VanEck Launches China Semiconductor ETF With 25 Firms, $98B State Fund
SMHC•VanEck launched a pure-play China semiconductor ETF tracking 25 chip and equipment firms under a rules-based MarketVector China Semiconductor 25 Index with quarterly rebalancing and position caps. The sector is backed by a $98 billion National IC Fund and record semiconductor equipment spending in 2025.
1. ETF Launch and Objectives
VanEck launched the China Semiconductor ETF on Nasdaq to provide investors direct, pure-play access to China’s domestic chip industry through a single, rules-based vehicle covering design, fabrication and equipment segments.
2. Index Composition and Criteria
The ETF tracks the MarketVector China Semiconductor 25 Index, holding 25 companies headquartered in China or Hong Kong that derive at least 50% of revenues from semiconductors or equipment, weighted by modified free-float market capitalization with position caps and quarterly rebalancing.
3. State Backing and Market Tailwinds
China’s domestic semiconductor build-out is underpinned by a $98 billion National IC Fund, procurement mandates for state bodies and a captive market, alongside record 2025 semiconductor equipment spending and momentum from U.S. export controls.
4. Complement to VanEck Franchise
SMHC complements VanEck’s existing semiconductor ETFs by filling a gap in China-focused strategies, offering exposure separate from U.S., Taiwanese and European incumbents and leveraging local policy and financial support.
