VanEck lists Europe's first semiconductor ETF across four exchanges
The $4bn US chip strategy reaches London, Frankfurt and Milan in a UCITS wrapper, with a 10% cap that can drift between rebalances.
VanEck has listed a semiconductor ETF on four European exchanges, a fund ETF Strategy identifies as the continent's first dedicated to chipmakers. The UCITS vehicle trades in dollars and pounds on the London Stock Exchange, and in euros on Deutsche Börse Xetra and Borsa Italiana.
The new fund is the European version of VanEck's Nasdaq-listed semiconductor ETF, which holds more than $4bn. It tracks the MVIS US Listed Semiconductor 10% Capped Index, built by VanEck's indexing arm MV Index Solutions. The benchmark screens for US-listed companies worth over $150m that earn at least half their revenue from semiconductors or semiconductor equipment.
The index has 25 constituents and applies its 10% cap at semiannual rebalancing. Between rebalances, price moves can push a name over the line. That is why the current snapshot shows ASML at 10.3% and Taiwan Semiconductor at 10.2%, with Qualcomm at 9.3%, Nvidia at 8.6% and Texas Instruments at 8.5%.
VanEck calls microchips an essential component of cloud computing, artificial intelligence, robotics, cybersecurity and autonomous driving, and expects semiconductor revenue to grow about 5% a year to $730bn by 2026.
The index, the 25 names and the cap all arrive unchanged from a strategy that already holds more than $4bn in the US. The new piece is the wrapper, and the exchanges it trades on.