VanEck Vectors Semiconductor UCITS ETF

Issuer: Van Eck

Asset Class: Equity

TER: 35bps

Trading Currency: GBP

Pays Income: False

Listing Date: 03 Dec 2020

Ticker: SMGB

ISIN: IE00BMC38736

This fund offers targeted exposure to the semiconductor industry, which forms the bedrock of the modern digital world. Semiconductors, or chips, are essential components in a vast and growing array of products, from smartphones and personal computers to advanced data centers and electric vehicles. The industry is at the epicenter of major long-term structural growth trends, including the proliferation of artificial intelligence (AI), the rollout of 5G networks, the expansion of the Internet of Things (IoT), and the ongoing digitalization of the global economy. As these technologies become more integrated into our daily lives, the demand for more powerful and efficient semiconductors is expected to continue its strong upward trajectory, positioning the industry for sustained growth.

The investment strategy is designed to provide investors with pure-play access to the most prominent and liquid companies operating in the semiconductor sector. By tracking a specialized index, the portfolio includes companies involved across the entire value chain, encompassing chip design, fabrication, manufacturing, and the production of specialized equipment. This approach provides a comprehensive and diversified vehicle for investing in the industry, mitigating the risks associated with holding individual stocks while capturing the potential upside of the sector as a whole. The fund invests directly in the shares of these companies, offering transparent exposure to the businesses that are powering the next wave of technological innovation.

For investors seeking to capitalize on the transformative power of technology, this fund represents a strategic allocation. It allows for a concentrated bet on a high-conviction theme that is fundamental to nearly every major technological advancement. By investing in the ‘picks and shovels’ of the digital age, market participants can gain exposure to a critical and dynamic industry poised to benefit from enduring secular tailwinds, making it a compelling component for a growth-oriented, long-term portfolio.