VanEck Semiconductor ETF, focusing on the top 25 US semiconductor companies, has limited diversification, increasing investment risk.

VanEck Semiconductor ETF, despite focusing on the semiconductor sector, is not highly diversified, which introduces investment risk. The ETF tracks the MVIS US Listed Semiconductor 25 index, including the 25 largest, most liquid US-listed semiconductor companies. It's a market cap-weighted index that only includes companies generating at least 50% of revenue from semiconductors or semiconductor equipment. This narrow focus makes it a riskier investment choice.

June 08, 2024
3 Articles