The VanEck Semiconductor ETF (SMH) is designed to replicate the performance of the MVIS® US Listed Semiconductor 25 Index, providing investors with exposure to the semiconductor sector by tracking the overall performance of companies involved in semiconductor production and equipment.

As of February 7, 2025, SMH is trading at $245.00, reflecting a 1.36% decrease from the previous close.

Top Holdings:

As of February 6, 2025, SMH’s top holdings include:

  • NVIDIA Corporation (NVDA): 18.25%
  • Taiwan Semiconductor Manufacturing Company Limited (TSM): 12.96%
  • Broadcom Inc. (AVGO): 9.83%
  • ASML Holding N.V. (ASML): 5.11%
  • Applied Materials, Inc. (AMAT): 4.75%

These top five holdings constitute approximately 50.9% of the ETF’s total assets, indicating a significant concentration in a few leading companies within the semiconductor industry.

Dividend Information:

SMH has a dividend yield of 0.44%, with an annual dividend of $1.07 per share. The most recent ex-dividend date was December 23, 2024.

Analyst Outlook:

Analysts maintain a “Strong Buy” consensus for SMH, with an average 12-month price target of $300.85, suggesting a potential upside of approximately 22.8% from the current price. The highest price target is $371.46, while the lowest is $235.42.

Recent Performance and Market Sentiment:

In 2024, semiconductor stocks, particularly those related to artificial intelligence (AI), experienced significant growth. The VanEck Semiconductor ETF (SMH) saw a year-to-date increase of 43.60% as of December 24, 2024. Analysts anticipate continued strong AI spending on training and inferencing, driven by companies like Nvidia. This trend is expected to benefit semiconductor companies involved in AI applications. citeturn0news10

Conclusion:

SMH offers investors targeted exposure to the semiconductor sector, encompassing industry leaders poised to benefit from ongoing technological advancements, particularly in AI. While the ETF provides growth potential, investors should be mindful of its concentrated holdings and the inherent volatility of the semiconductor industry. As always, it’s advisable to consider individual investment objectives and risk tolerance when evaluating this ETF.