The memory boom has seen stocks like Micron (NASDAQ: MU) and Sandisk (NASDAQ: SNDK) produce generational returns in a single year.
Those two have delivered higher returns in a year than benchmarks like the S&P 500 and Nasdaq Composite have produced in more than a decade
You don’t have to try to guess which memory stocks will be the next big winners if you load up on the right technology-focused exchange-traded funds (ETFs) instead. These three artificial intelligence ETFs have outperformed the S&P 500 this year and look poised to ride the memory market’s tailwinds even higher. Roundhill Memory ETF The Roundhill Memory ETF (NYSEMKT: DRAM) is the best pure-play ETF for the memory chip boom.
It’s small, with only 21 holdings, and highly concentrated. Micron, Samsung (OTC: SSNLF), and SK Hynix (NASDAQ: SKHY) — which between them control 89% of the DRAM market and 98% of the high bandwidth memory (HBM) market — are the top three holdings, and they make up more than 70% of the entire ETF. Some investors may prefer to buy those three names individually instead of shelling out for the fund’s 0.65% expense ratio, but the Roundhill Memory ETF also contains a bunch of lesser-known memory stocks that operate outside of the U.S.