VanEck Semiconductor ETF

VanEck Semiconductor ETF (SMH) is one of the largest and most established semiconductor-focused exchange-traded funds, tracing its roots back to 2000 and managed by Van Eck Associates Corporation. It offers investors concentrated access to the companies that design, manufacture, and supply equipment for semiconductor chips, the foundational hardware behind modern computing and artificial intelligence.

What does VanEck Semiconductor ETF track? 

SMH tracks the MVIS US Listed Semiconductor 25 Index, which is designed to measure the overall performance of US-exchange-listed companies involved in semiconductor production and equipment, including both domestic and foreign companies listed on US exchanges. The index favours the largest, most liquid companies in the industry and is rebalanced on a regular schedule, generally semi-annually and quarterly depending on the period.

What does VanEck Semiconductor ETF hold?

The portfolio is concentrated in companies operating across semiconductor manufacturing and semiconductor equipment and materials, covering the full value chain from chip design and fabrication to the specialised machinery used to produce chips. This includes exposure to memory, logic, and analog chipmakers as well as the equipment suppliers that serve them, giving the fund a comprehensive view of the global semiconductor supply chain rather than a narrow sub-segment.

VanEck Semiconductor ETF Investment strategy

SMH employs a passive, full-replication strategy, normally investing at least 80% of its assets in the securities that comprise its benchmark index in order to track the price and yield performance of the MVIS index as closely as possible. Because the index methodology favours industry leaders and the most liquid listed names, the fund's strategy results in a relatively concentrated, top-heavy portfolio where the largest holdings can represent a substantial share of total assets.