VanEck’s semiconductor ETF in Europe tops $150m in assets

Feb 24th, 2021 | By | Category: Equities

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Less than three months after its introduction, the European domiciled VanEck Vectors Semiconductor UCITS ETF has amassed more than $150 million in assets.

VanEck’s newly launched semiconductor ETF in Europe tops $150m in assets

VanEck’s newly launched semiconductor UCITS ETF has surpassed $150m in assets.

The fund, which was launched on 1 December 2020, provides pure-play exposure to semiconductor manufacturers and related companies integral to chip production.

It is Europe’s only ETF to specifically target companies such as Nvidia, Intel, AMD, Qualcomm, Texas Instruments, Broadcom, and ASML.

The fund is listed on London Stock Exchange (SMH LN / SMGB LN), Xetra (VVSM GY), SIX Swiss Exchange (SMHV SW), and Borsa Italiana (SMH IM), and offers a UCITS-compliant alternative to the highly popular and liquid VanEck Vectors Semiconductor ETF (SMH US) listed on Nasdaq.

The US-domiciled SMH is home to more than $5 billion in assets.

The European fund is referenced to the MVIS US Listed Semiconductor 10% Capped Index, an index composed of US-listed companies with market capitalizations above $150 million that derive at least 50% of their revenue from the production of semiconductors and semiconductor equipment.

Constituents are weighted by market capitalization subject to a cap of 10%. The index is rebalanced on a semi-annual basis and there are currently 25 constituents.

Martijn Rozemuller, Head of Europe at VanEck, commented: “The impressive and rapid growth of the ETF demonstrates the high demand on the investor side for investment opportunities in semiconductor companies. We had already had many enquiries about the US version of our semiconductor ETF in the past. By developing the UCITS variant, we also wanted to respond to this and offer our clients in Europe the opportunity to invest in the performance of companies in the semiconductor industry.”

Rozemuller added: “Semiconductors play an increasingly important role in the modern, digital economy. Almost all sectors are now directly or indirectly dependent on advanced computer technology. Technologies such as robotics, cloud computing, autonomous driving, and artificial intelligence demonstrate the growing need for powerful microchips, which in a sense are the nervous system of our technology today.”

The fund has a total expense ratio of 0.35%. Income is capitalized.

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