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Should You Invest in the VanEck Fabless Semiconductor ETF (SMHX)?
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Launched on August 27, 2024, the VanEck Fabless Semiconductor ETF (SMHX - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Semiconductors segment of the equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Semiconductors is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by Van Eck. It has amassed assets over $201.2 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Semiconductors segment of the equity market. SMHX seeks to match the performance of the MARKETVECTOR US LSTD FABLS SEMICNDCTR ID before fees and expenses.
The MarketVector US Listed Fabless Semiconductor Index is a thematic index tracking the performance of US-listed companies that specialize in the semiconductor industry and operate as fabless semiconductor companies.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.35%, making it one of the least expensive products in the space.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector -- about 100% of the portfolio.
Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 21.27% of total assets, followed by Broadcom Inc (AVGO) and Monolithic Power Systems Inc (MPWR).
The top 10 holdings account for about 69.3% of total assets under management.
Performance and Risk
Year-to-date, the VanEck Fabless Semiconductor ETF has added about 33.42% so far, and it's up approximately 113.9% over the last 12 months (as of 04/28/2026). SMHX has traded between $23.59 and $51.93 in this past 52-week period.
The ETF has a beta of 1.68 and standard deviation of 38.58% for the trailing three-year period. With about 24 holdings, it has more concentrated exposure than peers.
Alternatives
VanEck Fabless Semiconductor ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SMHX is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
iShares Semiconductor ETF (SOXX) tracks PHLX SOX Semiconductor Sector Index and the VanEck Semiconductor ETF (SMH) tracks MVIS US Listed Semiconductor 25 Index. iShares Semiconductor ETF has $29.13 billion in assets, VanEck Semiconductor ETF has $58.36 billion. SOXX has an expense ratio of 0.34%, and SMH charges 0.35%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the VanEck Fabless Semiconductor ETF (SMHX)?
Launched on August 27, 2024, the VanEck Fabless Semiconductor ETF (SMHX - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Semiconductors segment of the equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Semiconductors is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by Van Eck. It has amassed assets over $201.2 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Semiconductors segment of the equity market. SMHX seeks to match the performance of the MARKETVECTOR US LSTD FABLS SEMICNDCTR ID before fees and expenses.
The MarketVector US Listed Fabless Semiconductor Index is a thematic index tracking the performance of US-listed companies that specialize in the semiconductor industry and operate as fabless semiconductor companies.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.35%, making it one of the least expensive products in the space.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector -- about 100% of the portfolio.
Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 21.27% of total assets, followed by Broadcom Inc (AVGO) and Monolithic Power Systems Inc (MPWR).The top 10 holdings account for about 69.3% of total assets under management.
Performance and Risk
Year-to-date, the VanEck Fabless Semiconductor ETF has added about 33.42% so far, and it's up approximately 113.9% over the last 12 months (as of 04/28/2026). SMHX has traded between $23.59 and $51.93 in this past 52-week period.
The ETF has a beta of 1.68 and standard deviation of 38.58% for the trailing three-year period. With about 24 holdings, it has more concentrated exposure than peers.
Alternatives
VanEck Fabless Semiconductor ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SMHX is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
iShares Semiconductor ETF (SOXX) tracks PHLX SOX Semiconductor Sector Index and the VanEck Semiconductor ETF (SMH) tracks MVIS US Listed Semiconductor 25 Index. iShares Semiconductor ETF has $29.13 billion in assets, VanEck Semiconductor ETF has $58.36 billion. SOXX has an expense ratio of 0.34%, and SMH charges 0.35%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.