What is the symbol for the VanEck Semiconductor ETF?

The symbol for the VanEck Semiconductor ETF is SMH.

Is the VanEck semiconductor ETF a good investment?

VanEck Semiconductor ETF has certainly been a good investment over the years. It ranked as the best-performing ETF over the last 10 years (excluding leveraged ETFs), with a 23.5% annualized total return. The ETF could continue delivering strong returns in the future. It holds the top 25 U.S.-listed semiconductor stocks, with a higher allocation to the largest ones (led by AI chip giant Nvidia). Given the expected growth in semiconductor demand (especially for AI chips), leading companies should continue growing their revenue and earnings briskly. That should drive strong stock price appreciation and benefit this ETF as its value rises along with the global sector.

How to Buy VanEck Semiconductor ETF (SMH)

Q: How to buy VanEck Semiconductor ETF?

Anyone with a brokerage account can buy VanEck Semiconductor ETF. To purchase shares, you would open the order page at your brokerage account and fill out all the relevant information, including:The number of shares you want to buy or the amount you want to invest to purchase fractional sharesThe ticker (SMH for VanEck Semiconductor ETF)Order type (limit order or a market order)Double-check your order and then click submit to add this semiconductor ETF to your portfolio.

How to Invest in VanEck Semiconductor ETF (SMH)

By Matthew DiLallo – Updated Feb 27, 2026 at 1:19 PM EST | Fact-checked by Frank Bass

Key Points

The VanEck Semiconductor ETF allows you to easily invest in the top global semiconductor stocks.
The ETF tracks the MVIS US Listed Semiconductor 25 Index, which focuses on the largest semiconductor companies.
The semiconductor market is on track to exceed $1 trillion by 2030, indicating strong growth potential for semiconductor companies.

VanEck Semiconductor ETF (SMH -0.40%) enables investors to invest in the global semiconductor sector. Semiconductors (also known as chips or semis) are crucial for the modern world as they're in computers, smartphones, appliances, gaming hardware, and medical equipment. Specialized chips are also vital to new technologies, like artificial intelligence (AI).

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NASDAQ: SMH

VanEck ETF Trust - VanEck Semiconductor ETF

Today's Change

(-0.40%) $-2.20

Current Price

$543.96

Key Data Points

Day's Range

$527.87 - $553.34

52wk Range

$234.59 - $581.17

Volume

12M

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According to PwC, the global semiconductor market will reach more than $1 trillion by 2030, up from over $600 billion in 2024. This sector-focused exchange-traded fund (ETF) enables investors to zero in on this opportunity through a single fund investment.

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Exchange-Traded Fund (ETF)

An exchange-traded fund, or ETF, allows investors to buy many stocks or bonds at once.

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This guide will teach you everything you need to know about investing in the VanEck Semiconductor ETF and how to invest in ETFs for beginners.

What Is VanEck Semiconductor ETF?

VanEck Semiconductor ETF is a sector ETF focused on semiconductor stocks. It aims to track the performance of the MVIS US Listed Semiconductor 25 Index, which seeks to follow the overall performance of companies involved in semiconductor production and equipment.

It's the biggest ETF focused on semiconductor stocks based on assets under management (AUM) of $19 billion in mid-2025, nearly double the size of the next largest semiconductor-focused ETF. The index and this ETF track the most liquid companies in the industry based on their market capitalization and trading volumes.

Its methodology favors the largest companies in the sector, so it will assign a higher weighting to the biggest semiconductor stocks. It also holds domestic and U.S.-listed foreign companies, giving investors broader exposure to the global semiconductor market.

How to buy VanEck Semiconductor ETF

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the ETF: Enter the ticker "SMH" into the search bar to bring up the ETF's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Should you invest in VanEck Semiconductor ETF?

Investing is very personal. You should pick stocks and funds that align with your risk tolerance and return objectives; not every investment will be right for your situation. With that in mind, here are some reasons you might want to invest in VanEck Semiconductor ETF:

You're seeking a sector ETF focused on semiconductor stocks.
You want a growth-focused ETF or mutual fund with high return potential.
Adding this ETF would help diversify your portfolio by providing exposure to the technology and semiconductor sectors.
You don't need much dividend income.
You believe semiconductor stocks will outperform over the long term but don't want to be an active stock picker and manage a portfolio of stocks.

Here's why this ETF might not be right for you:

You're concerned about the fund's concentration at the top (its three largest holdings comprise more than 40% of its net assets).
You're seeking a fund offering broader diversification across the technology sector.
You'd like a lower-cost ETF.
You already own several technology or semiconductor stocks.
You're seeking a dividend ETF that offers a higher income yield.
You're closer to or in retirement and want lower-risk investments.

Does the VanEck Semiconductor ETF pay a dividend?

The VanEck Semiconductor ETF pays a dividend. In mid-2025, the fund had a dividend yield of about 0.6%, lower than the dividend yields of the S&P 500 index (1.4%) and Nasdaq-100 index (0.8%).

That low dividend yield is because many semiconductor companies prefer to retain most of their earnings to fund their continued expansion, like building additional semiconductor fabrication facilities. Meanwhile, if they return excess cash to investors, many semiconductor companies (and technology stocks, in general) prefer to use that money to repurchase shares rather than pay higher dividends.

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ETF Expense Ratio

Annual fee as a percentage of assets that an Exchange-Traded Fund charges investors for management and operational costs.

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At 0.35%, an investor would pay about $3.50 per year in management fees for every $1,000 invested in the VanEck Semiconductor ETF. For comparison, the fee would be only $1.90 per year for a lower-cost rival fund, like the Invesco PHLX Semiconductor ETF.

Historical performance of VanEck Semiconductor ETF

The semiconductor industry has grown briskly over the years as more products have added technological features. That has helped drive strong performance for semiconductor stocks and the ETFs that track them.

Here's a snapshot of the VanEck Semiconductor ETF's returns compared to its benchmark and the S&P 500:

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Data source: VanEck and YCharts.
Fund	1-Year	3-Year	5-Year	10-Year
VanEck Semiconductor ETF	-5.71%	17.04%	30.14%	23.90%
Benchmark (MVIS US Listed Semiconductor 25 Index)	-5.51%	17.19%	30.31%	23.98%
S&P 500	13.48%	11.25%	15.00%	10.44%

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The fund's performance over the past decade has been truly remarkable. As of mid-2025, it ranked as the best-performing ETF over the past 10 years (excluding leveraged ETFs). It was one of four semiconductor ETFs in the top 10 (almost all of which were technology ETFs).

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The bottom line

VanEck Semiconductor ETF is one of several sector ETFs focused specifically on semiconductor stocks. The fast-growing semiconductor sector has produced robust returns for investors (the ETF was the best-performing non-leveraged ETF over the last 10 years). With the semiconductor sector on track to continue growing rapidly, the fund certainly warrants consideration for your portfolio.

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FAQ

Investing in VanEck Semiconductor ETF FAQ

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

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@MatthewDiLallo

Matt DiLallo has positions in Broadcom and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Applied Materials, Nvidia, Qualcomm, Taiwan Semiconductor Manufacturing, and Texas Instruments. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.

How to Invest in VanEck Semiconductor ETF (SMH)

Key Points