This Chip ETF Outperforms the S&P 500, Falling Behind Only Twice Since 2016

VanEck Semiconductor ETF Outperforming Market

The VanEck Semiconductor ETF (NASDAQ: SMH) has achieved a total return of approximately 59% in 2026, significantly outpacing the S&P 500, which has gained about 12%. Over the past decade, the ETF has outperformed the S&P 500 in eight out of ten years, with its worst years in 2018 and 2022 seeing losses of 9% and 33%, respectively, compared to the index’s losses of 5% and 18% during the same periods.

As of September 16, 2026, Nvidia alone comprised approximately 23% of the fund’s assets, valued at about $16 billion, while the top five holdings represented nearly half of the total fund. Overall, the ETF manages roughly $72 billion in assets and charges an expense ratio of 0.35%. Despite its strong performance, investors should be cautious, as past cycles suggest future volatility is likely.