Average Daily Volume
8.29M
Fund Overview
The VanEck Semiconductor ETF (SMH) is an exchange-traded fund that provides targeted exposure to the semiconductor industry. It tracks the MVIS US Listed Semiconductor 25 Index, which includes the 25 largest and most liquid U.S.-listed companies involved in semiconductor production and equipment. These companies span the entire semiconductor ecosystem, from chip designers like NVIDIA to manufacturers such as Taiwan Semiconductor Manufacturing Company (TSMC). SMH offers investors a convenient way to gain diversified exposure to this high-growth sector, which is foundational to modern technology, including computing, telecommunications, and artificial intelligence. The fund is rebalanced quarterly and uses a modified market-cap weighting methodology, with individual holdings capped at 20% to mitigate concentration risk.
- Asset Class
-
Equity
- Industry
-
Semiconductors
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 0.60 %
- Currency Hedged
-
No
- Portfolio Turnover
-
15 %
- Dividend Date
-
Why Invest in the SMH ETF?
Potential Benefits
- Provides concentrated exposure to the semiconductor industry, a key driver of technological innovation.
- Offers diversification across 25 leading semiconductor companies, reducing single-stock risk.
- Historically strong performance due to the sector's growth potential and increasing global demand for chips.
- Liquidity is high, with tight bid-ask spreads, making it easy to trade.
- Competitive expense ratio compared to other sector-specific ETFs.
- Quarterly rebalancing helps maintain an up-to-date portfolio reflective of current market conditions.
Potential Risks
- High volatility due to the cyclical nature of the semiconductor industry.
- Concentration risk, as the fund is heavily weighted toward a few large players like NVIDIA and TSMC.
- Sensitive to global supply chain disruptions, trade policies, and geopolitical tensions (e.g., U.S.-China relations).
- Vulnerable to rapid technological changes that could render certain chip designs obsolete.
- Performance is closely tied to the broader tech sector, which can be prone to sharp corrections.
- Currency risk for non-U.S. holdings, as many semiconductor companies operate globally.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+12.0%
|
+0.7%
|
-5.7%
|
+32.2%
|
+18.2%
|
+9.5%
|
-17.6%
|
+3.0%
|
+9.4%
|
+3.5%
|
-
|
-
|
| 2025 |
+0.6%
|
-4.5%
|
-9.2%
|
-0.1%
|
+13.5%
|
+16.3%
|
+3.5%
|
+0.5%
|
+12.4%
|
+11.2%
|
-3.0%
|
+2.5%
|
| 2024 |
+6.3%
|
+14.0%
|
+6.2%
|
-4.8%
|
+12.3%
|
+8.4%
|
-5.3%
|
-1.4%
|
+0.8%
|
-1.5%
|
+0.2%
|
+0.4%
|
| 2023 |
+16.8%
|
+1.0%
|
+9.9%
|
-6.1%
|
+16.7%
|
+5.5%
|
+5.5%
|
-2.7%
|
-7.2%
|
-4.2%
|
+15.5%
|
+9.6%
|
| 2022 |
-10.8%
|
-2.6%
|
+0.6%
|
-14.8%
|
+6.4%
|
-16.7%
|
+16.4%
|
-9.5%
|
-13.7%
|
+2.2%
|
+20.4%
|
-9.9%
|
| 2021 |
+3.7%
|
+6.3%
|
+1.1%
|
-0.2%
|
+2.5%
|
+5.2%
|
+0.3%
|
+2.9%
|
-5.4%
|
+6.8%
|
+11.4%
|
+1.8%
|
| 2020 |
-2.7%
|
-4.1%
|
-11.2%
|
+14.2%
|
+5.5%
|
+8.3%
|
+8.8%
|
+5.5%
|
-0.7%
|
+0.4%
|
+19.2%
|
+5.4%
|
| 2019 |
+10.7%
|
+7.0%
|
+2.9%
|
+9.3%
|
-15.5%
|
+12.2%
|
+6.3%
|
-2.3%
|
+4.1%
|
+7.0%
|
+4.3%
|
+8.0%
|
| 2018 |
+8.9%
|
0.0%
|
-2.1%
|
-6.8%
|
+10.3%
|
-4.2%
|
+3.1%
|
+2.9%
|
-2.3%
|
-12.2%
|
+3.5%
|
-8.0%
|
| 2017 |
+3.9%
|
+2.6%
|
+4.3%
|
0.0%
|
+7.9%
|
-4.8%
|
+4.9%
|
+3.2%
|
+5.4%
|
+8.9%
|
-1.3%
|
-1.1%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
NVDA
|
NVIDIA CORP |
20.4 % |
|
TSM
|
TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD ADR |
11.1 % |
|
AVGO
|
BROADCOM INC |
8.5 % |
|
ASML
|
ASML HOLDING NV ADR |
5.2 % |
|
QCOM
|
QUALCOMM INC |
5.0 % |
|
AMAT
|
APPLIED MATERIALS INC |
4.8 % |
|
TXN
|
TEXAS INSTRUMENTS INC |
4.6 % |
|
KLAC
|
KLA CORP |
4.5 % |
|
ADI
|
ANALOG DEVICES INC |
4.4 % |
|
AMD
|
ADVANCED MICRO DEVICES INC |
4.3 % |
Top 10 holdings shown, out of 26 total holdings.
Related ETFs: SMH vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
SMH tracks the MVIS US Listed Semiconductor 25 Index, which selects the 25 largest and most liquid U.S.-listed companies engaged in semiconductor production, equipment, and related services. The index employs a modified market-cap weighting methodology, with individual holdings capped at 20% to prevent excessive concentration. The fund holds common stocks of these companies and is rebalanced quarterly to ensure alignment with the index. Unlike actively managed funds, SMH does not attempt to outperform the semiconductor sector but instead seeks to replicate its performance with high fidelity.
Frequently Asked Questions
What types of companies are included in SMH?
SMH includes companies involved in semiconductor design, manufacturing, and equipment, such as NVIDIA, TSMC, Intel, and ASML.
How often is SMH rebalanced?
SMH is rebalanced quarterly to align with its underlying index, the MVIS US Listed Semiconductor 25 Index.
Is SMH a good long-term investment?
SMH can be a strong long-term holding for investors bullish on the semiconductor industry, but its cyclical nature means it may experience significant volatility.
Does SMH pay dividends?
Yes, SMH pays dividends, though yields are typically modest as semiconductor companies often reinvest profits into growth and R&D.
How does SMH differ from broad tech ETFs like XLK?
SMH is narrowly focused on semiconductors, whereas XLK provides diversified exposure to the broader technology sector, including software, hardware, and IT services.
Industry Overview
The semiconductor industry is a critical component of the global economy, powering everything from smartphones and data centers to electric vehicles and AI systems. The VanEck Semiconductor ETF (SMH) offers investors exposure to this high-growth sector, which benefits from long-term trends like 5G adoption, cloud computing expansion, and the Internet of Things (IoT). However, the industry is also cyclical, with periods of oversupply and undersupply impacting profitability. Geopolitical factors, such as export controls and domestic manufacturing incentives (e.g., the U.S. CHIPS Act), further influence the sector's dynamics. SMH provides a way to invest in this essential but volatile industry without picking individual stocks.
Alternative Comparison
Compared to its closest peer, the iShares Semiconductor ETF (SOXX), SMH has a slightly lower expense ratio and a more concentrated portfolio (25 holdings vs. SOXX's 30). Both funds are heavily weighted toward NVIDIA and TSMC, but SMH's stricter capping mechanism may reduce single-stock risk. Another alternative, the Invesco PHLX Semiconductor ETF (SOXQ), uses an equal-weighting approach, which can reduce concentration risk but may underperform during periods when large-cap semiconductor stocks dominate. SMH's focus on liquidity and its quarterly rebalancing make it a strong choice for investors seeking pure-play semiconductor exposure.
Issuer Overview
VanEck is a well-established asset manager known for its thematic and sector-specific ETFs. The firm has a strong track record in managing funds that provide targeted exposure to niche markets, including commodities, emerging markets, and disruptive technologies. VanEck's expertise in the semiconductor space is reflected in SMH's construction and management, which aims to deliver precise exposure to the sector while maintaining liquidity and cost efficiency.
Conclusion
The VanEck Semiconductor ETF (SMH) is a compelling option for investors looking to capitalize on the growth of the semiconductor industry. Its focused portfolio, competitive fees, and liquidity make it a standout in the sector. However, the inherent volatility and cyclicality of the semiconductor market mean that SMH is best suited for those with a higher risk tolerance and a long-term investment horizon. As with any sector-specific ETF, diversification across other asset classes is recommended to mitigate risk.
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