SMHX

📎 Investment Objective

The VanEck Fabless Semiconductor ETF (SMHX) seeks to track the performance of the MVIS US Listed Semiconductor Manufacturers Index, which is intended to give investors exposure to companies involved in the design and development of semiconductors.

✨ Key Features

• Provides exposure to the fabless semiconductor industry, which focuses on the design and development of semiconductors rather than their manufacturing
• Diversified portfolio of companies involved in the semiconductor supply chain, including chip designers, IP providers, and semiconductor equipment manufacturers
• Low expense ratio of 0.00%
• Tracks the MVIS US Listed Semiconductor Manufacturers Index

⚠️ Primary Risks

• Concentration risk: The fund is heavily concentrated in the semiconductor industry, which can be subject to significant volatility and cyclicality
• Technology risk: The semiconductor industry is highly competitive and subject to rapid technological changes, which can impact the profitability and growth of companies in the sector
• Market risk: As an equity fund, the value of the ETF's shares can fluctuate with the overall stock market
• Liquidity risk: The ETF may have limited trading volume, which could impact its ability to be bought or sold at desired prices

👤 Best For

The VanEck Fabless Semiconductor ETF may be suitable for investors seeking exposure to the semiconductor industry and who have a higher risk tolerance. It may be particularly appealing to investors with a long-term investment horizon who are looking to gain diversified exposure to the design and development of semiconductors.