Forget the AI Chipmakers. For 0.47% This Fund Owns the Companies Building the Da

SMH owns zero physical infrastructure; PAVE fills that gap with 119 positions in power, steel, cooling, and rail companies building AI data centers.

PAVE has returned 132% over five years versus 73% for SPY, outpacing the broader market while capturing reshoring and infrastructure tailwinds.

Rate sensitivity is the real risk: the 10-year Treasury at 4.51% already pressures PAVE's construction and capex-heavy holdings.

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If you own VanEck Semiconductor ETF (NASDAQ:SMH) for AI exposure, you are betting on the same handful of chip designers everyone else holds. SMH is the default vehicle for the trade: a concentrated basket led by NVIDIA, Taiwan Semiconductor, and Broadcom that has produced the headline gains of the AI cycle. The case for owning it is straightforward and still mostly intact. The problem is what it leaves out. The hyperscalers' spending on those chips also needs land, steel, switchgear, transformers, cooling systems, and rail capacity, and SMH owns none of that. A different fund does, at a fee that is competitive with most thematic products on the market.

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/forget-ai-chipmakers-0-47-132345030.html)