Finding the best ETFs to invest in has become increasingly popular due to their diversification benefits and long-term growth potential. By consistently investing in suitable ETFs, you can put yourself on the path to financial freedom. 

The semiconductor industry has become a bedrock for innovation. Investing in this sector through ETFs could provide investors with significant outperformance compared to the broader market. Additionally, having exposure to up-and-coming midcap companies could be a strategic move to capitalize on their momentum. While past performance does not indicate future results, historical data has suggested that these ETFs have demonstrated robust growth potential.

Here are the best ETFs to invest in to become a millionaire in 20 years!

iShares Semiconductor ETF (SOXX)

iShares Semiconductor ETF (NASDAQ:SOXX) is a popular choice for investors seeking exposure to the semiconductor industry. This ETF tracks the ICE Semiconductor Index, which includes a broad range of companies involved in designing, manufacturing and distributing semiconductors. 

The iShares Semiconductor ETF is an ideal ETF that offers investors diversification within the semiconductor industry. Its net AUM is approximately $12.6 billion, primarily exposed to United States semiconductor companies. Additionally, the net expense ratio to own the ETF is 0.35%.

While the semiconductor industry can have boom and bust periods, it offers a strong possibility of outperformance in the long term. The ETF’s top 5 largest holdings include Nvidia, Broadcom, Qualcomm, Advanced Micro Devices and Micron. The ETF is up 19%, compared to the S&P 500, which has been rising by just 10%. While this is great news, investors should be focused on the long term growth potential. By approaching this ETF with a healthy mindset, SOXX remains one of the best ETFs to invest in. 

Invesco S&P MidCap Momentum ETF (XMMO)

Invesco S&P MidCap Momentum ETF (NYSEARCA:XMMO) focuses on mid-cap stocks within the S&P 500 that exhibit strong price momentum. Momentum investing is a strategy that involves buying strong performers’ stocks and selling the latter. 

XMMO’s unique approach to mid-cap investing has resulted in impressive returns over the years. The ETF has consistently outperformed the broader market, making it an attractive option for investors seeking growth potential. Presently, the net expense ratio to own the ETF is 0.34%. 

The ETF’s top 5 most significant holdings include Emcor Group, Lennox Corporation, Manhattan Associates, Owens Corning and XPO. These companies have contributed significantly to the ETF’s outperformance in 2024. With a relatively low P/E ratio of 22.60, the ETF still has room to outperform over the long term as inflation. This makes XMMO one of the top ETFs to invest to become a millionaire.

VanEck Semiconductor ETF (SMH)

VanEck Semiconductor ETF (NASDAQ:SMH) is another semiconductor ETF that seeks to track the performance of the MVIS US Listed Semiconductor 25 Index. SMH is one of the oldest and most well-established semiconductor ETFs in which to invest.

VanEck Semiconductor ETF has a much different asset allocation strategy than the iShares Semiconductor ETF. While the SOXX ETF includes a broader range of semiconductor players, SMH focuses on the largest players in the industry. This can be advantageous for investors who prefer to invest in more established companies with proven track records of consistent revenue, EPS and FCF growth. 

The ETF has a relatively cost-effective expense ratio of 0.35%. Additionally, the ETF has approximately $18.81 billion in total assets. Due to its holdings of established players, including Nvidia and Broadcom, the ETF has far outperformed the SOXX ETF, rising 32% YTD. The SMH ETF is a no-brainer buy for outsized returns if you remain bullish on the long-term tailwinds of artificial intelligence (AI), electric vehicles (EVs), IoT and 5G.

On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.