The VanEck Semiconductor ETF (SMH) traces its roots to 2000 and today allocates across 26 chip manufacturers, with the top two positions—Nvidia and Taiwan Semiconductor—representing roughly 20% and 11% of assets respectively. The remaining 24 holdings each account for less than 10% of the portfolio but include industry leaders such as Broadcom, ASML, Micron and AMD. By concentrating on semiconductor names rather than a broad market index, SMH offers targeted exposure to companies driving artificial intelligence growth, though it carries greater volatility than a diversified S&P 500 fund.

SMH charges an annual management fee of 0.35%, below the 0.44% average for actively managed funds, translating to $35 in fees per $10,000 invested. Over the past decade, the ETF delivered average annualized returns of nearly 31%, outperforming the Nasdaq-100 tracker’s 19% annualized gain over the same period. Investors should be prepared for drawdowns—2022 saw a 34% decline—but the fund has recorded more positive years than negative, including a 49% advance in 2025.

In the third quarter, Geneos Wealth Management reduced its SMH stake by 55.4%, selling 3,460 shares for proceeds of about $909,000. Other institutions were more bullish: AE Wealth Management added 31,089 shares in Q2 (up 168.8% to 49,509 total), Farther Finance Advisors boosted its position by 136.2% to 10,450 shares, and Allspring Global Investments increased its holdings by 13% to 3,469 shares. SMH also distributes an annual dividend that equates to a 31% yield based on its most recent payment of $1.1047 per share to holders of record on December 22.