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Contents
A Glance at the Modern Economy
The global economy has been dramatically reshaped around computing, data, and artificial intelligence (AI). Companies like NVIDIA lead this grand transformation, with their stock prices reaching extravagant heights.
A Smart Investment Avenue
For those keen to invest in top chipmakers, Canada’s TSX offers a budget-friendly path. The Global X Artificial Intelligence Semiconductor Index ETF (TSX:CHPS) shines as the nation’s inaugural semiconductor exchange-traded fund (ETF). It is conveniently traded like a regular stock, providing exposure to the AI semiconductor value chain.
Understanding CHPS
Managed by Global X Investments Canada Inc., CHPS boasts net assets of $146.8 million as of November 2025. With each unit priced at $54.25, it’s witnessed a notable 42.2% rise year-to-date. Over the past three years, it has returned a rather pleasing 168.5%.
Sector and Geographic Exposure
CHPS is entirely focused on technology, aligning its resources with large global firms engaged in semiconductor design and manufacture. Its geographical spread spans the United States (69.7%), Taiwan (15.4%), the Netherlands (10.2%), and the United Kingdom (4.7%).
| Country | Exposure (%) |
|---|---|
| United States | 69.7 |
| Taiwan | 15.4 |
| Netherlands | 10.2 |
| United Kingdom | 4.7 |
The Risks and Rewards
Despite its alluring growth potential, the ETF carries a “high” risk rating. It often mirrors the ever-volatile high-growth tech sector. The TSX tech sector, as it stands, boasts a nearly 12% positive year-to-date return.
Notable Holdings
The ETF simplifies stock selection and risk management. Among its top stock holdings are giants contributing significantly to the tech and AI sectors:
- NVIDIA: Leading AI innovations, it holds a market cap of US$4.4 trillion with an 18.2% ETF exposure.
- Broadcom: Supplies essential semiconductor and infrastructure software to critical markets.
- Taiwan Semiconductor Manufacturing: Taiwan’s largest semiconductor manufacturer.
- Advanced Micro Devices: Specialists in CPUs and GPUs development.
- ASML Holdings: The sole supplier of EUV lithography machines.
- Qualcomm: Known for semiconductors and wireless innovations.
- Lam Research (NASDAQ:LRCX): A key player in wafer fabrication equipment.
Tax Considerations for Canadian Investors
Though none of CHPS’s holdings trade on the TSX, Canadian investors can strategically hold US stocks in their Registered Retirement Savings Plan (RRSP) to avoid the 15% foreign withholding tax. The ETF fits snugly as an eligible investment in an RRSP and a Tax-Free Savings Account (TFSA).
The Expert Conclusion
The philosophy here is simple: CHPS offers a way to own high-demand AI-focused stocks without the complexity of picking individual shares. Nevertheless, prospective buyers should be aware of potential risks.
Additional Considerations
Remember, The Motley Fool’s Stock Advisor Canada hasn’t recommended Horizons Global Semiconductor Index ETF. Their exclusive list of 15 top stocks significantly outperformed the market. For those curious, the list is available for subscribers — a potentially rewarding venture for the bold investor.
See the 15 Stocks.
Please note returns are as of November 2025. Read further at The Motley Fool Canada.
Fool contributor Christopher Liew holds no position in the stocks mentioned. The Motley Fool recommends several key companies, illustrating a thoughtful disclosure policy.
