In the landscape of technology investments, it might be worthwhile to aim for some fields that still have volatility but great potential, such as semiconductors. Why not let the semiconductor ETF become your next point of interest?

When it comes to semiconductors, there is a star ETF that has outperformed the market average over the past five years, and that is the iShares Semiconductor ETF. This fund primarily focuses on leading companies in the semiconductor sector, including the most influential chip manufacturers. Moreover, it has performed better than many popular stocks—rising over 130%, while the S&P 500 index only rose 82% during the same period. However, despite its remarkable past gains, is it still suitable for long-term investment moving forward?

Let's take a look at its composition. The iShares Semiconductor ETF is not overly diversified; its investment objective is clear, which is to allocate funds to semiconductor design, distribution, and manufacturing companies in the United States. This way, investors can access several stocks that may benefit from the AI boom through this fund. For example, AMMD, Nvidia, and Broadcom are all major holdings within the fund. While risk-averse investors may hesitate due to its concentrated holdings, if your goal is to focus on leading companies in the semiconductor industry, this ETF is definitely worth considering.

Let's talk about risks: investments related to the technology sector are always subject to cycles of significant ups and downs. Nowadays, due to the market heat brought by AI, many stocks are at high levels. If AI-related spending slows down, the market may face adjustment risks. Considering that this ETF is trading at a price-to-earnings ratio of 36 times—far higher than the average of 25 times for the S&P 500—investors need to be mentally prepared for potential volatility. Over the past three years, the fund's volatility factor has been 1.6, which means its market volatility is significantly higher than the overall market. If you don't like the ups and downs, you may need to think carefully.

Should you include this ETF in your investment portfolio? If you are a growth-oriented investor looking to tap into leading semiconductor stocks through the AI boom, then this ETF might be a good choice. Its 0.34% expense ratio is not high, and it offers access to technology stocks with significant growth potential. However, the risks of short-term volatility and adjustments still exist, especially as the fervor and investment in AI gradually cool down.

If you can accept this uncertainty and are prepared to hold long-term, then this ETF could be a solid choice. As companies increasingly integrate AI into their products and services, the growth potential for chip stocks is tremendous. Even if there may be some bumps along the way, as long as you are willing to stick it out for several years, this investment may not disappoint you.

Regardless, remember that this is for informational purposes; past performance does not guarantee future results. In short, long-term investments require caution, but if the strategy is right, the future in the semiconductor field presents significant opportunities.