5 Best Semiconductor ETFs

2. VanEck Semiconductor ETF (NASDAQ:SMH)

5 Year Performance as of August 31: 186.98%

Launched in December 2011, VanEck Semiconductor ETF (NASDAQ:SMH) aims to track the performance of the MVIS US Listed Semiconductor 25 Index, which takes into consideration companies engaged in semiconductor production and applications. As of August 30, the ETF holds total net assets worth $10.07 billion, while featuring an expense ratio of 0.35%. VanEck Semiconductor ETF (NASDAQ:SMH) is one of the best semiconductor ETFs. 

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the largest holdings for VanEck Semiconductor ETF (NASDAQ:SMH). Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a global manufacturer of integrated circuits and other semiconductor products. According to Insider Monkey’s second quarter database, 121 hedge funds were bullish on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), as opposed to 102 hedge funds from the last quarter.

Baron Emerging Markets Fund said this 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.”