Top Semiconductor ETFs to Watch in 2026

Semiconductor ETFs offer investors exposure to companies across the chip supply chain, including designers, manufacturers, foundries and equipment makers. In 2026, interest in the sector remains high, with artificial intelligence, cloud infrastructure, data centres and electric vehicles widely viewed as potential drivers of long-term chip demand. 

For investors searching for an AI semiconductor ETF or semiconductor sector ETF, these funds can provide exposure to companies involved in advanced computing and related technologies. However, not all semiconductor ETFs are built the same, with differences in concentration, index methodology, liquidity and fund structure. 

In this guide, we compare three top semiconductor ETFs: VanEck Semiconductor ETF, iShares Semiconductor ETF and SPDR S&P Semiconductor ETF. We break down expense ratios, assets under management (AUM), holdings, exposure style and fund structure, while also outlining key risks to help investors and traders form their own informed view. 

Let’s begin. 

The information in this article is provided for educational purposes only and does not constitute financial advice. Consult a financial advisor before making investment decisions.

What are Semiconductor ETFs? 

Semiconductor ETFs are exchange-traded funds that invest in companies involved in the semiconductor industry, including chip designers, manufacturers and equipment makers, providing diversified exposure to the sector in a single investment. 

How Do Semiconductor ETFs Work?

Semiconductor ETFs track an index of chip-related companies. The fund holds shares in multiple semiconductor firms and its price moves based on the combined performance of those holdings. Investors buy and sell ETF shares on an exchange, just like stocks. 

SMH vs SOXX vs XSD: Semiconductor ETF Comparison 

Let’s look at a quick semiconductor ETF list, comparing selected funds across key metrics such as expense ratio, AUM, holdings, listing and exposure style. 

The list below can be a useful starting point for further research. When comparing an ETF semiconductor fund, investors should look at fees, holdings, liquidity, concentration risk and index methodology. 

*Data as on 24th April 2026. AUM and holdings figures can change over time.

1. VanEck Semiconductor ETF 

(SMH: NASDAQ) | US — Nasdaq | United States 

The VanEck Semiconductor ETF is one of the largest and most widely followed semiconductor ETFs. The SMH semiconductor ETF seeks to track the MVIS US Listed Semiconductor 25 Index, which is designed to capture the performance of large and liquid companies involved in semiconductor production and equipment. 

SMH is a concentrated fund, with significant exposure to major semiconductor companies. Because the portfolio is relatively narrow, a small number of large-cap names can have a significant influence on the fund's day-to-day performance. 

*Data as of 24 April 2026.  

Geographically, the fund is predominantly US-weighted, though its global reach is notable: US-listed companies account for approximately 77.8% of net assets, followed by Taiwan (11.8%), the Netherlands (6.2%) and Bermuda (2.4%). Taiwan's weight reflects TSMC's significant position in the index, a concentration that is worth understanding, given that geopolitical developments in the region may have an effect on the fund’s performance. 

For investors searching for a semiconductor ETF UK as an alternative to this fund, the VanEck Semiconductor UCITS ETF is also a popular option. At the time of writing, it holds 25 stocks, has an expense ratio of 0.35%, and offers exposure to the semiconductor sector through a UCITS structure. In the UK, the VanEck Semiconductor UCITS ETF ticker is SMGB on the London Stock Exchange, though investors should check the latest fund documents before investing. 

With Admirals, you can trade the VanEck Semiconductor ETF as a CFD. CFDs are derivative contracts that track the underlying price of an asset, enabling traders to take long and short positions using leverage; however, due to leverage, they carry a high risk of potential losses. For more details, we recommend reading our CFD trading guide. 

Let’s look at VanEck Semiconductor ETF performance below:  

2. iShares Semiconductor ETF 

(SOXX: NASDAQ) | US — Nasdaq | United States 

The iShares Semiconductor ETF (SOXX) is one of the most established and closely watched semiconductor ETFs in the market, having launched in July 2001. Managed by BlackRock under the iShares umbrella, it seeks to track the NYSE Semiconductor Index, an index composed of U.S.-listed equities spanning the full semiconductor value chain, from chip design and manufacturing to the equipment and materials that make production possible. 

SOXX holds 30 stocks, making it slightly broader than some of its peers while remaining a focused, sector-specific vehicle.  

*Data as of 24 April 2026. 

Unlike SMH, SOXX distributes its weight more evenly across its top holdings, with no single name dominating the fund. This more balanced construction means the fund's performance is driven less by any one stock and more by the broader health of the sector as a whole. 

Sectorally, the fund splits its exposure between semiconductor companies (75.71%) and semiconductor equipment makers (24.16%), a deliberate allocation that gives investors dual exposure to both the chips themselves and the precision machinery required to produce them. 

With Admirals, you can trade the iShares PHLX Semiconductor ETF CFD.  

3. SPDR S&P Semiconductor ETF 

(XSD: NYSE Arca) | US — NYSE Arca | United States 

The SPDR S&P Semiconductor ETF (XSD) is a US-listed semiconductor ETF managed by State Street Investment Management, formerly known as State Street Global Advisors. It seeks to track the S&P Semiconductor Select Industry Index, which represents the semiconductor segment of the S&P Total Market Index. The fund is listed on NYSE Arca under the ticker XSD. 

What makes XSD stand out is its structure. Unlike semiconductor ETFs where a handful of mega-cap stocks can dominate performance, XSD spreads exposure more evenly across the semiconductor industry through a modified equal-weighted approach. Its top holding, Marvell Technology Inc., accounts for around 3% of the fund, and the top 10 holdings make up roughly 30.65%, giving investors broader exposure across large, mid, and smaller-cap semiconductor companies. 

*Data as of 24 April 2026. 

This structure makes XSD a useful comparison point for investors who want semiconductor exposure but are concerned about heavy concentration in a few mega-cap chip stocks. However, it still remains a sector-specific ETF, meaning its performance can be affected by chip demand cycles, AI and data-centre investment trends, semiconductor equipment spending, valuation risk and broader technology-market sentiment. 

Risks of Semiconductor ETFs 

• High sector concentration 
• Cyclical demand tied to the global economy 
• Exposure to geopolitical and supply-chain risks 
• Valuation risk during AI-driven growth cycles 

How to Invest in Semiconductor ETFs 

To invest in semiconductor ETFs, investors generally need to: 

• Open a brokerage or trading account 
• Search for the ETF ticker, such as SMH, SOXX or XSD 
• Compare fees, holdings and liquidity 
• Choose order size and risk settings 
• Place the trade 

With Admirals, you can invest in stocks and ETFs, as well as trade CFDs on stocks and ETFs, by opening a live trading account and completing the onboarding process. Please note that trading CFDs involves a high level of risk due to leverage and may not be suitable for all traders. 

Here’s how to invest in semiconductor ETFs after opening your Admirals account: 

• Log in to the Dashboard on the Admirals website, where you can manage your accounts, access platforms and use analytical tools. 
• Click the Trade icon next to your chosen account to open MetaTrader 5 WebTrader. 
• Search for the semiconductor ETF you want to invest in. Admirals offers access to a range of global stocks and ETFs, with US stock and ETF commissions starting from $0.02 per share and a minimum commission of $1. 
• Click New Order, enter your order size and any risk management levels, then place your trade. 

Investing in Semiconductor ETFs: Pros & Cons 

The Bottom Line on Semiconductor ETFs 

Semiconductor ETFs offer a straightforward way to access companies involved in one of the most important areas of the global technology supply chain. However, funds can differ significantly in terms of holdings, fees, concentration, regional exposure and index methodology, so comparing the details before investing is essential. 

For those ready to move from research to action, Admirals provides access to a wide range of global ETFs through a live trading account. Consider opening a live account if you’re interested in investing in semiconductor ETFs.  

Frequently Asked Questions on Semiconductor ETFs 

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