VanEck Fabless Semiconductor ETF(NASDAQ:SMHX)

SMHX is a passively managed fund that targets US-listed semiconductor stocks focused on high-value design and chip development. These companies avoid the high cost of in-house manufacturing by leveraging the expertise of third-party foundries. Although the index comprises only US-listed securities, it includes non-US companies, including those in emerging markets, through depositary receipts. Additionally, stocks denominated in foreign currencies are part of the holdings. The fund holds the top 22 stocks selected and weighted by market capitalization, with individual security weightings capped at 20%. The index is rebalanced semi-annually in March and September.