VanEck Semiconductor ETF

SMH

Market cap $45.4B

Fears of an AI bubble are sparking tech selloffs. That's changing the calculus for once-pricy semiconductor stocks, Morningstar analysts say.

Artificial intelligence (AI) has emerged as a growing source of market panic these days, with investors increasingly questioning the long-term viability of labor-intensive business models. Recent releases from AI startups have intensified these concerns by introducing tools capable of automating tasks in legal, marketing, finance, and research functions.

There are scores of tech ETFs to consider, but their performances aren't uniform. First Trust Cloud Computing ETF's software-oriened stocks are taking a drubbing.

Artificial intelligence has been one of the most impactful technologies released, and it's only getting better.

An exchange-traded fund (ETF) can be a less risky way to gain exposure to artificial intelligence (AI) than buying individual stocks. VanEck Semiconductor ETF has a great track record over the short and long terms.

The VanEck Semiconductor ETF (NYSEARCA:SMH) manages $44.1 billion in assets but delivers a minimal 0.24% yield.

Micron stock -- the ETF's No. 4 holding -- soared 45.4% in January.

When a single-stock leveraged ETF launches, it's either a gift to speculators or a trap for the unwary.

If you're looking for exposure to AI stocks, the best place to look is in semiconductors. Demand for semiconductors should continue to grow even without AI.

The VanEck Semiconductor ETF has heavy exposure to Nvidia and Taiwan Semiconductor. For equal-weight exposure, the State Street SPDR S&P Semiconductor ETF is a good option.