Here's Why the VanEck Semiconductor ETF Soared in the First Half of 2026 (Hint: Diversification Works in Investing)
The semiconductor sector had an excellent first half, but investors needed to capture a few different themes in their investing, and this ETF helped them do this.
Overview
The VanEck Semiconductor ETF (NASDAQ: SMH) soared by 82.1% in the first half of 2026, according to the data from S&P Global Market Intelligence. It's a fantastic performance. Still, it's not just a story of a rising tide in semiconductors lifting all boats. There's a lot of nuance to the sterling performance, and here's a look at a few of them to help investors decide what to do in the second half of 2026.
The passively managed ETF aims to track the performance of the MarketVector U.S. Listed Semiconductor 10% Capped Screened Index (MVIS). The MVIS tracks the performance of the top 25% of U.S.-listed semiconductor industry stocks (including equipment companies), subject to a 10% cap. The companies must derive 50% of their revenue from semiconductors or semiconductor equipment.
Details
It's an interesting approach that gives the MVIS and, in turn, the VanEck ETF, broader-based exposure than a market-cap-weighted index would. That's been a good thing for the ETF investors this year, as it means the position in Nvidia is capped at 10% and is rebalanced every quarter.
Source
Originally published at www.fool.com.