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VanEck Semiconductor ETF Beats S&P 500 in Eight of Ten Years

By Stocks Desk · · Updated 2026-09-21 04:52 UTC
A close-up view of a silicon wafer with a grid of square integrated circuits
Illustration: Tradingbird, based on a photo published by AOL.com

While SMH has outperformed the S&P 500 in eight of the last ten years with nearly 1,400% total returns, new analysis warns that its concentrated exposure to Nvidia and cyclical industry risks resulted in losses twice as deep as the market in 2018 and 2022. Despite a strong start to 2026, experts advise treating the ETF as a satellite holding rather than a replacement for broad market index funds to mitigate downside risk.

  • New data from fool.com reveals SMH is up roughly 59% in 2026, vastly outpacing the S&P 500’s 12% gain, while highlighting that the fund’s two losing years since 2016 saw losses approximately double the broader market. The report also notes that Nvidia currently represents about 23% of the fund’s assets, underscoring its heavy concentration in a single stock.

    Source: fool.com

  • SMH returned nearly 1,400% from 2016 to 2025, outperforming the S&P 500 in most years despite heavy losses in 2018 and 2022.

    Source: AOL.com
Based on reporting by AOL.com and fool.com, compiled by the Tradingbird desk.

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