"The VanEck Semiconductor ETF (SMH) trades near $510 after returning roughly 141% over the past year against the S&P 500's 29%. That gap is the entire reason this fund exists in a portfolio: it concentrates exposure to a small group of companies that capture an outsized share of the value created by AI, advanced computing, and digital infrastructure."
"SMH is a focused bet on the global semiconductor supply chain. The fund tracks the MVIS US Listed Semiconductor 25 Index, which holds roughly 25 of the largest chip designers, foundries, and equipment makers listed in the U.S. In practice, that means heavy weights in NVIDIA, Taiwan Semiconductor, Broadcom, ASML, and a handful of others."
"The Information sector has grown from 5.4% of GDP in early 2024 to 5.6% in Q4 2025, with growth accelerating to 3.2% in Q3 2025 before settling at 2.5%. Semiconductors are the input layer for that expansion."
The VanEck Semiconductor ETF (SMH) has achieved a remarkable 141% return over the past year, significantly outperforming the S&P 500's 29%. SMH focuses on the semiconductor supply chain, tracking the MVIS US Listed Semiconductor 25 Index, which includes major companies like NVIDIA and Taiwan Semiconductor. The fund benefits from earnings growth driven by demand for technology products. However, it is also susceptible to sharp declines during downturns. Over five years, SMH returned 332.46%, while the S&P 500 returned 72.69%. The macroeconomic environment supports semiconductor growth.
Read at 24/7 Wall St.
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