The VanEck Semiconductor UCITS ETF (SMGB) is an Ireland-domiciled equity ETF managed by VanEck and traded in British pounds on the London Stock Exchange.

The fund seeks to track the MarketVector US Listed Semiconductor 10% Capped Screened Index, a benchmark composed of companies primarily involved in semiconductor production and the development of semiconductor-related equipment.

SMGB provides thematic exposure to the semiconductor industry through publicly traded companies directly involved in the semiconductor value chain. The fund follows a passive investment strategy and uses physical replication to track its benchmark. It operates under the UCITS framework and follows an accumulating income policy.

The MarketVector US Listed Semiconductor 10% Capped Screened Index focuses on companies considered pure-play participants in the industry. 

New constituents generally must derive at least 50% of their revenue from semiconductors or semiconductor equipment-related activities. The methodology also applies market capitalization and liquidity requirements, as well as screens related to certain business activities and ESG controversies.

Composition / Exposure Profile

SMGB is concentrated in the semiconductor industry and can include companies involved in activities such as:

• Semiconductor development and manufacturing.

• Chip and integrated circuit design.

• Semiconductor manufacturing equipment.

• Chip processing and fabrication.

• Components and technologies directly related to the semiconductor industry.

Semiconductors are used across areas such as artificial intelligence, data centers, cloud computing, vehicles, electronic devices, and industrial automation. However, benchmark selection is based on companies' involvement in semiconductors and semiconductor equipment rather than their exposure to specific end markets.

The portfolio can include both U.S. companies and companies headquartered in other countries whose eligible shares trade in the United States. As a result, the ETF provides international exposure to the semiconductor value chain while using a benchmark universe based on U.S.-listed securities.

Because the fund is concentrated in a single industry, its performance is closely linked to semiconductor market cycles. Changes in chip demand, global manufacturing capacity, inventories, investment in new fabrication facilities, and technological developments can affect portfolio companies.

Structure and Costs

The fund has the U.S. dollar as its base currency. On the London Stock Exchange, the GBP listing trades under the ticker SMGB, while the USD listing trades under SMH. The same fund also has other European listings, including VVSM on Deutsche Börse.

The ETF has a total expense ratio (TER) of 0.35% per year, uses physical replication, and is domiciled in Ireland under the UCITS framework. It is part of VanEck UCITS ETFs plc.

SMGB follows an accumulating income policy, meaning dividends and other income generated by portfolio companies are reinvested within the fund rather than distributed periodically to shareholders.

History and Evolution of the ETF

The VanEck Semiconductor UCITS ETF (SMGB) was launched in 2020 to provide exposure to the semiconductor industry through companies primarily involved in semiconductor production and the development of related equipment.

Since its launch, the fund has maintained a passive strategy focused on the global semiconductor industry, tracking eligible U.S.-listed companies while applying specific selection criteria and limits on individual constituent weights.

Its performance is linked to semiconductor industry cycles and factors including demand for computing capacity, investment in technology infrastructure, data center expansion, advances in artificial intelligence, electronic device production, and changes in global chip manufacturing capacity.

Additional Information

VanEck Semiconductor UCITS ETF (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $8.41 billion.

Over the past 12 months, VanEck Semiconductor UCITS ETF recorded a return of 99.16%, with its price trading between $54.88 and $139.66 during the same period.

The ETF is traded under the ticker SMGB.