Key Points
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Micron, Samsung Electronics, and SK Hynix are driving gains in the Roundhill Memory ETF.
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The iShares Semiconductor ETF goes beyond chip stocks to offer more balanced exposure to the semiconductor industry.
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The Vanguard Information Technology ETF is a better way to invest in artificial intelligence (AI) over the long term than buying semiconductor stocks alone.
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The Roundhill Memory ETF (NYSEMKT: DRAM) has arguably been the hottest exchange-traded fund (ETF) of 2026. The fund came to life in April and has already amassed $26 billion in net assets. And even though it’s down 41.7% from its high at the time of this writing, it is still up 69.4% year-to-date (YTD) — outpacing the 45.7% YTD gain in the iShares Semiconductor ETF (NASDAQ: SOXX) and the 33.9% gain in the Vanguard Information Technology ETF (NYSEMKT: VGT).
Here’s what’s driving the outperformance in the Memory ETF and Semiconductor ETF, and why the Vanguard Tech ETF is the better long-term buy.
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Micron, Samsung Electronics, and SK Hynix are 74.7% of the Roundhill Memory ETF
Powered by a clever ticker that nods to dynamic random-access memory (DRAM) used for data processing, the Roundhill Memory ETF is an ultra-concentrated bet on memory chip stocks. Whereas the iShares Semiconductor ETF invests in the broader semiconductor industry. And the Vanguard Information Technology ETF invests in the entire tech sector.
A big bet on memory chip stocks has paid off in 2026, as demand has drastically outpaced supply. High bandwidth memory (HBM) chips play an integral role in artificial intelligence (AI) infrastructure. HBM vertically stacks multiple DRAM chips to boost capacity and processing speed. These memory chips function alongside graphics processing units, central processing units, and custom AI chips in AI data centers — providing the working memory needed to maximize processing power in compute clusters.
The Roundhill Memory ETF has just 21 holdings, with a staggering 28.4% allocation to Micron Technology (NASDAQ: MU), 25.7% in Samsung Electronics (OTC: SSNLF), and 20.6% in SK Hynix (NASDAQ: SKHY) as of Oct. 19.
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ETF Name
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Management Style
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Net Assets
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Expense Ratio
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Holdings
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Inception Date
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Vanguard Information Technology ETF
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Passive
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$177.9 billion
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0.09%
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318
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Jan. 26, 2004
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iShares Semiconductor ETF
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Passive
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$48.4 billion
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0.33%
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30
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July 10, 2001
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Roundhill Memory ETF
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Active
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$26 billion
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0.65%
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21
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April 2, 2026
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Data sources: Vanguard, BlackRock, Roundhill Investments.
With a 0.65% expense ratio, the actively managed Memory ETF is charging a steep fee for investing around 75% of its holdings in just three stocks.
The iShares Semiconductor ETF is a bit more balanced — with a 61.6% weighting in its top 10 holdings. The Semiconductor ETF has a mix of U.S. semiconductor companies, including compute and memory chip makers, equipment companies, and more. Since its inception in 2001, the iShares Semiconductor ETF has produced monster returns, including a 230.1% total return in the last three years compared to a 104.5% total return for the Nasdaq Composite (NASDAQINDEX: ^IXIC). But semiconductors only represent one aspect of the AI investment thesis.
The Vanguard Information Technology ETF has 43.6% invested in semiconductor stocks
While memory stocks are benefiting from a supply and demand imbalance and the semiconductor industry is in a cyclical boom, the broader tech sector is better-positioned to capture both the infrastructure and use case benefits of AI — from software companies developing AI models, tools, and applications to the hardware needed to operate and interact with these tools. The passive managed Vanguard Information Technology ETF is a low-cost, straightforward sector ETF chock-full of top AI stocks. Don’t let its simple structure fool you. The ETF has done a masterful job of capturing different periods of technological innovation — from the rise of mobile capabilities to software-as-a-service to cloud computing, and now AI.
Given the sheer size of major chip companies like Nvidia, the semiconductor and semiconductor material and equipment industries now make up 43.6% of the Vanguard Tech ETF — which is more than software or hardware. Nvidia, Apple, Microsoft, and Micron are the four largest holdings, making up nearly half of the fund. But beyond that, the ETF is more diversified across 314 other holdings.
A low-cost method for personalizing your semiconductor stock portfolio
It wouldn’t surprise me if semiconductor stocks continue driving the broader market to new heights. But long-term investors may prefer to buy the Vanguard Tech ETF over higher-cost ETFs because it provides exposure to the broader tech sector while still holding key positions in top chip stocks. However, it’s worth noting that the Vanguard Tech ETF invests only in U.S. companies. The same goes for the iShares Semiconductor ETF. Meaning these ETFs leave out major international semiconductor stocks — like Taiwan Semiconductor Manufacturing (NYSE: TSM), Samsung Electronics, SK Hynix, and ASML.
Therefore, one approach is to pair a Vanguard Tech ETF position alongside individual stock holdings — such as your top memory stock pick, a semiconductor manufacturing play, an equipment maker, etc. In today’s age of low to zero-cost trading and fractional shares, it’s easy to effectively customize your own ETF for your portfolio.
For example, if you were looking to invest $1,000 in tech stocks but wanted a 5% weighting in Taiwan Semiconductor and a 3% weighting in SK Hynix, you could put $920 into the Vanguard Tech ETF and then $50 into fractional shares of Taiwan Semiconductor and $30 into fractional shares of SK Hynix to build a portfolio that caters to your interests. That way, you still get exposure to the stocks you’re interested in without racking up high ETF fees.
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Daniel Foelber has positions in ASML and Nvidia. The Motley Fool has positions in and recommends ASML, Apple, BlackRock, Micron Technology, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, and iShares Trust-iShares Semiconductor ETF. The Motley Fool has a disclosure policy.
