The best performing ASX ETF holding global stocks delivered a 171% total return in FY26.

This compares with the best performing Aussie-stock-based ETF, which returned an excellent, but still vastly inferior, 51%.

Of course, that doesn't mean we shouldn't invest in ASX shares.

In some years, the ASX will outperform. In others, global stocks — particularly the US markets in recent years — will outperform.

But the FY26 disparity in performance does show the value of diversification in our share portfolios.

Thankfully, ASX ETFs allow us to easily invest in overseas stocks via our local exchange.

Diversification, convenience, and low costs are among the reasons why Aussies have ploughed $372 billion into ETFs over the years.

The providers are responding to the ongoing increase in demand by launching new products.

A record 72 new ASX ETFs began trading in FY26, and there are now 458 in total to choose from.

ASX ETFs that produced triple-digit returns in FY26

Full-year data released by the Australian Securities Exchange shows only three ASX ETFs provided triple-digit returns last financial year.

Let's find out more about them.

iShares MSCI South Korea AUD ETF (ASX: IKO)

The IKO ETF delivered a sensational one-year total return of 171%. The historical distribution yield is 4.6%.

This month, IKO ETF paid the biggest dollar-value dividend of all of BlackRock's iShares ETFs at $13.98 per unit.

IKO ETF seeks to mirror the tech-heavy MSCI Korea 25/50 Index, providing exposure to Korean large caps and mid caps.

The top two holdings are memory chip manufacturer SK HYNIX INC (27%) and consumer electronics and semiconductor manufacturer Samsung Electronics (23%).

This ASX ETF's success in FY26 is directly linked to the massive artificial intelligence (AI) investment thematic.

In BlackRock's mid-year review, Helen Jewell, International Chief Investment Officer for Fundamental Equities, said the US may dominate AI investment, but there are "real opportunities to invest in mega force value chains and find diversification elsewhere".

Jewell said countries like South Korea "have become proxies for the AI mega force", but warns that geographic diversification in our portfolios does not protect against concentration risk when multiple markets are tied to the same value chain.

She explains:

Investors should watch country-level concentration risk.

Case in point: Taiwan and South Korea equities are plays on the chips value chain, with equity markets that are large relative to GDP and heavily exposed to a handful of AI-linked companies.

IKO ETF demonstrates this risk.

While it holds 82 stocks representative of the South Korean market, the top two represent 50% of the fund's total investment.

Additionally, more than 50% of those 82 companies are in the technology sector.

Global X Semiconductor ETF (ASX: SEMI)

The SEMI ETF produced an astounding one-year total return of 161%. The historical distribution yield is 6.2%.

Like IKO, SEMI is also directly linked to the AI thematic.

Semiconductors, which control electrical currents in computer chips, are essential for AI and are present in many everyday devices like smartphones.

SEMI ETF's top holdings are Micron Technology (12%), which designs and manufactures memory and storage chips; Advanced Micro Devices (10%), which designs processors and graphics chips; Taiwan Semiconductor Manufacturing Company (8%), the world's leading contract manufacturer of semiconductor chips; and Nvidia (8%), which designs graphics processors and AI chips.

Global X says Aussie investors need to go outside the local bourse to access the AI investment thematic.  

In an article, Global X said:

This year, share markets in the United States, Japan, South Korea and Taiwan have delivered strong gains as investors pour money into companies building the technology that powers AI.

Computer chip manufacturers, data centre operators and technology firms have become some of the world's most valuable businesses as demand for AI continues to surge.

Australia's share market looks very different.

The ASX is dominated by banks, miners and mature dividend-paying companies. These businesses remain important and can play a valuable role in a portfolio, but they generally have less direct exposure to the AI boom than many of their overseas counterparts.

As a result, investors who focus exclusively on Australian shares may be missing out on one of the most significant growth opportunities in global markets.

Global X Hydrogen AUD ETF (ASX: HGEN)

The HGEN ETF produced an outstanding total one-year return of 135% in FY26. The historical distribution yield is 0.7%.

HGEN invests in companies within the global hydrogen industry.

Hydrogen is expected to play a key role in the global green energy transition.

Global X explains the ASX ETF's thesis:

The global demand for hydrogen is expected to nearly double between 2021 and 2030.

Hydrogen-powered fuel cells produce zero direct emissions, meaning broader adoption could result in reduced greenhouse gas emissions and improved air quality.

The shift to green energy isn't confined to a single sector or region. HGEN invests accordingly, with global exposure across multiple industries.

This includes companies involved in hydrogen production; the integration of hydrogen into energy systems; and the development/manufacturing of hydrogen fuel cells, electrolysers, and other technologies related to the utilisation of hydrogen as an energy source.

The top holding is Bloom Energy (15%), a US company that designs and manufactures solid oxide fuel cells that produce on-site electricity for power generation in data centres, manufacturing, and other commercial sectors.

The next two top holdings are Kaori Heat Treatment Co (9%), a Taiwanese company that manufactures heat exchangers and thermal management systems; and Plug Power (8%), a US company that develops hydrogen fuel cell systems, electrolysers, and hydrogen infrastructure for industrial and transport applications.  

The post 3 ASX ETFs that delivered triple-digit returns in FY26 appeared first on The Motley Fool Australia.

And Aussie investors love 'em.

There is now a record $372 billion invested across 458 ETFs on the market today, according to Betashares data.

Demonstrating their rising popularity, ASX ETFs attracted a net $30 billion of investment in the second half of FY26.

Back in 2024, $30 billion was the amount invested over the full year.

The industry is responding by introducing new products, with a record 72 new ETFs commencing trading in FY26.

This product expansion is allowing investors to direct more money into thematic trends.

Senior investment strategist, Marc Jocum from Global X commented (courtesy Australian Financial Review):

It's been a record year for thematic ETF investing driven by the energy transition and AI, so the way Aussie investors are allocating is changing.

Historically, investors sought outperformance through active managers, but that is slowly changing as investors are now seeking outperformance through exposure selection instead – the past was 'who' to back, now it's 'what' to back.

The Australian Securities Exchange has just released the full-year performance data for ASX ETFs in FY26.

The data reveals the six ASX ETFs holding international shares that delivered the best total returns last year.

Let's take a look.

Top 6 international ETFs for total returns in FY26

The popularity of thematic investing is showcased in the top 6 ASX ETFs for total returns last financial year.

Total returns incorporate both share price gains and distributions (dividends).

1. iShares MSCI South Korea AUD ETF (ASX: IKO)

The IKO ETF delivered a spectacular one-year total return of 171%. The historical distribution yield is 4.6%.

This ASX ETF seeks to mirror the tech-heavy MSCI Korea 25/50 Index, providing exposure to Korea's largest companies.

IKO ETF paid the biggest dollar-value dividend among iShares ETFs this season at $13.98 per unit.

IKO ETF is $246.58 per unit, up 2.7% on Thursday.

2. Global X Semiconductor ETF (ASX: SEMI)

The SEMI ETF produced a ripping one-year return of 161%. The historical distribution yield is 6.2%.

SEMI is linked to the massive artificial intelligence (AI) investment thematic.

Semiconductors control electrical currents in computer chips and everyday devices like smartphones.

SEMI ETF is $38.01 per unit, up 2.1% today.

3. Global X Hydrogen AUD ETF (ASX: HGEN)

The HGEN ETF returned 135% in FY26. The historical distribution yield is 0.7%.

HGEN invests in companies within the global hydrogen industry. Hydrogen is considered a powerful green energy source.

HGEN ETF is $9.89 per unit, up 0.5% today.

4. Betashares Asia Technology Tigers ETF (ASX: ASIA)

The ASIA ETF delivered a one-year return of 96%. The historical distribution yield is 1.7%.

ASIA ETF invests in 50 of the largest technology and online retail shares in Asia (ex-Japan).

ASIA ETF is $20.39 per unit, up 1.7% today.

5. Betashares Energy Transition Metals ETF (ASX: XMET)

The XMET ETF delivered a one-year return of 83%. The historical distribution yield is 3.6%.

This ASX ETF invests in global metals producers specifically involved in the green energy transition.

The metals in demand include copper, lithium, nickel, cobalt, graphite, manganese, silver, and rare earths.

XMET ETF is $14.03 per unit, up 1.6%.

6. Global X S&P Biotech ETF (ASX: CURE)

The CURE ETF delivered a total annual return of 81%. This ETF does not pay distributions.

CURE ETF invests in genomic science companies.

They include businesses involved in gene editing, genomic sequencing, and genetic medicine and therapy.

CURE ETF is $73.83 per unit, down 1% today.

The post 6 best international ASX ETFs of FY26 appeared first on The Motley Fool Australia.

According to the report, the Australian ETF industry closed the financial year at a record $372 billion in funds under management, with $400 billion now firmly in sight. 

Net flows of $30 billion for the half matched the entirety of 2024, while AI-driven tech exposures led performance.

Market insights 

According to the report, global equity markets rallied through the first half of 2026, powered by evidence that AI capital expenditure is starting to convert into profit. 

Microsoft, OpenAI, and Anthropic all reported AI revenue run rates up more than 100% year on year, while Nvidia and the major memory makers, Samsung, SK Hynix, and Micron, were the clearest beneficiaries of the compute build-out. 

Asian semiconductor markets captured this directly, with North Asian chipmakers driving the MSCI Emerging Markets Index to the strongest returns of any major market, even as an Iran-triggered oil spike and a US$1.5 trillion software sell-off tested the rally's nerve during the half. 

Domestically, the S&P/ASX 200 Index (ASX: XJO) managed just 2.4% over the same six months, the weakest of the major developed markets. 

Three RBA rate hikes in the half pushed inflation and unemployment back into focus, rewarding income and value over growth. 

Materials carried the bulk of the market's earnings growth, benefiting from elevated iron ore and gold prices and from critical mineral demand driven by the AI rollout. 

The May budget's proposed removal of the CGT discount added further uncertainty for households already absorbing higher borrowing costs, and the combination has weighed on consumer sentiment through the half. 

Performance – Half Year 2026

The Betashares Australian ETF Review revealed that the half-year performance was led by semiconductors, with AI-related hardware demand driving standout returns over the period. 

South Korea's technology-heavy market also featured prominently, alongside broader Asian technology exposure, reinforcing a theme of innovation-driven outperformance. 

Hydrogen and clean energy themes made a strong showing, pointing to renewed appetite for energy transition plays. 

Crude oil rounded out the top five, with prices driven sharply higher by the Middle East conflict and resulting disruptions to the Strait of Hormuz, a key global oil transit route.

Top 5 performing funds for the half year to June 2026: 

• Global X Semiconductor ETF (ASX: SEMI) rose almost 102%
• iShares MSCI South Korea ETF (ASX: IKO) climbed 94%
• Global X Hydrogen ETF (ASX: HGEN) rose 70% 
• Betashares Capital – Asia Technology Tigers ETF (ASX: ASIA) increased by 59%
• BetaShares Crude Oil Index ETF – Currency Hedged (Synthetic) (ASX: OOO) rose over 44%

The post The ASX ETF market is set for a record year – Here are the best performers so far in 2026 appeared first on The Motley Fool Australia.

The biggest dollar-value dividend on its schedule is $16.34 per unit for Global X Battery Tech & Lithium ETF (ASX: ACDC).

The gigantic ACDC ETF dividend is primarily due to the massive rebound in lithium commodity prices over FY26.

Australia is in the midst of a new mining boom driven by the green energy transition and the artificial intelligence (AI) build-out.

This is creating much higher demand for critical minerals, such as lithium, and base metals, such as copper. 

Lithium prices crashed in 2023-2025 due to global oversupply, but supply/demand finally rebalanced at the start of FY26.  

Lithium topped the list of Australia's best-performing commodities for growth in FY26 by a long shot.

The lithium spodumene price soared 280%, and carbonate increased 160%. 

So, it's no surprise to see an ASX ETF full of lithium producers and battery manufacturers paying out big this dividend season.

Global X ASX ETF dividends

Here is an abridged list of finalised distributions that investors will receive today.

View a complete list of finalised Global X ETF dividends here.

Own other ETFs?

Here are the finalised distributions from other ETF providers this season. 

If you own Vanguard ETFs, view this season's final distributions here.

Interested in VanEck ETFs? View final distributions here.

If you're invested in iShares ETFs, see final distributions here.

If you own Betashares ETFs, see final distributions here.

The post Own ACDC, FANG, or SEMI ETF? Global X is paying your dividend today! appeared first on The Motley Fool Australia.

Index tracking ETFs, such as those that seek to replicate the performance of the S&P/ASX 200 Index (ASX: XJO), for example, are popular; however, if you're looking for outsized gains, it can pay to look further afield into sectors that have strong economic tailwinds behind them.

While past performance is no guarantee of future performance, let's have a look at three such funds that have done well over the past year.

Global X Hydrogen ETF (ASX: HGEN)

This ETF is a relatively small one, with just $45 million in assets under management.

The fund aims to invest in companies that stand to benefit from the advancement of the global hydrogen industry.

The fund's website adds:

This includes companies involved in hydrogen production; the integration of hydrogen into energy systems; and the development/manufacturing of hydrogen fuel cells, electrolysers, and other technologies related to the utilisation of hydrogen as an energy source.

The fund has returned 98.5% over the past year after falling back 5.2% over the past month.

Global X Semiconductor ETF (ASX: SEMI)

This fund "seeks to invest in companies that stand to potentially benefit from the broader adoption of tech-enabled devices that require semiconductors''.

This is a much larger fund, with $1.1 billion in funds under management.

Some of the fund's top holdings include Micron Technology, SK Hynix, Nvidia, and Intel.

This fund has returned 136.4% over the past year and 83.5% year to date.

Betashares Energy Transition Metals ETF (ASX: XMET)

This fund aims to track an index providing exposure to global companies in the energy transition metals field – think metals such as lithium, copper, nickel, and graphite.

The fund's website says:

The transition from fossil fuels to clean energy solutions is driving growth in a range of disruptive products and processes such as renewable energy generation, battery storage solutions, and electric vehicles, all of which are critically dependent on the select group of energy transition metals that XMET provides exposure to.

The fund's top holdings include PLS Group Ltd (ASX: PLS), BHP Group Ltd (ASX: BHP), and Lynas Rare Earths Ltd (ASX: LYC).

This fund has returned 83.9% over the past year.

The post 3 ASX ETFs that have returned better than 80% over the past year appeared first on The Motley Fool Australia.

SK Hynix Inc (NASDAQ: SKHY), the South Korean chipmaker that supplies the high-bandwidth memory sitting inside almost every Nvidia processor, sold 177.9 million American depositary shares at US$149 each on 9 July. The company raised approximately US$26.5 billion.

The securities began trading on the Nasdaq on 10 July under the ticker SKHY, closing their first session up approximately 13% at US$168.

That makes it the largest US listing ever by a foreign company, surpassing Alibaba's US$25 billion debut in 2014.

It is also the second-largest globally after SpaceX's US$85.7 billion Nasdaq listing in June.

Is this technically speaking a SK Hynix IPO?

Despite the headlines, this was not technically an IPO.

SK Hynix's common shares have traded on the Korea Exchange for decades, and the company was already valued above US$1 trillion before the US listing.

What happened last Friday was an American depositary share offering, creating a new US-traded security tied to an already-public business rather than floating a previously private company.

SK Hynix did not become a public company through this offering. However, it made itself far easier for American and international investors to own.

Why the AI memory story is important for ASX investors

SK Hynix reported revenue of 97.1 trillion won, approximately US$64.1 billion, in 2025, a company record.

Net income reached 42.9 trillion won, or approximately US$28.3 billion, implying a net profit margin of 44%.

Its Korea-listed shares have risen by more than 515% over the past 12 months as high-bandwidth memory has become a critical bottleneck in AI infrastructure.

The company captures approximately 56% of the global HBM market, according to its SEC filing.

For ASX investors, that AI memory demand story connects directly to two ASX-listed funds and one Australian company.

Global X Semiconductor ETF (ASX: SEMI)

The most direct ASX exposure to SK Hynix is through the Global X Semiconductor ETF.

SK Hynix is already one of SEMI's largest holdings, sitting alongside Micron, AMD, TSMC, and Nvidia.

SEMI holds just 30 companies tracking the Solactive Global Semiconductor 30 Index, making it a concentrated, high-conviction way to own the semiconductor supply chain from the ASX.

That concentration cuts both ways.

The fund is heavily exposed to the memory cycle, which has historically been one of the most volatile in technology. The sector has periods of shortage-driven price surges followed by oversupply and collapsing margins.

SK Hynix's own capital expenditure plans, including two new fabrication complexes in South Korea, are examples of capacity expansion that have triggered previous downturns.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF is the other route, though the connection is less immediate.

SK Hynix's Nasdaq listing raises the prospect of eventual NASDAQ-100 Index (NASDAQ: NDX) inclusion. This would force every fund tracking that index, including NDQ, to buy SKHY.

That is the same dynamic that played out with SpaceX's fast-track inclusion earlier this month.

NDQ holders should understand that index inclusion is not automatic and would depend on SK Hynix meeting the exchange's eligibility criteria for foreign-domiciled ADRs.

NextDC Ltd (ASX: NXT)

NextDC is the Australian company most directly connected to the same underlying trend.

The AI memory shortage driving SK Hynix's extraordinary revenue growth stems from AI data centres consuming HBM faster than manufacturers can produce it.

NextDC builds and operates those data centres in Australia.

Contracted utilisation surged 60% to 667MW in the March 2026 quarter alone, and the company's forward order book is expected to generate contracted EBITDA in excess of A$1 billion.

Every dollar of SK Hynix's memory revenue reflects AI compute demand that must be housed somewhere, and in Australia, that increasingly means NextDC.

Foolish Takeaway for the SK Hynix IPO

SK Hynix's IPO is a landmark moment for the AI memory trade.

For ASX investors, SEMI provides the most direct exposure, NDQ offers a potential future index-inclusion angle, and NextDC captures the same underlying AI infrastructure demand from the Australian side.

But investors should remember that memory is a famously cyclical industry.

A wave of AI companies rushing to IPO at peak valuations has historically been a signal worth treating with caution rather than enthusiasm.

The post SK Hynix IPOs in the US. Here's what that means for ASX investors appeared first on The Motley Fool Australia.

Global conflict, inflation and high interest rates have dominated headlines this year. 

These have weighed on markets here in Australia. 

As a result, the S&P/ASX 200 Index (ASX: XJO) has risen just 0.4% year to date. 

However, there have been several ASX ETFs that have shaken headwinds and raced ahead of Australia's benchmark index. 

Here are three in particular that have performed well this year. 

Global X Semiconductor ETF (ASX: SEMI)

An emerging theme this year has been the surge in semiconductor-related companies. 

A semiconductor is a material like silicon that can be precisely controlled to conduct or block electricity. This lets engineers build the tiny transistor switches that make up computer chips. 

It's critical to the AI buildout because every bit of AI training and inference runs on these chips.

This ASX ETF has harnessed this momentum and enjoyed a rise of 66% year to date. 

The fund from Global X seeks to invest in companies that stand to potentially benefit from the broader adoption of tech-enabled devices that require semiconductors. 

Investors have been using a "picks and shovels" approach to AI, which has benefited this fund. 

During a gold rush, the safer bet isn't panning for gold yourself, it's selling the pickaxes to everyone who is. 

Investors are applying the same logic to AI. They are essentially moving money into companies that supply the AI buildout rather than betting on which AI application or model wins.

Global X Cybersecurity ETF (ASX: BUGG)

Another strong-performing fund this year has been this cybersecurity-focused ETF.

It seeks to invest in companies that stand to benefit from the increased adoption of cybersecurity technology, particularly those whose principal business is in the development and management of security protocols preventing intrusion and attacks on systems, networks, applications, computers, and mobile devices.

Increasing reliance on digital ecosystems has left individuals, businesses, and governments vulnerable to the exponential rise of cyber threats, and this has led to increased investment in the sector. 

This growth has led to a 21% rise for this fund year to date. 

Betashares Global Momentum ETF (ASX: GTUM)

This ASX ETF is one of the newest funds on the ASX – listing in February this year. 

In just a short span, it has made a big impact, rising 18% in that period. 

GTUM aims to track the performance of an index (before fees and expenses) comprising a portfolio of global developed markets companies (excluding Australia) with above average momentum scores, as measured by risk-adjusted returns.

The Index ranks stocks within the eligible universe based on 6 and 12-month risk adjusted returns to target more sustainable positive momentum over sharp, highly volatile run-ups. 

Stocks displaying consistently strong positive momentum over recent history are rewarded with higher weights in the index.

The post 3 of the best ASX ETFs to own right now appeared first on The Motley Fool Australia.

The ex-dividend date for this round of dividends is 3 July. Global X will pay investors on 17 July.

As is the case with other ETF providers this season, there are some whopper payments on the schedule.

The biggest dollar-value dividend is an incredible $16.26 per unit for owners of Global X Battery Tech & Lithium ETF (ASX: ACDC).

ACDC's mega dividend reflects the huge rebound in lithium prices over FY26.

Lithium commodity prices have soared due to renewed demand for batteries amid the global green energy transition.

As an example, the price of lithium carbonate has risen 148% in 12 months.

Lithium's rebound has translated into supercharged earnings for ASX and international lithium miners.

That's why ACDC ETF is paying out big this season.

Let's take a look.

Mid-year dividends for Global X ASX ETFs

Here is a sample of the estimated distributions to be paid by Global X this season.

Global X will confirm the final amounts on Thursday.

View a complete list of estimated Global X ETF dividends here.

Own other ETFs?

If you own Vanguard ETFs such as Vanguard Australian Shares Index ETF (ASX: VAS), see this season's estimated distributions here.

Invested in VanEck ETFs? View VanEck dividends here.

As for other mega dividends this season, find out which ETF is set to pay $18 per unit this season and why.

The post Own FANG, WIRE or SEMI ETF? Global X just revealed your next dividend appeared first on The Motley Fool Australia.

It is natural to wonder whether the easy gains have already been made, especially when markets have been strong.

But I do not think a 52-week high is automatically a reason to stay away. Some ETFs reach new highs because the businesses inside them are continuing to grow, innovate, and generate value.

With that in mind, here are three high-quality ASX ETFs I would still buy after they hit 52-week highs on Monday.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The Vanguard MSCI Index International Shares ETF is the kind of fund I think many investors could hold for decades.

It gives exposure to a broad range of developed-market shares outside Australia. That includes many of the world's largest companies across technology, healthcare, financials, industrials, consumer goods, and communication services.

What I like about this ETF is that it does not require investors to predict which single country, sector, or company will lead the next stage of global growth. It spreads the money across a large group of businesses that operate in many different parts of the world.

That can be valuable for Australian investors. The local market has some excellent companies, but it cannot offer the same depth in global software, semiconductors, pharmaceuticals, luxury goods, payments, consumer platforms, and industrial leaders. This ETF helps fill that gap in one trade.

iShares S&P 500 AUD ETF (ASX: IVV)

The iShares S&P 500 AUD ETF is another fund I would still buy.

It tracks the popular S&P 500 Index, which gives investors access to many of America's biggest and best companies.

This ETF owns companies involved in cloud computing, artificial intelligence (AI), smartphones, digital advertising, healthcare, payments, retail, food, logistics, and financial services.

That mix is what makes it so attractive in my view. The fund is not just a bet on the US consumer. Many of the companies inside the S&P 500 earn revenue around the world. They are global businesses listed in the United States.

The index has also been a strong long-term wealth creator. Past returns are not a guarantee of future performance, but I think the quality and scale of the companies inside the S&P 500 give it a good chance of continuing to reward patient investors over long periods.

There will be downturns. Valuations can become stretched, and the largest technology companies now have a major influence on index returns. Even so, I think this remains one of the best funds available to investors.

Global X Semiconductor ETF (ASX: SEMI)

The Global X Semiconductor ETF is a more focused option. That means it comes with more risk, but I think the long-term theme is compelling.

Semiconductors sit behind many of the most important parts of the modern economy. They are used in data centres, AI, cars, smartphones, industrial equipment, defence systems, medical devices, cloud computing, and consumer electronics.

I like the SEMI ETF because it gives exposure to the companies enabling that demand, rather than trying to pick a single winner.

The semiconductor industry can be cyclical. Demand can move sharply, inventories can shift, and capital spending can rise and fall. Investors should expect more volatility than they would from a broad global ETF.

But I think chips are becoming more important. If artificial intelligence, automation, electrification, and connected devices keep growing, demand for advanced semiconductors should remain a major investment theme.

Foolish takeaway

I do not think investors need to avoid an ETF just because it has reached a 52-week high.

The better question is whether the fund still gives exposure to assets that can become more valuable over time.

For me, these three ETFs do that in different ways. One offers broad developed-market exposure, another owns many of America's largest companies, and the third focuses on one of the most important industries in the digital economy.

If I were investing with a long-term mindset, I would still be happy buying all three.

The post 3 high-quality ASX ETFs at 52-week highs I'd still buy appeared first on The Motley Fool Australia.

But picking the winners is not easy. Some companies will dominate more than others and valuations across the sector can move quickly when sentiment changes.

That is why the Global X Semiconductor ETF (ASX: SEMI) could be worth a closer look.

A different way to play AI

This ASX exchange traded fund (ETF) gives investors exposure to the companies making the chips, equipment, and technology that sit behind the AI buildout.

That is important because AI needs enormous amounts of computing power, memory, networking, and advanced manufacturing capacity.

This puts semiconductor companies right at the centre of the trend. Whether the winners are cloud giants, software platforms, robotics companies, or autonomous vehicle businesses, many of them will need more chips to keep growing.

The fund's holdings include Taiwan Semiconductor Manufacturing Co (NYSE: TSM), NVIDIA (NASDAQ: NVDA), and ASML Holding (NASDAQ: ASML). These businesses sit at different points of the semiconductor supply chain, from chip design and manufacturing to the highly specialised equipment needed to produce advanced chips.

Why it could be attractive

The semiconductor industry has historically been cyclical, but the current demand backdrop looks unusually powerful.

AI models are becoming larger, data centres are requiring more powerful hardware, and companies across the world are racing to build the infrastructure needed for next-generation computing.

This doesn't mean it will be smooth sailing for the ASX ETF. Semiconductor shares can be volatile, especially when investors worry about valuations, inventory cycles, or capital spending.

But over the long term, the need for more computing power looks difficult to ignore.

The fund also gives Australian investors exposure to an area that is not well represented on the ASX. Local investors can own banks, miners, supermarkets, and property trusts easily. Getting meaningful exposure to global chip leaders is much harder without looking offshore.

Is it a buy?

This ASX ETF will not be suitable for everyone. It is concentrated in one industry, which means it can fall sharply if the semiconductor cycle turns.

But for investors comfortable with volatility, it offers a great way to gain exposure to one of the most important parts of the global technology stack.

If AI continues to reshape the economy, the companies supplying the hardware behind it could remain in demand for many years. That makes this fund arguably one of the more interesting ASX ETF options for growth-focused investors.

The post Could this ASX ETF be the best way to invest in the AI boom? appeared first on The Motley Fool Australia.

ETF providers are consistently coming up with newly designed funds to track niche areas of the market. 

For examples of this, look no further than the recently listed Betashares Space Industry ETF (ASX: RCKT). 

After listing in mid-May, the fund has already rocketed (excuse the pun) 13%. 

However it wasn't the only thematic fund to perform well during May. 

Why target thematic ASX ETFs?

Thematic ASX ETFs can offer investors a simple way to back powerful long-term trends. 

Popular themes include artificial intelligence and cybersecurity to clean energy and biotech.

Rather than picking individual winners, investors gain exposure to a basket of companies positioned to benefit from a particular theme. 

This can help diversify and spread risk while capturing broad industry growth. 

These funds can also provide valuable insight into market sentiment, as strong inflows often signal growing investor confidence in a sector or economic trend. 

However, thematic investing is not without risks. 

Popular themes can become crowded, valuations may become detached from fundamentals, and trends that appear transformative today may fail to deliver the expected returns. 

With that in mind, here were three of the top performing funds during May. 

Global X Cybersecurity ETF (ASX: BUGG)

This ASX ETF was a market winner during the month of May. 

In the last four weeks, it has risen an astonishing 42%. 

The fund seeks to invest in companies that stand to benefit from the increased adoption of cybersecurity technology, particularly those whose principal business is in the development and management of security protocols preventing intrusion and attacks on systems, networks, applications, computers, and mobile devices.

At the time of writing, it is made up of roughly 28 holdings, with the majority based in the US. 

Global X China Tech ETF (ASX: DRGN)

Another high performing ASX ETF during May was the China focussed fund from Global X. 

It has risen more than 13% over the last 4 weeks, driven by semiconductor and AI tailwinds. 

The fund offers access to 20 leading Chinese technology companies listed in Hong Kong and Mainland. With a rules-based selection process across 15 core sectors including semiconductors, robotics, software, and internet platforms, DRGN captures China's strategic push into self-sufficient innovation.

Global X Semiconductor ETF (ASX: SEMI)

It has been a similar story for this Semiconductor focussed ASX ETF. 

It has risen by more than 25% in the last month. 

The fund seeks to invest in companies that stand to potentially benefit from the broader adoption of tech-enabled devices that require semiconductors. This includes the development and manufacturing of semiconductors.

The post What are the best performing thematic ASX ETFs right now? appeared first on The Motley Fool Australia.

It has risen an impressive 148% in that span. 

A new report from Global X has identified the key catalysts for this growth, and why these are only likely to continue. 

Fund overview 

The Global X Semiconductor ETF seeks to invest in companies that stand to potentially benefit from the broader adoption of tech-enabled devices that require semiconductors. This includes the development and manufacturing of semiconductors.

It provides exposure to 30 of the world's largest semiconductor companies through the Solactive Global Semiconductor 30 Index.

Rather than trying to pick the next breakout AI winner, the ETF offers diversified exposure across the global semiconductor supply chain.

For those unfamiliar, a semiconductor is a material that can both conduct and block electricity, depending on how it's used.

This unique ability makes semiconductors essential to modern technology. They're used to create microchips that power smartphones, computers, cars, and medical equipment.

Why business is booming 

Semiconductors are the "brains" inside modern technology. They process information, store memory and power computation. Without them, AI simply does not exist.

The semiconductor industry sits at the centre of several major structural themes:

• Artificial intelligence and data centres
• Cloud computing
• Electric vehicles and autonomous driving
• Robotics and automation
• Defence technology
• Consumer electronics

According to Global X, as AI adoption accelerates, demand for advanced chips has exploded. 

Training large AI models requires enormous computing power, which in turn requires increasingly sophisticated semiconductors.

That has created a powerful tailwind for the companies designing chips, manufacturing them and supplying the equipment needed to build them.

The companies leading the way 

This ASX ETF includes 30 holdings, including strong exposure to the four companies powering the AI boom. 

According to Global X, one of the reasons semiconductor investing has become so compelling is that the industry contains some of the most strategically important companies in the world, including:

• Nvidia (NASDAQ: NVDA) – is a leader in the AI revolution because its GPUs power many advanced AI systems and data centres.
• Taiwan Semiconductor Manufacturing (NYSE: TSM) – is vital to the global tech industry, producing many of the world's most advanced chips for companies like Nvidia and Apple.
• ASML (NASDAQ: ASML) – is essential because it is the only company that makes EUV lithography machines needed to manufacture cutting-edge semiconductors.
• Broadcom (NASDAQ: AVGO) – plays an important role in AI by designing custom chips for major technology companies such as Google and Meta.

The opportunity for investors 

Semiconductors have become one of the defining investment themes of the decade because they sit at the intersection of AI, automation and digital infrastructure.

However it is important investors are aware that semiconductor stocks can be volatile, particularly after strong rallies. 

The long-term investment case increasingly centres on the idea that chips are no longer cyclical industrial products alone; they are now strategic infrastructure for the digital economy.

For retail investors looking to better understand the AI boom, semiconductors may be one of the clearest places to start. And rather than trying to identify the next individual winner, diversified exposure through vehicles like Global X Semiconductor ETF (SEMI) offers a way to participate in the broader transformation underway across global technology markets.

The post The growing case for this semiconductor ASX ETF appeared first on The Motley Fool Australia.

James Gerrish from Shaw and Partners says Amazon, Microsoft, Google parent, Alphabet, and Facebook parent, Meta Platforms, are the hyperscalers of AI, and they plan to spend a combined $725 billion on AI development this year alone.

In a recent Market Matters newsletter, Gerrish said:

All four companies appear to be following the same narrative – the cost of falling behind in AI is greater than the risk of overspending.

Gerrish noted that 70% to 75% of this capex spending was going to AI infrastructure.

AI infrastructure includes GPUs, custom silicon, data centres, networking, and the energy and cooling systems required to run them.

This is a clear shift beyond traditional cloud computing capex, Gerrish said.

Gerrish provided an assessment and guidance on three ASX exchange-traded funds (ETFs) with exposure to the AI infrastructure buildout.

Here are his thoughts.

Global X Semiconductor ETF (ASX: SEMI)

The ASX SEMI is $35.47 apiece, down 2.3% on Tuesday and up 51% in the year to date (YTD).

Semiconductors control electrical currents in devices like computer chips and smartphones.

Gerrish said:

In simple terms, no AI model gets trained, no data centre gets built, and no smart device gets made without the chips SEMI's holdings produce, making it the most direct play on the raw computing power driving the entire AI buildout.

If the AI buildout continues to accelerate, this is where the capex flows first.

The ETF holds 31 global stocks, with more than 60% exposure to US names, positioning it at the pointy end of the AI infrastructure cycle.

It has already delivered ~36% in 2026, and we see scope for further upside, provided hyperscaler spending remains robust.

The world's biggest semiconductor manufacturer, Taiwan Semiconductor Manufacturing Company, and semiconductor designers Broadcom and Nvidia are among this ETF's largest holdings.

In terms of a buy-in price, Gerrish said he was bullish on this ASX ETF at about $31 apiece:

We like the SEMI ETF through 2026, but from a risk/reward perspective, would leave some flexibility to add into the next ~$3-4 pullback.

VanEck FTSE Global Infrastructure (Hedged) ETF (ASX: IFRA)

IFRA ETF is $25.19 apiece, up 1.2% today and up 8% YTD.

Gerrish said:

The IFRA ETF gives ASX investors diversified exposure to the world's essential infrastructure operators, electric utilities, toll roads, pipelines, airports and rail networks across developed markets.

It can be considered the boring backbone of the AI buildout, with every data centre needing a power grid, and IFRA owns the companies that run them.

However, the returns over the last year haven't been particularly boring, with the ETF up more than +16%.

The ETF holds about 150 stocks with more than 70% exposure to the US and Canada.

The ASX ETF's top holding is Australian toll road operator Transurban Group (ASX: TCL).

Gerrish added:

It's arguably less sexy than the pure AI plays, but increasingly relevant, data centres require enormous amounts of electricity, cooling, and physical construction.

The more AI adoption accelerates, the more demand rises for the heavy industries that support it.

For good measure, the ETF is also forecast to yield almost 3% over the coming 12-months.

Gerrish said he is bullish and 'long' on this ASX ETF, and it is held in the Market Matters' Core ETF portfolio.

Global X Artificial Intelligence Infrastructure ETF (ASX: AINF)

AINF ETF is $17.44 apiece, down 2.5% today and up 17% YTD.

Gerrish said:

AINF arguably offers the purest exposure among the four ETFs looked at today, providing targeted access to the physical backbone of AI, spanning energy, data and materials infrastructure.

This includes copper and uranium producers, utilities and engineering firms, effectively everything required to build and power the data centres underpinning AI's global expansion.

Only launched in April 2025, the AINF was the first ASX-listed fund targeting the physical buildout of AI, and it has delivered a strong ~20% return in 2026.

The AINF ETF invests in 31 stocks with about 50% exposure to the US market.

The largest positions are Delta Electronics Inc, GE Vernova Inc, and Vertiv Holdings Co.

In terms of value, Gerrish said he was bullish on this ASX ETF below $18:

We like this ETF moving forward, but from a risk/reward perspective, we would leave room to average into dips below $17.

The post Best 3 ASX ETFs to leverage massive artificial intelligence buildout appeared first on The Motley Fool Australia.

Instead of trying to choose the winning company in a fast-moving sector, investors can use ETFs to spread their money across a group of businesses operating in the same space.

Here are three ASX ETFs for smart investors to take a closer look.

Betashares Global Cybersecurity ETF (ASX: HACK)

The first ASX ETF to look at is the Betashares Global Cybersecurity ETF.

Cybersecurity has become one of the non-negotiable costs of doing business. Every company with customer data, cloud systems, online payments, or remote workers needs protection.

That makes this a spending category that is unlikely to disappear, even when economic conditions become more uncertain.

The Betashares Global Cybersecurity ETF provides exposure to global companies involved in cybersecurity software, hardware, and services. Its holdings include Zscaler (NASDAQ: ZS), Check Point Software Technologies (NASDAQ: CHKP), and Gen Digital (NASDAQ: GEN).

For investors wanting exposure to a technology theme with a clear real-world need, it could be an ETF to watch.

Global X Artificial Intelligence ETF (ASX: GXAI)

Another ASX ETF that could be worth looking at is the Global X Artificial Intelligence ETF.

Artificial intelligence is no longer just a story about chatbots or chip demand. It is becoming a layer of technology that can be built into software, healthcare, finance, manufacturing, logistics, and customer service.

The Global X Artificial Intelligence ETF gives investors access to companies that could benefit from the development and use of AI across different industries.

Its holdings include SK Hynix (NYSE: JNSB), Advanced Micro Devices (NASDAQ: AMD), and Broadcom (NASDAQ: AVGO).

This gives the fund exposure to the hardware that supports AI workloads, as well as the broader ecosystem developing around data processing and automation.

Overall, the Global X Artificial Intelligence ETF provides smart investors with a basket of companies positioned around one of the biggest technology shifts of the decade. It was recently recommended by analysts at Global X.

Global X Semiconductor ETF (ASX: SEMI)

A third ASX ETF worth considering is the Global X Semiconductor ETF.

Semiconductors sit underneath almost every major technology trend. Smartphones, electric vehicles, cloud computing, automation, gaming, defence systems, and artificial intelligence all need chips to function.

The Global X Semiconductor ETF provides exposure to global companies involved in semiconductor design, manufacturing, equipment, and related supply chains.

Its holdings include Taiwan Semiconductor Manufacturing Company (NYSE: TSM), ASML Holding (NASDAQ: ASML), and Qualcomm (NASDAQ: QCOM).

This gives investors access to different parts of the chip industry rather than relying on a single company or one part of the supply chain.

Demand can be cyclical, and the sector can be volatile. But over the long term, the world is becoming more chip-intensive. The Global X Semiconductor ETF offers a direct way to invest in that shift through the ASX. It was also recently recommended by the team at Global X.

The post Here are 3 ASX ETFs for smart investors to buy appeared first on The Motley Fool Australia.

The Australian ETF Review shows that the diversification of ASX ETFs is attracting more and more investors every month, particularly into international funds.

After a turbulent few months, global markets staged a strong rebound in April, helping push the Australian ETF industry to a new record of $346 billion in funds under management. Combined with another month of net inflows exceeding $5 billion, the industry recorded its third largest monthly gain in history.

April overview

According to Betashares, the Australian ETF industry set a new record in April, reaching $346 billion in funds under management following another month of inflows exceeding $5 billion. 

Strong flows, combined with a rebound in global markets, drove the third largest single-month dollar gain in the industry's history.

International equities was the standout asset class for the month, capturing nearly half of all inflows at $2.6 billion – reflecting strong performance across global markets. 

Australian equities and fixed income followed in second and third place respectively.

Market insights 

Hugh Lam, Betashares, Investment Strategist said despite the ongoing fallout from the Iran war, stock market indices staged a remarkable recovery in April buoyed by a still resilient global economy and renewed optimism around the AI hardware/memory theme. 

Following their Q1 2026 earnings results, US mega-cap hyperscalers are forecast to spend US$755 billion on capital expenditures this year. This has fuelled a massive memory supercycle, with markets like South Korea's KOSPI index having tripled over the last year due to its outsized exposure to memory chip manufacturers, Samsung and SK Hynix.

Mr Lam noted that the oil supply shock still presents downside risks to the global economy should the Strait of Hormuz remain closed for longer than anticipated. 

Structural themes that are either unaffected or bolstered by the Iran war include AI tech hardware, defence and energy security.

Top performing ASX ETFs in April

April's top performers skewed heavily toward growth and technology exposures, led by Nasdaq-linked strategies and strong gains in thematic equities.

Semiconductor and hydrogen ETFs featured prominently, reflecting continued momentum in AI-driven demand and clean energy optimism. 

The top performers in April were: 

• Global X Ultra Long Nasdaq 100 Hedge Fund (ASX: LNAS) rose 38%
• Global X Hydrogen ETF (ASX: HGEN) rose 35%
• Global X Semiconductor ETF (ASX: SEMI) climbed 30%. 

Inflows were largely focussed on international equities during April amidst volatility in the Australian market. 

The funds that received the most inflows during April were: 

• Vanguard Australian Shares Index ETF (ASX: VAS)
• Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF (ASX: VEU)
• Vanguard Msci Index International Shares ETF (ASX: VGS). 

The post Why Aussie investors are pouring into international ASX ETFs appeared first on The Motley Fool Australia.

Australia's benchmark index dipped again yesterday to start the week in the red. 

It is now down 2.5% over the last month. 

History tells us that we can expect annual returns of between 7% and 9% for the ASX 200 on an average year. 

However it's important to understand this isn't a consistent, year to year return. 

Some years the ASX 200 has rocketed almost 20%, like back in 2019. 

Meanwhile, other years it will drop over a 12 month period. 

This is why it's important for investors to geographically diversify their portfolio by also investing in equities outside Australia.

While certain Australian equities lag, companies in other countries are performing well. 

One way to do this is through ASX listed ETFs. 

Here are three funds that have raced past the ASX 200 this year

Global X Semiconductor ETF (ASX: SEMI)

This ASX ETF enjoyed a 5% gain yesterday, taking its year to date rise to 60%. 

The fund invests in companies that stand to potentially benefit from the broader adoption of tech-enabled devices that require semiconductors. This includes the development and manufacturing of semiconductors.

Semiconductors, essential for AI, are strategic assets due to their ability to control electricity and power modern electronics, likened to "brains and nerves" of devices.

Geographically, the companies that make up the fund are mostly from: 

• United States (66.55%)
• Taiwan (11.38%)
• Netherlands (8.30%). 

Betashares Capital – Asia Technology Tigers Etf (ASX: ASIA)

This ASX ETF tracks the performance of an index (before fees and expenses) comprising the 50 largest technology and online retail stocks in Asia (ex-Japan). 

ASIA ETF provides diversified exposure to a high-growth sector that is under-represented in the Australian sharemarket, and a complement to investors with U.S. technology exposure.

This fund is up an impressive 38% year to date. 

It is up more than 90% over the last 12 months.

iShares Msci Emerging Markets Ex China ETF (ASX: EMXC)

This ASX ETF aims to provide investors with the performance of the MSCI Emerging Markets ex China Index, before fees and expenses. 

The index is designed to measure the equity market performance in global emerging markets, excluding China.

It includes a large exposure to information technology and financials shares. 

Its top geographic exposure is to: 

• Taiwan (32.6%)
• South Korea (23.9%)
• India (15.4%). 

Since the start of 2026, the fund has risen more than 21%. 

The post 3 ASX ETFs that have raced ahead this year appeared first on The Motley Fool Australia.

It seems that the metals rout in January, and the global fuel crisis sparked by the war in Iran, has not dampened investors' enthusiasm.

Here are two ASX ETFs that are outperforming amid volatile market conditions in 2026.

Betashares Crude Oil Index Currency Hedged Complex ETF (ASX: OOO)

The ASX OOO is $9.59 apiece, up 1.1% today and up 88.4% in the year to date (YTD).

This ASX ETF has shot the lights out due to skyrocketing oil prices as a result of the Iran war and the shutdown of the Strait of Hormuz.

The world's benchmark oil price, Brent Crude, is now trading 78% higher in the YTD at US$109.38 per barrel today.

Meantime, West Texas Intermediate oil is up 68% in the YTD at US$97.46 per barrel on Tuesday.

This ASX ETF aims to track the S&P GSCI Crude Oil Index Excess Return, hedged against AUD/USD currency movements.

This gives investors exposure to WTI crude oil futures, rather than the spot price.

Betashares explains:

The price of oil futures contracts is not the same as the "spot price" of oil. As such, OOO does not aim to, and should not be expected to, provide the same return as the performance of this spot price.

The performance of an ETF that is linked to oil futures may be materially different to the performance of the spot price of oil itself.

This is because the process of "rolling" from one futures contract to the next to maintain investment exposure can result in either a cost or benefit to the Fund, affecting returns.

OOO ETF is backed by cash, which is held in bank accounts with a third-party custodian on behalf of investors.

Global X Semiconductor ETF (ASX: SEMI)

The ASX SEMI is $32.08 apiece, down 1% today and up 37% in the YTD.

This ASX ETF is riding the wave of the artificial intelligence (AI) revolution playing out worldwide today.

Semiconductors are essential for controlling electrical currents in devices like computer chips and smartphones.

They are especially critical for AI because they power the high-performance processors and memory needed to train and run advanced AI models quickly and efficiently.

SEMI ETF tracks the Solactive Global Semiconductor 30 Index. As the name suggests, there are just 30 shares within this index.

The world's biggest semiconductor manufacturer, Taiwan Semiconductor Manufacturing Company, and semiconductor designers Broadcom and Nvidia Corp are SEMI ETF's three largest holdings.

Together, they represent 27% of the ASX ETF's total investments.

This ASX ETF began trading in 2021 and has $773 million in funds under management today.

The post 2 ASX ETFs up 35% or more in 2026 appeared first on The Motley Fool Australia.

According to the report, the Australian market could grow to $380 billion in funds under management in 2026, up from about $320 billion last year and just $71 billion in 2020.

The rise of thematic investing

A significant shift that is contributing to this trend is the rise of thematic investing.

Traditionally, ASX ETFs were designed to track broad, diversified indexes like the S&P/ASX 200 Index (ASX: XJO) or S&P 500 Index (SP: .INX). 

However thematic funds focus on much more specific, niche sectors or "themes". 

This focus can bring amplified returns when these sectors outperform the broader market, as investors gain concentrated exposure to high-growth areas. 

These can be areas like clean energy, artificial intelligence, or cybersecurity. 

However, this same concentration also introduces higher volatility and risk, particularly if the theme falls out of favour or fails to deliver on expected growth. 

Exploring which thematic funds have outperformed can give great insight into the broader economic landscape as to which industries and sectors are outperforming. 

With that in mind, here are three of the best thematic ASX ETFs over the last three years. 

Global X Semiconductor ETF (ASX: SEMI)

This ASX ETF seeks to invest in companies that stand to potentially benefit from the broader adoption of tech-enabled devices that require semiconductors. This includes the development and manufacturing of semiconductors.

It has risen more than 232% in the last three years, driven by the explosion in artificial intelligence.

Semiconductors are a special type of material that can control electricity – sometimes it lets electricity flow, sometimes it blocks it.

Because of this property, semiconductors are the building blocks of modern electronics. They're used to make microchips, which power everything from your phone to cars to medical devices.

BetaShares Global Gold Miners ETF – Currency Hedged (ASX: MNRS)

This ASX ETF aims to track the performance of an index (before fees and expenses) that comprises the largest global gold mining companies (ex-Australia), hedged into Australian dollars.

In the last 3 years, it has risen more than 173%. 

It has risen over the past three years mainly because a strong bull run in gold prices boosted the profits of gold mining companies, whose earnings (and share prices) tend to increase faster than the underlying commodity.

VanEck Australian Banks ETF (ASX: MVB)

Put simply, this fund gives investors exposure to a portfolio of seven ASX-listed banks and financial institutions. 

This includes the big four banks. 

It has risen approximately 48% in the last three years, driven by high interest rates boosting bank profits, and solid dividend payouts attracting investors. 

The post 3 of the best performing thematic ASX ETFs over the last 3 years appeared first on The Motley Fool Australia.

AI adoption is scaling rapidly, and it is now being considered a structural growth theme in global equities.

Rising earnings and visible demand

According to the report, the investment in infrastructure required to build, train, and deploy AI systems at scale represents a multi-year capital cycle with visible demand, rising earnings, and strong competitive positions across the supply chain. 

The commercial applications for AI are broad: 

• automating software engineering
• improving ad targeting
• accelerating scientific research
• optimising supply chains
• transforming enterprise workflows. 

Deploying these systems at scale requires substantial infrastructure, spanning advanced semiconductors, hyperscale data centres, high-performance networking, and significant power generation capacity. 

The depth of this capital requirement, combined with the breadth of end-market demand, is what makes AI a structural rather than cyclical investment theme.

The pillars supporting AI infrastructure

Canaccord said that adoption and monetisation are accelerating. 

Data shows ChatGPT reached 900 million weekly active users in February 2026 – a 350% increase in 18 months. 

AI adoption has moved well beyond  early experimentation. Revenue has followed. Enterprise generative AI spending surged from approximately US$11.5 billion in 2024 to May-24 US$37 billion in 2025, a threefold increase.

At the same time, falling AI costs are accelerating demand and valuations have de-rated while earnings revisions remain positive. 

The pullback in AI-linked equities over the past six months has compressed valuations to levels where the market appears to be pricing in deceleration risk. 

What should investors be targeting?

Canaccord's preferred exposure is to AI semiconductors and capital equipment. 

It listed 6 stocks for AI themed exposure: 

• Amazon (NASDAQ: AMZN)
• ASML (NASDAQ: ASML)
• Broadcom (NASDAQ: AVGO)
• Microsoft (NASDAQ: MSFT)
• Nvidia (NASDAQ: NVDA)
• Taiwan Semiconductor Manufacturing (NYSE: TSM). 

NVIDIA dominates AI-training GPUs, Broadcom leads custom silicon design, TSMC fabricates the leading edge chips both depend on, and ASML holds a monopoly in the lithography systems underpinning advanced production. 

Amazon and Microsoft offer the largest and most profitable cloud platforms, where AI workloads are driving revenue reacceleration and backlog growth.

For investors looking to basket these companies together, Canaccord pointed towards the Global X Semiconductor ETF (ASX: SEMI). 

The report said SEMI is the most accessible option for Australian-based investors: ASX-listed in Australian dollars, across the 30 largest global semiconductor companies, with meaningful weight in TSMC, ASML, Nvidia, and Broadcom.

However it did note that no single ETF isolates the combination of semiconductors and selective hyperscalers from the report. 

The post How to invest in the AI Build-Out: Expert appeared first on The Motley Fool Australia.

Major technological shifts, from the expansion of the internet back to mass automobile production, highlight how early exposure to structural change can drive meaningful value creation.

Today, artificial intelligence (AI) and semiconductor infrastructure are shaping up as two of the most important themes of the next decade.

The challenge, however, is not recognising the trend — it is figuring out how to invest in it before the opportunity becomes obvious to everyone.

The rise of AI and semiconductor infrastructure

AI is no longer a niche concept. It is rapidly becoming embedded across industries, from healthcare and finance to logistics and defence.

Behind that shift sits an enormous infrastructure buildout.

Data centres are expanding. Cloud computing demand continues to rise. High-performance chips are becoming more critical with each new generation of AI models.

Semiconductors are effectively the "picks and shovels" of this transformation. Without them, AI simply does not function.

At the same time, the ecosystem is far broader than just chipmakers. It includes equipment suppliers, data centre operators, network providers, and unique part manufacturers.

That complexity is part of what makes the opportunity so compelling — and also what makes it difficult for investors to navigate.

Why picking winners can be harder than it looks

While it may be tempting to back a handful of individual companies, this approach comes with risks.

Even if an investor correctly identifies a leading player, there is no guarantee it will capture the majority of value over time.

Technology cycles can shift quickly. Competitive dynamics evolve. New entrants can disrupt incumbents.

In many cases, the biggest winners are not always the most obvious at the start.

That is one reason some investors are increasingly looking beyond individual stocks and toward broader exposure.

A different approach: Thematic ETFs

Exchange-traded funds (ETFs) offer a way to gain exposure to a theme rather than a single company.

Instead of trying to pick one or two winners, investors can access a diversified basket of businesses that are all positioned to benefit from the same structural trend.

Two ASX-listed ETFs that focus directly on this theme include:

• Global X AI Infrastructure ETF (ASX: AINF) – targets companies enabling AI through data centres, cloud infrastructure, and hardware
• Global X Semiconductor ETF (ASX: SEMI) – provides exposure to global semiconductor leaders, including chip designers, manufacturers, and equipment providers

These types of ETFs reflect the reality that AI is not just an endpoint use case story; it is also an infrastructure story.

They provide exposure across the value chain rather than relying on a single company to execute perfectly.

Where these ETFs can fit in a portfolio

For many investors, broad index ETFs remain the foundation of a portfolio. These provide exposure to the overall market and help manage risk through diversification.

Thematic ETFs, on the other hand, tend to play a different role.

They can be used as a satellite allocation — a smaller portion of a portfolio designed to target specific areas of potential growth.

In this context, an investor might allocate a portion of their capital to themes like AI infrastructure, while maintaining core holdings elsewhere.

This allows for targeted exposure without overcommitting to a single idea.

It also aligns with a broader strategy of building a portfolio over time, focusing on quality, diversification, and compounding.

The trade-offs to consider

While thematic ETFs offer clear advantages, they are not without trade-offs.

Because they are more focused, they can be more volatile than broad market funds. They may also become crowded if investor enthusiasm runs ahead of fundamentals.

And importantly, not every theme will deliver the returns investors expect.

However, for investors who believe AI and semiconductors could remain at the centre of global growth, the question may not be whether to gain exposure, but how.

Foolish Takeaway

AI and semiconductor infrastructure are already reshaping industries and attracting enormous global investment.

For those looking to participate without picking individual winners, ETFs like AINF and SEMI offer a simple, diversified entry point.

Used thoughtfully within a broader portfolio, they may provide exposure to one of the most powerful investment themes of the coming decade before it becomes fully priced in.

The post As AI spending accelerates these ASX ETFs could help you tap into the boom appeared first on The Motley Fool Australia.