SMHX - ETF AI Analysis

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VanEck Fabless Semiconductor ETF (SMHX)

Rating:73Outperform

Price Target:―

SMHX, the VanEck Fabless Semiconductor ETF, earns a solid overall rating thanks to large positions in leaders like Nvidia and Broadcom, which benefit from strong financial performance and powerful growth drivers in AI and data centers. Other key holdings such as Qualcomm, Cadence Design, Marvell, and Rambus further support the fund’s quality with robust earnings and positive outlooks, though many of these stocks share a common risk of high valuations and some overbought or bearish technical signals. The main risk factor is the fund’s heavy concentration in a single, highly valued sector—fabless semiconductor and AI-related chip companies—which can make it more sensitive to market swings and changes in growth expectations.

Positive Factors

Focused Exposure to Fabless Chip Leaders

The ETF holds many well-known semiconductor design companies, giving investors targeted access to a key growth area in technology.

Several Strongly Performing Holdings

Some mid-sized positions like Synopsys, AMD, Astera Labs, Monolithic Power, and Rambus have shown strong year-to-date performance, helping support the fund’s overall returns.

Moderate Expense Ratio

The fund’s expense ratio is reasonable for a specialized, niche ETF, allowing investors to access a focused semiconductor strategy without very high ongoing costs.

Negative Factors

High Concentration in a Few Stocks

A large portion of the portfolio is tied up in a small number of names like Nvidia and Broadcom, which increases the impact of any weakness in these companies.

Single-Sector Risk

With all its exposure in the technology sector, the ETF is highly sensitive to downturns in the semiconductor industry.

Limited Geographic Diversification

The fund is effectively fully invested in U.S.-listed companies, offering little protection if the U.S. market or U.S. chipmakers face specific headwinds.

SMHX vs. SPDR S&P 500 ETF (SPY)

AUM148.35M

RegionNorth America

Expense Ratio0.35%

Beta1.97

IssuerVanEck

Inception DateAug 27, 2024

Dividend Yield0.02%

Asset ClassEquity

Index TrackedMarketVector US Listed Fabless Semiconductor Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume78,259

30 Day Avg. Volume85,690

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

51.39

Price Target Upside― Downside

Rating ConsensusStrong Buy

Number of Analyst Covering22

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

SMHX Summary

The VanEck Fabless Semiconductor ETF (SMHX) tracks the MarketVector US Listed Fabless Semiconductor Index, focusing on chip designers that create semiconductor technology but outsource manufacturing. It holds well-known companies like Nvidia and Broadcom, which supply key chips used in smartphones, data centers, AI, and 5G. Someone might invest in SMHX to seek growth from rising demand for advanced chips while spreading risk across many leading chip designers. However, this ETF is heavily focused on the semiconductor and tech sector, so its price can be very volatile and can drop sharply if chip stocks fall.

How much will it cost me?The VanEck Fabless Semiconductor ETF (SMHX) has an expense ratio of 0.35%, which means you’ll pay $3.50 per year for every $1,000 invested. This is slightly higher than average because it is a sector-focused ETF, which often requires more specialized management compared to broad-market index funds. However, it provides targeted exposure to the innovative fabless semiconductor industry.

What would affect this ETF?The VanEck Fabless Semiconductor ETF (SMHX) could benefit from growing demand for advanced technologies like AI, 5G, and IoT, which rely heavily on innovative semiconductor designs. However, it may face challenges from rising interest rates, which can impact growth-focused companies, and potential geopolitical tensions or regulatory changes affecting the U.S. technology sector. With top holdings like Nvidia and Broadcom, the ETF is well-positioned to capitalize on industry innovation but remains sensitive to broader economic and trade conditions.

SMHX Top 10 Holdings

SMHX is a pure play on U.S.-listed fabless chip designers, with Nvidia clearly in the driver’s seat and Broadcom riding shotgun. Nvidia’s continued strength in AI and data centers is giving the fund much of its lift, while Broadcom’s more mixed recent stretch keeps it from adding as much spark. Monolithic Power has been a quiet standout, rising steadily and adding welcome balance. On the flip side, AMD and design software names like Synopsys have been lagging, reminding investors that even in a hot sector, not every chip is firing at once.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
NVDA	Nvidia	21.56%	$32.39M	$4.38T	48.15%	76 Outperform
AVGO	Broadcom	12.86%	$19.32M	$1.53T	64.75%	76 Outperform
MPWR	Monolithic Power	5.32%	$7.98M	$51.70B	73.68%	75 Outperform
AMD	Advanced Micro Devices	4.80%	$7.21M	$315.31B	91.53%	73 Outperform
SNPS	Synopsys	4.77%	$7.16M	$79.04B	-7.53%	73 Outperform
MRVL	Marvell	4.70%	$7.06M	$76.82B	27.81%	76 Outperform
RMBS	Rambus	4.35%	$6.54M	$10.13B	72.72%	78 Outperform
CDNS	Cadence Design	4.20%	$6.31M	$78.26B	16.00%	78 Outperform
ARM	ARM Holdings PLC ADR	4.05%	$6.08M	$122.93B	-1.86%	69 Neutral
QCOM	Qualcomm	3.92%	$5.88M	$138.52B	-17.09%	80 Outperform

SMHX Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

39.04

Negative

100DMA

38.94

Negative

200DMA

36.58

Positive

Market Momentum

MACD

-0.46

Positive

RSI

45.99

Neutral

STOCH

44.83

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SMHX, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 38.57, equal to the 50-day MA of 39.04, and equal to the 200-day MA of 36.58, indicating a neutral trend. The MACD of -0.46 indicates Positive momentum. The RSI at 45.99 is Neutral, neither overbought nor oversold. The STOCH value of 44.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SMHX.

SMHX Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
SMHX	―	―	$148.35M	0.35%	73 Outperform
IETC	―	―	$730.05M	0.18%	74 Outperform
QQH	―	―	$660.78M	0.98%	62 Neutral
GTOP	―	―	$581.30M	0.65%	72 Outperform
CHPY	―	―	$436.07M	1.03%	73 Outperform
SHOC	―	―	$158.09M	0.40%	75 Outperform

Performance Comparison

SMHX

VanEck Fabless Semiconductor ETF

37.87

12.70

50.46%

IETC

iShares Evolved US Technology ETF

―

QQH

HCM Defender 100 Index ETF

―

GTOP

Goldman Sachs Technology Opportunities ETF

―

CHPY

YieldMax Semiconductor Portfolio Option Income ETF

―

SHOC

Strive U.S. Semiconductor ETF Strive U.S. Semiconductor ETF

―

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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