETFs offer relatively easy ways to cash in on powerful economic trends, such as the artificial intelligence (AI) boom. Well-chosen funds could also provide you with bountiful and reliable passive income.
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Read on to see why AI chip suppliers and high-yield dividend payers are particularly attractive stocks to buy today.
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This ETF could help you profit from the AI revolution
The world runs on semiconductors. Laptops, smartphones, medical devices, modern cars and trucks, airplanes, satellites, and solar panels are just some of the products that require these essential components to function properly.
The microchips that underpin computer technology of all sorts are becoming even more valuable in the age of AI. The global semiconductor industry is poised to grow from $697 billion in 2025 to $1 trillion by 2030 and $2 trillion by 2040, according to Deloitte. Chip suppliers are set to see their sales and profits soar in the coming years.
The iShares Semiconductor ETF (NASDAQ: SOXX) offers you a convenient way to claim your share of this enormous and rapidly expanding market.
The fund is managed by BlackRock, one of the world’s largest investment companies, with assets under management of $12.5 trillion as of the end of the second quarter.
The ETF holds stakes in 30 stocks, all of which are key cogs in the global semiconductor supply chain. Leading chipmakers Nvidia, Advanced Micro Devices, Intel, Broadcom, and Taiwan Semiconductor Manufacturing stand among the fund’s largest holdings.
The ETF’s annual expense ratio is reasonable at 0.34%. That amounts to $3.40 for every $1,000 invested.
All told, the iShares Semiconductor ETF is a relatively effortless and low-cost way to position yourself to benefit from the AI-fueled chip boom.
This dividend ETF can help you build a lucrative passive income stream
Dividends are the sweet rewards of investing. A swell of cash payments pouring into your account year after year can drastically reduce your financial worries. Dividends can also help you pay for the things you enjoy.
Moreover, dividend stocks can add ballast to your diversified investment portfolio. Stocks that regularly pay out cash to their investors are generally less volatile than those that don’t. Dividend-payers also tend to outperform non-dividend-payers during bear markets. Better still, companies that can consistently grow their cash distributions often see their share prices rise in kind.
As its name suggests, the Vanguard High Dividend Yield ETF (NYSEMKT: VYM) offers convenient access to a broad collection of income-generating stocks with above-average payouts. The fund’s annualized dividend yield of roughly 2.6% is more than twice that of the S&P 500 Index, making it an excellent source of passive income.
With positions in roughly 580 stocks across a range of sectors, the ETF also provides investors with the wealth-protecting benefits of diversification. Top holdings, which include dividend stalwarts such as JPMorgan Chase, ExxonMobil, and Walmart, further help to mitigate the risks for shareholders.
Best of all, Vanguard charges ultralow fees, so nearly all the ETF’s gains will be passed on to investors. The Vanguard High Dividend Yield ETF has an expense ratio of 0.06%, which amounts to just $0.60 per $1,000 invested annually.
Should you invest $1,000 in Vanguard Whitehall Funds – Vanguard High Dividend Yield ETF right now?
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JPMorgan Chase is an advertising partner of Motley Fool Money. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, JPMorgan Chase, Nvidia, Taiwan Semiconductor Manufacturing, Vanguard Whitehall Funds-Vanguard High Dividend Yield ETF, Walmart, and iShares Trust-iShares Semiconductor ETF. The Motley Fool recommends Broadcom and recommends the following options: short August 2025 $24 calls on Intel and short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.