News ASML dethrones Applied Materials, becomes world's largest fab tool maker: analyst

[Admin]

ASML's revenues in calendar 2023 are by $3 billion dollars higher than Applied Materials's revenue in 2023.

ASML dethrones Applied Materials, becomes world's largest fab tool maker: analyst : Read more

 

[DavidLejdar]

Now only if there were an ETF, which would bundle these companies.

I mean, technically there are already some. But as it is, ETFs are usually focused on a country, on a overall stock index, or on an area such as "semiconductors". That offers some diversification. But if I want to invest in stock of e.g. the named companies (as potential long-time high growers), then I end up with several ETFs, which are overlapping or too broad.

In example, Tokyo Electron Ltd. with an increase of +102.11% in one year, such has most weight in Nikkei 225 ETFs. And among Global Semiconductor ETFs, from what I know, the most weight is "only" 2.70%, with 79 other companies included (such as ASML at 8% weight, and Nvidia at 7.65%). Technically not a problem, to go also with such a savings plan, alongside i.e. ETF with higher weight of ASML. But then I end up with several ETFs, where e.g. Nvidia is partially present at around 10% each - which may be great, but if e.g. a rogue AI (of theirs) causes havoc in their networks (such as frying them), then that might drive their stock down quite quickly, and with it the value of several ETFs invested in.

Not meaning to overcomplicate it for newcomers. And there is also the option to invest in individual shares. And having e.g. ETF "Europe Technology", where ASML is about a third, and Nikkei 225 ETF, and such, that isn't necessarily a bad diversification. But just meaning to say, that if there is a confident forecast for continuous growth of a handful of companies, that an ETF based on that would seem a nice option.