AI ETF NASDAQ: SMH VanEck

VanEck Semiconductor ETF (SMH)

The semiconductor ETF that leads with TSMC and NVIDIA. A different chip bet than SOXX.

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✓ Reviewed by AI Decoded Editorial Team Updated March 2026

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Key Fund Stats

0.35%

Expense Ratio

Annual fee charged by the fund

$22.1B

Assets Under Management

Total fund AUM as of March 2026

Holdings

Number of positions in the fund

2011

Inception Year

Year the fund launched

-13.8%

YTD Return

Year-to-date performance (March 2026)

+10.2%

1-Year Return

Trailing 12-month performance

5/5

AI Exposure Score

Maximum AI exposure — core AI holdings.

⚡⚡⚡⚡⚡

⚡ About AI Exposure Score: Reflects how heavily this ETF tilts toward AI and automation revenue. 5 = nearly all holdings are AI-driven. 1 = AI is a minor theme. Editorial assessment — not a buy/sell signal.

What is SMH?

SMH and SOXX are often compared, but they're meaningfully different funds. SMH gives heavier weight to TSMC (Taiwan Semiconductor) — the world's most critical chip manufacturer and the company actually fabricating NVIDIA's AI GPUs, Apple's M-series chips, and AMD's processors.

With only 26 holdings and larger TSMC + NVIDIA positions, SMH is a more concentrated, higher-conviction semiconductor bet. If you believe the AI chip foundry supply chain is the critical bottleneck, SMH's TSMC overweight vs SOXX is a meaningful strategic difference.

Top 5 Holdings

Holding	Weight
TSMC	14.4%
NVIDIA Corp	13.1%
Broadcom Inc	7.8%
ASML Holding	6.9%
AMD	5.8%

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Upcoming Catalysts

TSMC at 14.4% — highest concentration on the actual AI chip manufacturer vs design-only SOXX top holdings
ASML (6.9%) = monopoly on EUV lithography machines required for advanced chips
Larger AUM ($22B) than SOXX for a more concentrated fund — strong institutional demand signal
AI chip supply chain (TSMC + NVIDIA + ASML) directly exposed to hyperscaler CapEx

Key Risks

TSMC geopolitical risk — Taiwan Strait tension could cause extreme volatility
More concentrated than SOXX (26 vs 35 holdings) — higher single-name risk
China export controls impact ASML and NVIDIA within fund

Compare with Similar ETFs

SOXX — The semiconductor benchmark. Every chip powering the AI revolution.
QQQ — The benchmark. 101 Nasdaq-100 companies, half of which are AI plays.

Sources: VanEck ETF page (March 2026), ETF.com

⚠️ Not financial advice. ETF data is for informational purposes only. Expense ratios, holdings, and returns change — verify current data on the fund issuer's website before investing. Past performance does not guarantee future results.