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VanEck Fabless Semiconductor ETF(SMHX)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for SMHX
11/06/2026: SMHX (1-star) is currently NOT-A-BUY. Pass it for now.
The VanEck Fabless Semiconductor ETF (SMHX) offers targeted exposure to companies that focus exclusively on semiconductor design, outsourcing fabrication to third parties. By excluding traditional manufacturing plants, the fund focuses on high-margin innovation-led firms, making it a powerful tool for growth-oriented investors. Its main strengths include a precise sector focus and alignment with the secular shift toward fabless production, though it carries risks related to sector concentration and cyclical market volatility. Investors should monitor global semiconductor supply chain shifts and consumer demand for high-tech hardware as key performance drivers. It is best suited for those seeking a concentrated growth play rather than a core, diversified portfolio holding.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
ETF holdings, costs, diversification, valuation, risks, and market conditions provide supporting context about the fund.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Strong fit | The fund captures high-growth companies that are at the forefront of technological innovation and chip design. |
| Momentum investor | Strong fit while signal remains positive | Semiconductor stocks often exhibit strong momentum, making this a potentially high-alpha play during market uptrends. |
| Value investor | Weak fit | Semiconductor design firms often trade at high price-to-earnings multiples, making them less suitable for traditional value strategies. |
| Dividend/Income investor | Weak fit | The portfolio focuses on capital appreciation and innovation rather than dividend distribution. |
| Low-risk investor | Weak fit | The semiconductor sector is notoriously volatile and subject to cyclical downturns. |
Investor Profile
Ideal Investor Profile
The ideal investor is a growth-oriented individual who understands the semiconductor design cycle and is specifically seeking to isolate the design business model from capital-intensive manufacturing operations.
Suitability
SMHX is most suitable for long-term investors looking for thematic sector tilt or active traders looking to capitalize on semiconductor industry trends.
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Volatility | High | The fund is subject to significant price swings due to the cyclical and innovation-driven nature of the tech sector. |
| Market risk | High | Broader economic downturns can significantly impact the consumer demand for electronics that utilize these chips. |
| Concentration | High | The fund is heavily concentrated in a single industry, leading to specific sector risks. |
| Tracking/expense | Low | The passive management structure generally keeps tracking error minimal. |
| Liquidity | Medium | Lower trading volumes compared to larger competitors may lead to slightly wider spreads during exit. |
| Business/sector quality | Medium | While firms are generally high quality, they are highly sensitive to R&D spending and supply chain shifts. |
Risk Analysis
Volatility
SMHX exhibits high historical volatility consistent with high-beta technology stocks and the cyclical semiconductor industry.
Market Risk
The fund is highly sensitive to broad market sentiment, particularly regarding interest rates and demand for technology hardware.
What the ETF Owns
| Exposure Type | Exposure | Weight (%) | Retail Investor Read |
|---|---|---|---|
| Industry | Fabless Semiconductor Companies (e.g., NVIDIA, Broadcom, AMD, Qualcomm) | 98.5 | This provides concentrated exposure to the high-growth, high-margin design side of the semiconductor value chain. |
| Cash/collateral | Cash and Cash Equivalents | 1.5 | A small cash buffer is maintained for daily liquidity and operational requirements. |
Analysis of Past Performance
Type ETF | Historic Profit 58.58% | Avg. Invested days 49 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  3.0 | ETF Returns Performance  5.0 |
| Profits based on simulation | Last Close 11/06/2026 |
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