This Semiconductor ETF Is Up 58% This Year and Doesn't Own TSMC

The VanEck Fabless Semiconductor ETF (SMHX) is up 58.48% year-to-date through July 6, but notably does not hold any shares of the world’s largest chipmaker. The strong YTD performance suggests favorable investor positioning toward fabless semis, though the lack of exposure to the sector leader is a portfolio differentiation point rather than a company-specific catalyst.

Analysis

The VanEck Fabless Semiconductor ETF (SMHX) is up 58.48% year-to-date through July 6, but notably does not hold any shares of the world’s largest chipmaker. The strong YTD performance suggests favorable investor positioning toward fabless semis, though the lack of exposure to the sector leader is a portfolio differentiation point rather than a company-specific catalyst.