Since its 2011 inception, the VanEck Semiconductor ETF has concentrated nearly all capital in 26 leading chip manufacturers, allocating roughly 20% to Nvidia and just under 11% to Taiwan Semiconductor. The remaining holdings each represent less than 10% of assets and include Broadcom, ASML, Micron and AMD. Over the past decade, the fund has delivered average annual returns of almost 31%, comfortably outpacing the Nasdaq-100’s roughly 19% annualized gain. Investors should note that the ETF endured a 34% drawdown in 2022 during the broader technology sell-off but rebounded with a 49% increase in 2025, underscoring the importance of a multi-year holding period to smooth out volatility.

With an expense ratio of 0.35%, shareholders pay $35 in management fees per $10,000 invested, a meaningful discount to the 0.44% average for actively managed equity funds. The ETF also distributes an annual dividend that translated into a 31.0% yield in its most recent payout, based on the declared $1.1047 per-share distribution. This income component, combined with strong capital appreciation, positions the fund as an attractive vehicle for investors seeking exposure to artificial intelligence and semiconductor secular growth without the idiosyncratic risks of single-stock positions.

In the latest quarter, Geneos Wealth Management reduced its position in the semiconductor ETF by 55.4%, selling 3,460 shares and ending with 2,786 shares valued at approximately $909,000. Conversely, Allspring Global Investments boosted its stake by 13.0%, adding 400 shares, while Farther Finance Advisors more than doubled its holding with a 136.2% increase (6,026 shares). AE Wealth Management expanded by 168.8%, acquiring 31,089 additional shares, and new stakes were initiated by Advyzon Investment Management ($2.745 million) and Carter Financial Group ($1.072 million). The fund carries a market capitalization north of $41 billion, a price-to-earnings ratio near 34.8 and a beta around 1.5, reflecting above-average volatility relative to the broader market.