MF3d
The VanEck Semiconductor ETF (NASDAQ:SMH) is a Buy on the back of strong momentum. Fundamentally, an ETF that seeks to gain from the AI tailwinds and overall semis supply chain growth is almost a must-have in one's core portfolio
SMH Is A Concentrated Play That Works
Summary
- VanEck Semiconductor ETF is a Buy due to strong AI-driven momentum, robust earnings, and consistent outperformance versus broader tech indices like QQQ.
- The ETF's market-cap weighting leads to heavy concentration in Nvidia and other dominant players, which is justified by their AI ecosystem leadership.
- While some global semiconductor leaders are missing, SMH's portfolio still remains well-positioned for AI tailwinds and continued sector growth.
- Investors should expect volatility, but SMH's risk/reward profile and historical outperformance make it a core holding for growth-focused portfolios.
I am a stock analyst with over 20 years of experience in quantitative research, financial modeling, and risk management. My focus is on equity valuation, market trends, and portfolio optimization to uncover high-growth investment opportunities. As a former Vice President at Barclays, I led teams in model validation, stress testing, and regulatory finance, developing a deep expertise in both fundamental and technical analysis. Alongside my research partner (also my wife), I co-author investment research, combining our complementary strengths to deliver high-quality, data-driven insights. Our approach blends rigorous risk management with a long-term perspective on value creation. We have a particular interest in macroeconomic trends, corporate earnings, and financial statement analysis, aiming to provide actionable ideas for investors seeking to outperform the market.
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