VanEck Launches China Semiconductor ETF on SIX Exchange
The new SMHC fund offers European investors exposure to 25 Chinese semiconductor and equipment manufacturers.
Updated on Oct. 28, 2026 in Semiconductors
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VanEck has introduced the China Semiconductor UCITS ETF, which tracks the MarketVector China Semiconductor 10 Percent Capped Screened Index. The fund, trading under the ticker SMHC, provides focused exposure to companies that generate at least 50 percent of their revenue from chip production or equipment manufacturing.
Why it matters
The fund capitalizes on China's drive to establish an independent semiconductor industry amidst intensifying U.S. export restrictions. By providing a vehicle for capital, this ETF targets domestic firms like Cambricon and NAURA that are tasked with reducing the nation's reliance on foreign supply chains.
The SMHC fund holds 25 positions and carries an annual total expense ratio of 0.65 percent. It is denominated in U.S. dollars, reinvests income, and adheres to strict criteria requiring at least 50 percent revenue concentration in the semiconductor sector.
The players
VanEck
VanEck is a global investment management firm that oversees $244 billion in assets and specializes in diverse exchange-traded products.
Cambricon
Cambricon is a Chinese chipmaker identified as a primary beneficiary of the country's push for domestic semiconductor self-sufficiency.
NAURA
NAURA is a semiconductor equipment manufacturer that plays a critical role in developing local alternatives to foreign-supplied hardware.
The details
The ETF physically replicates the MarketVector China Semiconductor 10 Percent Capped Screened Index to offer exposure to the evolving domestic chip market. It serves as a specialized addition to the portfolio of VanEck, an investment firm that manages $244 billion in assets globally.
Timeline
The VanEck China Semiconductor UCITS ETF launched on October 28, 2026.
The Tech Race
This fund launch represents a structural shift in the global semiconductor market as capital flows toward domestic alternatives to legacy Western suppliers. It positions investors to capitalize on the rapid maturation of Chinese chip technology triggered by restrictive trade policies.
Investors gain a new financial instrument to track the performance of 25 Chinese chip companies within the European market. The product allows for broader institutional and retail access to the domestic semiconductor supply chain without requiring direct individual stock purchases.
The takeaway
This ETF offers a targeted way for investors to participate in the ongoing expansion of the Chinese hardware industry. Individuals should monitor how domestic equipment makers perform against foreign competitors as China continues its push for technological independence.
Further reading
Learn more about the latest developments in the global industry on the Semiconductors page.
Source note: This article includes information reported by Finews.
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