Also, many investing novices likely want to profit from artificial intelligence<\/a> (AI). Still, rather than buying individual chip stocks<\/a> like Nvidia, some may want to invest in a cross section of the semiconductor industry<\/a> by buying the VanEck Semiconductor ETF (SMH<\/a> +2.70%), and here’s why.<\/p>\n Image source: Getty Images.<\/p>\n Understanding the VanEck ETF<\/p>\n The VanEck Semiconductor ETF has existed since 2011 and invests almost all of its capital in 26 chip stocks. This makes it riskier than an S&P 500<\/a> fund, which includes 500 companies across numerous industries.<\/p>\n Nonetheless, tech-focused investors willing to take on the increased risk will likely be pleased by what they see in the VanEck ETF. Around 20% of the fund is in Nvidia, and it invests just under 11% of its assets in Taiwan Semiconductor.<\/p>\n The other 24 holdings each make up less than 10%, though they are some of the most recognized names in the industry. Broadcom, ASML, Micron, and AMD are among its top holdings.<\/p>\n Moreover, the fund is an excellent compromise between earnings returns and managing risk. You’re unlikely to see returns comparable to the 1,500% gain in Nvidia since the fall of 2022. Still, the fund helps offset underperformers like On Semiconductor, which lost ground over the same time frame.<\/p>\n Fund costs and returns<\/p>\n Also, because this is an ETF, it comes with an expense ratio<\/a>, which covers the cost of managing the fund.<\/p>\n The VanEck fund has an expense ratio of 0.35%, meaning fundholders pay $35 in management fees for every $10,000 held in the fund. Considering that the average expense ratio is 0.44% for actively managed funds, its shareholders are arguably getting a bargain.<\/p>\n Investors are unlikely to complain about that expense ratio given the returns. Over the last 10 years, the fund’s returns have averaged almost 31% per year. This is far ahead of the Nasdaq-100<\/a> tracker, the Invesco QQQ Trust, which delivered average returns of just over 19% annually during the same time frame.<\/p>\n VanEck ETF Trust – VanEck Semiconductor ETF<\/p>\n Today’s Change<\/p>\n (2.70%) $10.24<\/p>\n Current Price<\/p>\n $389.22<\/p>\n Key Data Points<\/p>\n Day’s Range<\/p>\n $380.08 – $390.88<\/p>\n 52wk Range<\/p>\n $170.11 – $390.88<\/p>\n Volume<\/p>\n 6.5M<\/p>\n Investors will still need a long-term perspective because these are average returns. They should note that the VanEck ETF lost 34% of its value in 2022. This occurred as the bear market in 2022 wiped out much of the pandemic-driven gains over the previous two years.<\/p>\n Fortunately, the VanEck fund has experienced more years of positive returns than losses. Thus, gains like the 49% increase in 2025 should more than offset periods with losses. If investors stay in the fund for several years, they are likely to earn positive returns and stand a high probability of continuing to outperform the Nasdaq.<\/p>\n Investing in the VanEck Semiconductor ETF<\/p>\n Ultimately, the VanEck Semiconductor ETF offers the potential to earn market-beating returns in a way that manages risk and limits the potential for losses.<\/p>\n![\"An](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/01\/1768148408_265_.jpeg\"\/)
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