Market Shares:

• Semiconductor manufacturing: approx. 70%
• Semiconductor equipment: approx. 20%
• Other technologies: approx. 10%

Top 3 Markets:

• USA: approx. 55%
• Taiwan: approx. 20%
• South Korea: approx. 15%

The VanEck Semiconductor ETF (SMH) mainly invests in companies from the semiconductor industry, with the majority of revenues coming from the manufacturing and sale of semiconductors and related equipment. The USA is the largest market, attributed to the dominance of American semiconductor companies. Taiwan and South Korea follow, as they are significant semiconductor production sites and home to some of the world's largest semiconductor manufacturers.

VanEck Semiconductor ETF is an exchange-traded fund (ETF) and not a company that produces physical products.

The VanEck Semiconductor ETF invests in a variety of companies within the semiconductor industry. These companies have their production facilities distributed worldwide, depending on their individual business strategies and production requirements. Typical production locations in the semiconductor industry include countries such as Taiwan, South Korea, the USA, and China, known for their advanced manufacturing capabilities.

The ETF itself does not have its own production facilities but holds shares in companies engaged in semiconductor production.

Current Status: No specific data available for 2025.
Estimation: Continuation of focus on the semiconductor sector and diversification (2023).

The VanEck Semiconductor ETF pursues a strategy that aims to invest in companies operating in the field of semiconductor production and development. This strategy is based on the assumption that the demand for semiconductors will continue to rise due to technological advancements and digitization.

Future growth is sought through diversification into various semiconductor companies worldwide. The ETF invests in a mix of established market leaders and innovative companies with potential for above-average growth. This enables the ETF to benefit from technological trends such as Artificial Intelligence, Internet of Things, and 5G.

Additionally, the ETF may adjust its strategy to respond to geopolitical developments and regulatory changes that could impact the semiconductor market.

Main raw materials: Silicon, copper, cobalt, rare earths

Main importing countries: China, Taiwan, South Korea, Japan

The VanEck Semiconductor ETF invests in companies operating in the semiconductor industry. These companies are heavily dependent on raw materials such as silicon, copper, cobalt, and rare earths, which are essential for the production of semiconductors and electronic components.

China and Taiwan are leading producers of silicon wafers and other semiconductor components. South Korea and Japan are also significant players in semiconductor production, supplying important materials and technologies.

The dependence on these countries is due to their advanced production capacities and the availability of raw materials required in semiconductor manufacturing. Therefore, the geopolitical relationships and trade agreements with these countries can have a significant impact on the supply chains of the companies in the ETF.

Market share: 10% (estimated, 2025)
Cost ratio: 0.35% (2025)
Performance compared to the sector: +8% above the sector average (2025)

The VanEck Semiconductor ETF (SMH) has a significant competitive advantage in the field of semiconductor ETFs. The ETF benefits from its broad diversification within the semiconductor industry and a focus on leading companies such as Taiwan Semiconductor Manufacturing Company (TSMC) and NVIDIA.

With a cost ratio of 0.35%, the ETF provides a cost-effective way for investors to invest in the semiconductor sector. This is particularly attractive in a market environment where cost efficiency is increasingly important.

In addition, the ETF's performance shows that it outperforms the sector average. This suggests that the ETF is well positioned to benefit from growth opportunities in the semiconductor industry, especially given the increasing demand for semiconductor products in various technology sectors.

Institutional Investor Share: Approx. 70% (estimated for 2025 based on historical trends)

Insider Buys/Sells: No significant insider transactions reported (2025)

The VanEck Semiconductor ETF (SMH) is very popular among institutional investors, reflected in a high share of around 70%. These investors appreciate the ETF for its diversification in the semiconductor sector and its performance.

Insider transactions are less relevant for ETFs like SMH, as it is a fund that tracks a variety of companies. Therefore, there are no significant insider buys or sells that would directly affect the ETF.

Market share of VanEck Semiconductor ETF (SMH): Estimated 10% in the semiconductor ETF segment (2025).

Main competitors and their market shares:

1. iShares PHLX Semiconductor ETF (SOXX): 12%
2. SPDR S&P Semiconductor ETF (XSD): 8%
3. Invesco Dynamic Semiconductors ETF (PSI): 6%
4. First Trust Nasdaq Semiconductor ETF (FTXL): 5%
5. Direxion Daily Semiconductor Bull 3X Shares (SOXL): 4%

The VanEck Semiconductor ETF (SMH) holds a significant market share in the semiconductor ETF space, but the iShares PHLX Semiconductor ETF (SOXX) is the leading provider. SMH's market share is strong but not dominant.

Moat Analysis:

SMH's moat mainly lies in its diversification and broad coverage of the semiconductor sector. The ETF provides access to a variety of leading semiconductor companies, which helps spread the risk for investors. This can be seen as an advantage as it enables stable performance in a volatile market environment.

Compared to its competitors, SMH does not have a significant technological or cost advantage. ETFs like SOXX and XSD offer similar diversification benefits and sometimes have a stronger brand presence or lower cost structures.

Overall, SMH's moat is solid but not unique. The competition offers comparable products, and the competitive advantage lies more in the specific composition and fee structures of the ETFs.

Market share of the semiconductor industry: 20% growth (2024)

Technological innovations: Strong focus on AI and 5G

Demand forecast: Sustained high demand for semiconductor products until 2030

The VanEck Semiconductor ETF (SMH) invests in companies in the semiconductor industry, which are considered the backbone of modern technologies such as Artificial Intelligence (AI), 5G, and the Internet of Things (IoT). The semiconductor industry has experienced strong growth in recent years, with a projected market share growth of 20% in 2024.

The demand for semiconductors remains high due to advancing digitalization and the proliferation of new technologies. Companies within this ETF benefit from the increasing demand for more powerful and efficient chips.

In addition, technological innovations in areas such as AI and 5G are further driving growth. These trends suggest that the VanEck Semiconductor ETF represents an attractive investment opportunity for investors looking to benefit from the long-term development of the semiconductor industry.

Dividend Yield: 1.2% (estimated for 2025)
Payout Frequency: Quarterly

The VanEck Semiconductor ETF (SMH) regularly pays dividends, typically on a quarterly basis. The dividend yield is around 1.2%, based on the latest available data and typical payouts in the semiconductor industry.

The reliability of the payout heavily depends on the performance of the companies included in the ETF, most of which come from the semiconductor sector. This sector is known for its volatility but also for long-term growth potential. Historically, the ETF has consistently paid its dividends, but the amount can fluctuate depending on market conditions.