The VanEck Semiconductor ETF (SMH) Could Top $350 by Year-End

The VanEck Semiconductor ETF (SMH) has surged by more than 37% since the start of the year and could reach the $350 mark before the end of 2021.

SMH is a Good Semiconductor ETF

The VanEck Semiconductor ETF (SMH) is a fund sponsored by VanEck and has more than $7 billion in assets under management. Thus, making it one of the largest funds seeking to match the performance of the Technology – Semiconductors segment of the stock market.

The SMH ETF is designed to match the performance, before fees and expenses, of the MVIS US Listed Semiconductor 25 Index. Meanwhile, the MVIS US Listed Semiconductor 25 Index tracks the general performance of companies operating within the semiconductor equipment and production space.

SMH currently has an operating cost of 0.35%, making it one of the cheapest investment products in this space. The fund’s 12-moth trailing dividend yield is 0.50%, and it holds most of its assets in Taiwan Semiconductor Manufacturing Co (14.16% of the total assets). The two other major assets are the Nvidia Corp (NVDA) and Asml Holding Nv (ASML).

SMH Could Rally Higher

The SMH ETF is one of the best-performing funds in the semiconductor space. Since the start of the year, the fund has gained about 37.80%, and its value has surged by 57.19% over the past 52 weeks. Over the past year, SMH has traded between $188.82 and $302.94.

At the time of writing, SMH is trading at $302.03, up by more than 0.03% since the United States market opened a few hours ago. The ETF’s price could touch the $350 level over the coming weeks if the fund can maintain its excellent performance.

The SMH ETF has a beta of 1.16, while its standard deviation of 34.61% for the trailing three-year period makes it a high-risk fund in the semiconductor space. The fund currently holds 26 stocks in its portfolio, making it more concentrated than other ETFs in the semiconductor sector.