VanEck Fabless Semiconductor ETF (SMHX)

Overview

VanEck Fabless Semiconductor ETF (FABL) focuses on investing in global companies primarily involved in the design and sale of semiconductors. It offers targeted exposure to fabless semiconductor companies, providing a focused approach to investing in this specialized segment of the technology sector. The fund aims to replicate as closely as possible, before fees and expenses, the MVISu00ae US Fabless Semiconductor Index.

Reputation and Reliability

VanEck has a solid reputation for offering specialized and niche ETFs with a focus on specific sectors and thematic investing.

Management Expertise

VanEck has a team of experienced investment professionals who specialize in managing sector-specific ETFs.

Goal

To replicate as closely as possible, before fees and expenses, the MVISu00ae US Fabless Semiconductor Index.

Investment Approach and Strategy

Strategy: The ETF tracks the MVISu00ae US Fabless Semiconductor Index, a rules-based index intended to track the overall performance of companies involved in the design and sale of semiconductors.

Composition The ETF primarily holds stocks of companies that design and sell semiconductors, excluding those that manufacture their own chips. The fund also holds cash or cash equivalents.

Market Share: FABL holds a significant portion of the market share amongst ETFs specializing exclusively in fabless semiconductors.

Total Net Assets (AUM): 136742390.81

Key Competitors

• SMH
• XSD
• SOXX

Competitive Landscape

The competitive landscape is dominated by broad semiconductor ETFs such as SMH and SOXX. FABL offers a more concentrated exposure to fabless semiconductor companies, which can lead to higher potential returns but also greater volatility compared to broader semiconductor ETFs. A disadvantage is the smaller AUM compared to its competitors.

Historical Performance: Historical financial performance data needs to be collected from financial data providers.

Benchmark Comparison: Benchmark comparison data needs to be collected from financial data providers.

Expense Ratio: 0.5

Average Trading Volume

FABL's average trading volume is moderate, which can affect the ease of buying and selling shares, especially for large orders.

Bid-Ask Spread

The bid-ask spread for FABL can vary but is generally reasonable, reflecting its liquidity.

Market Environment Factors

Economic indicators, sector growth in semiconductors, and current market conditions influence FABL's performance. The demand for semiconductors in various industries, technological advancements, and global trade policies can significantly affect the ETF.

Growth Trajectory

The growth trajectory is tied to the overall growth and innovation in the fabless semiconductor industry. Changes in strategy and holdings are actively managed to capture industry trends.

Competitive Edge

FABL offers a specialized focus on fabless semiconductor companies, distinguishing it from broader semiconductor ETFs. This targeted approach allows investors to capitalize on the growth of companies designing and selling semiconductors without the capital expenditure of manufacturing. This focused strategy allows the ETF to provide concentrated exposure. The ETF's index is also designed to be more representative of the fabless industry.

Volatility

FABL experiences a higher degree of volatility due to its focused exposure to the fabless semiconductor industry.

Market Risk

Market risk is associated with fluctuations in the semiconductor market and broader economic conditions, potentially affecting FABL's returns. Also, concentration risk is high due to the narrow focus on a single sector.

Ideal Investor Profile

The ideal investor is someone seeking targeted exposure to the fabless semiconductor industry, with a higher risk tolerance and a belief in the long-term growth potential of this sector.

Market Risk

FABL is more suited for investors who can tolerate higher volatility and have a longer-term investment horizon. It is not ideal for passive index followers looking for broad market exposure.

VanEck Fabless Semiconductor ETF (FABL) offers targeted exposure to the fabless semiconductor industry. Its focus on companies designing and selling semiconductors distinguishes it from broader semiconductor ETFs. This specialized strategy provides potential for higher growth but also higher volatility. FABL is suitable for investors with a higher risk tolerance seeking to capitalize on the long-term growth of the fabless semiconductor sector.

• SMH
• SOXX
• XSD

Data Sources:

• VanEck Official Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions can change rapidly, and past performance is not indicative of future results. Consult a financial advisor before making any investment decisions.