VanEck Fabless Semiconductor ETF

SMHX

Market cap $289M

VanEck Fabless Semiconductor ETF (SMHX) offers concentrated exposure to capital-light semiconductor developers positioned for multi-tiered growth cycles. SMHX benefits from surging data center investment, AI-driven chip demand, and cyclical upswing in analog and microcontroller segments. Purpose-built chips and analog sector M&A activity provide additional growth catalysts, with SMHX poised for market-beating returns.

The top-performing non-leveraged ETFs of 2026 span a distinct blend of digital assets, next-generation semiconductor technology, and localized international equity plays. For advisors assessing portfolio allocations heading into the second half of the year, these performance figures highlight a sustained risk-on appetite among investors.

Semiconductor ETFs like SOXX offer broad exposure as AI-driven memory revenues are projected to nearly triple in 2026.

Several years ago, semiconductor ETFs were often viewed as a Nvidia (NVDA) story. With Nvidia driving much of the group's growth and performance, some investors questioned the need for broader exposure.

Launched on August 27, 2024, the VanEck Fabless Semiconductor ETF (SMHX) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Semiconductors segment of the equity market.

NEW YORK--(BUSINESS WIRE)--VanEck announced today the 2025 annual distributions per share for its VanEck equity exchange-traded funds.

VanEck's Fabless Semiconductor ETF has delivered sector-leading returns. It has larger weights in the top 3 providers of AI compute engines (NVIDIA, Broadcom, & AMD) than its sister fund SMH. SMHX focuses on fabless semiconductor companies that benefit from an asset-light business model by outsourcing chip fabrication to specialized foundries. The fabless/foundry partnership enables cost-efficiency and innovation, though reliance on dominant foundries like TSMC has increased.

Right now ahead of Halloween, the real suspense might be in ETF investing strategies. With markets seesawing between hopes for rate cuts and the resilience of earnings, investors are dusting off one of Wall Street's spooky old sayings:  Sell in May and go away.

AI hyperscaler capex is set to nearly triple to $1.4T by 2027, fueling a multi-year demand wave for semiconductors and infrastructure. Top AI ETFs - SMH, XSD, SOXX, WTAI and SMHX - offer diversified or targeted exposure to leading beneficiaries of the AI infrastructure buildout. All five highlighted ETFs earn Buy Quant ratings, with strong momentum, low expenses, and high liquidity, making them attractive for both short- and long-term investors.

VanEck's product manager Nicholas Frasse joins CNBC's Contessa Brewer to talk about how fabless semiconductor companies are the innovation engine of the AI revolution. By outsourcing manufacturing, they avoid billions in factory costs and can focus entirely on design, R&D and attracting top engineers.