If you're interested in broad exposure to the Technology - Semiconductors segment of the equity market, look no further than the VanEck Fabless Semiconductor ETF (SMHX Quick QuoteSMHX - Free Report) , a passively managed exchange traded fund launched on August 27, 2024.

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 $249.84 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

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

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

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many 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 22.44% of total assets, followed by Broadcom Inc (AVGO) and Advanced Micro Devices Inc (AMD).

The top 10 holdings account for about 73.93% of total assets under management.

Performance and Risk

Year-to-date, the VanEck Fabless Semiconductor ETF has added about 46.38% so far, and it's up approximately 58.27% over the last 12 months (as of 09/01/2026). SMHX has traded between $34.61 and $67.86 in this past 52-week period.

The ETF has a beta of 2.45 and standard deviation of 40.88% 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 a great 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 $42.01 billion in assets, VanEck Semiconductor ETF has $68.08 billion. SOXX has an expense ratio of 0.33%, 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.