Contrary to what many believe, the S&P 500 index can be beaten with minimal added risk.
The fact that many investors underperform the S&P 500 is often a poorly understood part of investing. Although stocks like Nvidia and Tesla have experienced massive market-beating returns, numerous others underperform the index, and some lose value. Thus, investors who can meet that index benchmark are doing well.
However, some exchange-traded funds (ETFs) have beaten the S&P. Moreover, they do not have to buy stocks on a long-shot hope to find the next Nvidia. One of these ETFs focuses on semiconductor stocks, and considering its investment mix, investors have a tremendous incentive to outsource the heavy lifting of investing to these funds’ managers.
What is this fund?
This market-beating fund is the VanEck Semiconductor ETF (SMH 2.56%). It contains 26 companies that together cover all aspects…
