Semiconductor ETF Surges 54% YTD Without Holding Intel
The VanEck Fabless Semiconductor ETF (SMHX) has gained 54.22% year-to-date through July 2, 2026, despite holding zero shares of Intel. The fund invests exclusively in fabless semiconductor companies, such as Nvidia and Qualcomm, which design chips but outsource manufacturing.
Key Numbers
The VanEck Fabless Semiconductor ETF (SMHX) has posted an impressive 54.22% year-to-date return through July 2, 2026, according to 24/7 Wall St. The fund's mandate excludes Intel (INTC) entirely, focusing instead on fabless chip designers that outsource manufacturing.
Fund Details
SMHX invests in companies that design semiconductors but do not own fabrication plants, such as Nvidia (NVDA) and Qualcomm (QCOM). This asset-light model allows these firms to focus on innovation and design without the heavy capital expenditure of manufacturing.
Context
While SMHX surged over 54%, traditional semiconductor stocks have struggled. Intel's stock fell 38% over the same period. The divergence reflects investor preference for companies benefiting from AI and cloud computing demand.
What It Means for Investors
SMHX offers concentrated exposure to fabless chip designers, which may continue to outperform vertically integrated peers like Intel as AI applications drive growth.
Frequently Asked Questions
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