The VanEck Vectors Semiconductor ETF (SMH) is designed to replicate the MVIS US Listed Semiconductor 25 Index, which tracks the overall performance of companies involved in semiconductor production and equipment. Beyond that, SMH focuses on the most liquid companies in the industry based on market cap and trading volume, with a bias toward large, well-established semiconductor companies. It invests in both domestic and U.S. listed foreign companies.

SMH’s top holdings include Taiwan Semiconductor Manufacturing Co. (13.42%), Intel (11.80%), Nvidia (5.77%), Texas Instruments (5.19%), Asml Holding (5.11%), Lam Research (4.89%), Advanced Micro Devices (4.85%), Qualcomm (4.81%) Broadcom (4.70%) and Applied Material (4.53%). Companies in the United States makes up 74.77% of its portfolio, followed by Taiwan at 13/42% and the Netherlands at 9.55%. 

SMH’s expense ratio is 0.39% and it currently has about $1.6 billion in assets under management.


The most direct way to gain exposure to the holdings in SMH is to buy its listed shares. But there are a number of good reasons for investors to reconsider that approach. While SMH seeks to mirror the global semiconductor market, there are different weightings and investment approaches to this sector that might perform differently in different investment environments. Rather than buying SMH shares themselves, investors interested in a semiconductor ETF that’s weighted differently or takes a more global approach might consider buying funds that provide exposure to similar semiconductor firms. After all, the return drivers that will benefit SMH might also benefit other funds focused on the semiconductor space. 

Investing in SMH

A search on Magnifi suggests that investors can gain access to the semiconductor market via a number of different funds and other ETFs, including those shown below. 

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