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Semiconductor ETF from VanEck Europe doubles fund assets to USD2 billion in less than a year

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VanEck has announced that the VanEck Semiconductor UCITS ETF has reached over USD2 billion in assets under management (AUM) after crossing the USD1 billion AUM mark for the first time less than one year ago in summer 2023.

The fund invests in companies that generate a significant proportion of their sales from semiconductors or semiconductor equipment — two business segments that have greatly benefitted from the ongoing development and mass commercialisation of generative AI technologies, the firm says. Led by strong performance of industry leaders such as NVIDIA, Taiwan Semiconductor Manufacturing, ASML and AMD, the sector has received significant attention and interest among investors.

“The strong growth of the fund reflects the high importance of semiconductors for the global economy,” says Martijn Rozemuller, CEO of VanEck Europe. “Without microchips, modern technologies we deal with every day would be inconceivable — modern communication, computers, healthcare infrastructure, logistics systems and clean energy technologies are now directly or indirectly dependent on powerful semiconductors.”

Additionally, the rapid developments in artificial intelligence and future technologies such as robotics, cloud computing and autonomous driving have led to a growing demand for advanced computer technology, the firm says. “The required research and development effort in the semiconductor industry provides competitive advantages for established companies in the sector, which can have a positive impact on their long-term performance and profits,” says Rozemuller.

VanEck launched the ETF in Europe in December 2020, designed to offer European investors the opportunity to participate in the development of companies in the semiconductor industry — as well as to complement the successful launch of a similar themed fund in the United States.

The VanEck Semiconductor UCITS ETF invests in an international selection of publicly listed semiconductor companies. The fund’s benchmark, the MVIS US Listed Semiconductor 10% Capped ESG Index is set up as a pure play index, meaning that companies generate at least 50 per cent of sales from semiconductors and semiconductor accessories are eligible for inclusion. The weighting is limited to 10 per cent per company.

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