5 Best Performing Technology ETFs in 2023

2. VanEck Semiconductor ETF (NASDAQ:SMH)

YTD Share Price Performance as of August 24: 52.68%

VanEck Semiconductor ETF (NASDAQ:SMH)’s goal is to imitate the price and yield results of the MVIS® US Listed Semiconductor 25 Index. This index is designed to monitor the collective performance of companies engaged in semiconductor manufacturing and equipment. VanEck Semiconductor ETF (NASDAQ:SMH) was founded on December 20, 2011. As of August 24, 2023, the total net assets of the fund stand at $9.63 billion, along with an expense ratio of 0.35%. It is one of the best performing ETFs in the tech space.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a prominent holding of VanEck Semiconductor ETF (NASDAQ:SMH). On July 20, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported a Q2 GAAP EPADR of $1.14 and a revenue of $15.68 billion, outperforming Wall Street estimates by $0.06 and $300 million, respectively. 

According to Insider Monkey’s second quarter database, 121 hedge funds were bullish on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), compared to 102 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the largest stakeholder of the company, with 9 million shares worth $914 million. 

Baron Emerging Markets Fund made the following comment about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its first quarter 2023 investor letter:

“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) contributed in the first quarter due to easing geopolitical concerns and expectations for end-demand recovery later in 2023. We retain conviction that Taiwan Semi’s technological leadership; pricing power; and exposure to secular growth markets, including high-performance computing, automotive, 5G, and IoT; will allow the company to sustain strong earnings growth over the next several years.”