VOO Doesn't Hold SpaceX, Taiwan Semiconductor, Samsung Electronics, SK Hynix, or ASML. Meet the Vanguard ETF That Does.
2026-10-10 20:31
•Daniel Foelber •The Motley Fool
•••• •••••• Axe Cap view
Voices missing from VOO’s AI story: VT’s edge for South African investors
South Africans eyeing AI should note VOO misses key chipmakers, while Vanguard’s VT ETF covers them and global tech risks more evenly.
VOO’s focus on the S&P 500 means it excludes major semiconductor leaders like Taiwan Semiconductor (TSMC), SK Hynix, and ASML—companies critical to AI chip supply chains. For South African investors, this matters because exposure to these global nodes of AI innovation offers crucial diversification beyond US-centric tech. VT, the Vanguard Total World Stock ETF, picks up many of these global giants while keeping fees low at 0.06%. Although VT may feel more complex for beginners, it offers a cleaner hedge against a weaker rand by owning assets linked to the broader tech sector beyond what’s listed on the New York exchange. Given that South Africa’s local tech exposures like Naspers and Prosus often hinge on global internet trends, complementary overseas tech plays in VT make sense. The risk: currency swings in USD/ZAR can still hurt returns and VT is less liquid than VOO. But if AI and semiconductors truly reshape economies, VT is a better fit. this is just our opinion and not financial advice
I’d watch the rand closely and add VT on weakness to get global AI chip exposure alongside local tech counters like Prosus. Avoid VOO if you want to capture AI beyond pure US large caps.
- Vanguard Total World Stock ETF (VT)
- USD/ZAR
- Rand depreciation eroding offshore returns
- Liquidity risk compared to VOO
6/10
The Vanguard S&P 500 ETF (VOO) excludes major AI-related semiconductor companies like SpaceX, Taiwan Semiconductor, Samsung Electronics, SK Hynix, and ASML due to S&P 500 inclusion rules requiring 12 months of public trading. The Vanguard Total World Stock ETF (VT) offers broader global diversification with exposure to these international semiconductor leaders at a comparable 0.06% expense ratio, making it potentially more attractive for investors seeking AI chip exposure.
Our take is based on reporting first published by The Motley Fool.