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SMH - ETF AI Analysis
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VanEck Semiconductor ETF (SMH)
Rating:74Outperform
Price Target:―
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered impressive gains this year, reflecting strength in the semiconductor sector.
Top Holdings Driving Growth
Several key holdings, like AMD and Micron, have shown strong performance, contributing positively to the fund’s returns.
Reasonable Expense Ratio
The ETF charges a competitive fee, making it cost-effective compared to many actively managed funds.
Negative Factors
Sector Over-Concentration
The fund is heavily focused on the technology sector, which increases vulnerability to downturns in the semiconductor industry.
Geographic Concentration Risk
Nearly all of the ETF’s exposure is tied to U.S. companies, limiting diversification across global markets.
High Concentration in Nvidia
Nvidia makes up a significant portion of the portfolio, exposing investors to risks tied to the performance of a single company.
SMH vs. SPDR S&P 500 ETF (SPY)
AUM34.17B
RegionGlobal
Expense Ratio0.35%
Beta1.96
IssuerVanEck
Inception DateMay 05, 2000
Dividend Yield0.31%
Asset ClassEquity
Index TrackedMVIS US Listed Semiconductor 25
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume11,284,484
30 Day Avg. Volume8,801,264
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
409.02Price Target Upside― Downside
Rating ConsensusStrong Buy
Number of Analyst Covering26
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SMH Summary
The VanEck Semiconductor ETF (SMH) is an investment fund focused on the semiconductor industry, a key part of the technology sector. It includes leading companies like Nvidia and TSMC, which produce essential components for electronics, computers, and advanced technologies like AI and 5G. This ETF is ideal for investors looking to benefit from the growth of the tech industry and the increasing demand for semiconductors. However, since it focuses solely on one sector, its value can fluctuate significantly with changes in the tech market.
How much will it cost me?The VanEck Semiconductor ETF (SMH) has an expense ratio of 0.35%, meaning you’ll pay $3.50 per year for every $1,000 invested. This is slightly higher than the average for ETFs because it is a sector-focused fund that requires more active management to track the semiconductor industry. However, it may be worth it for investors seeking targeted exposure to this fast-growing sector.
What would affect this ETF?The VanEck Semiconductor ETF (SMH) could benefit from increasing demand for semiconductors driven by advancements in AI, cloud computing, and electric vehicles, as well as global digital transformation trends. However, it may face challenges from geopolitical tensions affecting key players like TSMC, regulatory changes, or economic slowdowns that reduce consumer and corporate spending on technology. Interest rate hikes could also impact growth-oriented companies within the ETF's portfolio.
SMH Top 10 Holdings
The VanEck Semiconductor ETF (SMH) is riding the wave of the semiconductor boom, with a heavy concentration in tech giants like Nvidia and TSMC, which are benefiting from their leadership in AI and advanced chip technologies. Nvidia has shown mixed momentum recently, with strong long-term growth prospects but some short-term headwinds. Meanwhile, TSMC and Broadcom are steady performers, bolstered by their focus on AI and infrastructure. Micron and Lam Research are rising stars, delivering robust gains thanks to their strategic investments in AI and data centers. However, laggards like AMD and Intel are holding back the fund slightly, as valuation concerns and profitability challenges weigh on their performance. With nearly all its holdings in the semiconductor sector, this ETF is a pure play on the global demand for cutting-edge tech.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Nvidia | 18.15% | $6.31B | $4.38T | 33.19% | 76 Outperform | |
| TSMC | 9.64% | $3.35B | $1.19T | 60.03% | 81 Outperform | |
| Broadcom | 9.01% | $3.13B | $1.88T | 148.99% | 76 Outperform | |
| Micron | 6.35% | $2.21B | $258.46B | 134.48% | 75 Outperform | |
| Advanced Micro Devices | 5.94% | $2.07B | $348.79B | 57.25% | 74 Outperform | |
| Applied Materials | 5.61% | $1.95B | $199.14B | 45.91% | 75 Outperform | |
| Lam Research | 5.56% | $1.93B | $194.86B | 116.77% | 77 Outperform | |
| ASML Holding | 5.49% | $1.91B | $403.20B | 55.26% | 81 Outperform | |
| Intel | 5.40% | $1.88B | $175.58B | 55.64% | 56 Neutral | |
| KLA | 4.79% | $1.67B | $152.29B | 83.36% | 79 Outperform |
SMH Technical Analysis
Positive
―
Price Trends
341.31
Positive
317.20
Positive
275.68
Positive
Market Momentum
-1.64
Positive
52.98
Neutral
71.79
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SMH, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 347.53, equal to the 50-day MA of 341.31, and equal to the 200-day MA of 275.68, indicating a bullish trend. The MACD of -1.64 indicates Positive momentum. The RSI at 52.98 is Neutral, neither overbought nor oversold. The STOCH value of 71.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMH.
SMH Peer Comparison
Comparison Results
Performance Comparison
SMH
VanEck Semiconductor ETF
347.71
106.65
44.24%
CIBR
First Trust NASDAQ Cybersecurity ETF
―
―
―
IXN
iShares Global Tech ETF
―
―
―
TDIV
First Trust NASDAQ Technology Dividend Index Fund
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―
―
QTUM
Defiance Quantum ETF
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―
―
CHPS
Xtrackers Semiconductor Select Equity ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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