The VanEck Semiconductor ETF (SMH) was launched on 12/20/2011, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Semiconductors segment of the equity market.
Semiconductor stocks benefit from AI wave, boosted by large tech firms. Nvidia leads in the semiconductor market, but other companies like TSMC, Broadcom, and Qualcomm also have bright prospects. SMH ETF dominates peers in performance and assets managed, with potential for continued growth due to AI and data center infrastructure demand.
The sharp selloffs some sectors have been seeing relative to the broader market could be a sign of underlying weakness, but Janney analyst Dan Wantrobski says they are actually presenting near-term buying opportunities.
Semiconductor companies are thriving this year as demand for artificial intelligence (AI) continued rising. Nvidia (NASDAQ: NVDA) stock has gone bonkers, giving it a valuation of about $3 trillion while Broadcom is valued at over $700 billion.
VanEck Semiconductor ETF invests in the semiconductor sector. That level of focus can increase investment risk by limiting diversification.
The chip sector bounced back from a down April to notch double-digit gains in May. The strong performance was driven by Nvidia and Qualcomm, each of which had earnings that impressed.
VanEck Semiconductor ETF SMH is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 84.3% from its 52-week low price of $136.10/share.
A Biden administration official on Tuesday urged technology companies and other U.S. sectors to put more effort into keeping their products out of the hands of Russia's military.
Shares of Nvidia (NVDA) rallied in Wednesday's after-hours session after the semiconductor giant unveiled financial guidance that hints at the artificial intelligence (AI) boom still being in its early innings. Clearly, that supports semiconductor exchange traded funds that de facto Nvidia proxies, including the VanEck Semiconductor ETF (SMH).
For investors seeking momentum, VanEck Vectors Semiconductor ETF SMH is probably on the radar. The fund just hit a 52-week high and is up 76.2% from its 52-week low of $136.10 per share.
VanEck Semiconductor ETF is a preferable choice over iShares Semiconductor ETF (SOXX) due to its superior performance and selection methodology. SMH consistently outperforms SOXX, with a year-to-date surge of 33% compared to SOXX's 19% rise. SMH's methodology, which allows companies to grow without constraints until they reach a 20% cap, is more sensible and effective than SOXX's capping system.