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ETF-INVESTMENT

Germany's only semiconductor ETF: VanEck Vectors Semiconductor

Author: @Techaktien


To my knowledge, there is currently only one tradable semiconductor ETF in Germany that tracks the chip sector. There are many reasons to invest specifically in this sector, as many growth markets also increasingly require chips:

  • Blockchain & cryptocurrencies
  • Electromobility
  • Autonomous driving / robo-taxis
  • Data centers / servers / Big Data
  • Streaming of music, movies, TV and games
  • Progressive digitalization of society and services
  • Cloud computing and industrial cloud
  • Artificial intelligence
  • 5G mobile communications
  • Internet of Things / IoT and Industrial IoT
  • Work from Home & Remote Learning
  • More and more people around the world are getting out of poverty and need various electronic items such as cell phones, PCs or notebooks.
  • Research & Science
  • Gaming
  • Quantum computing

Issue date: December 01, 2020
Number of positions: 25
Fund size: $234 million (small)
Replication: Physical / Full
Distribution: none
Total Expense Ratio (TER): 0.35%
Currency: US Dollar
WKN: A2QC5J
ISIN: IE00BMC38736

Available at: ING, Comdirect, Consorsbank, Scalable, S Broker, Max Blue, Smartbroker, DKB, among others (so far not available at Trade Republic and Postbank)
Savings Plan Capability: Apparently so far only Comdirect from 25€ / month.

Companies initially considered for inclusion in the index:

  • Mainly active in the semiconductor industry, generate more than 50% of revenues from this industry
  • Market capitalization over 150 million US dollars
  • Average daily revenue of more than $1 million over three months
  • Minimum trading volume of 250,000 shares in each of the last 6 months

Intel Corp 11.73%
ASML Holding 10.76%
TSMC 10.11%
Nvidia 9.07%
Texas Instruments 7.88%
Qualcomm Inc 7.31%
Broadcom Inc 6.68%
Micron Technology 5.06%
Applied Materials 4.83%
AMD 4.74%
Lam Research Corp 3.55%
NXP Semiconductors 2.64%
Analog Devices 2.55%
KLA Corp 1.67%
Xilinx Inc 1.40%
Skyworks Solutions 1.38%
Cadence Design 1.37
Microchip 1.30%
STMicroelectronics 1.19%
Maxim Integrated 0.96%
Marvell Technology 0.89%
Teradyne 0.87%
Qorvo 0.87%
On Semiconductor 0.62%
Universal Display 0.49%

Since the ETF has only been on the market for a few months, a meaningful comparison becomes difficult. Therefore, I take the similar iShares PHLX Semiconductor ETF (ticker SOXX), which is not tradable in Germany. The indices are sorted by 3 year performance:
1 year 3 years
iShares PHLX +82% +134% (as substitute for the VanEck Semiconductor ETF)
Nasdaq 100 +75% +86%
S&P500 +63% +45%
Nikkei 225 +80% +39%
MSCI World +48% +37%
Dow Jones +64% +34%
TecDax +50% +28%
SDAX +91% +27
MDAX +72% +25%
CSI 300 +40% +23%
Dax +72% +21%
MSCI EM +58% +16%
EuroStoxx 50 +48% +13%
Hang Seng +33% -8

Of course, past performance says nothing about the future. However, as mentioned at the beginning, there is a lot of potential and demand for chips in the future, which should benefit the VanEck Vectors Semiconductor ETF. The downside here should be the relatively heavy weighting of the top 10 positions in the ETF and that, with a few exceptions, they are all US stocks. For example, Infineon and the large contract manufacturer Samsung Electronics are missing. However, since most of the companies operate and sell globally, this disadvantage is somewhat put into perspective, I think. If I didn't already have so many included stocks from the ETF, I would probably invest a mid-five figure sum. You can get more information about the ETF here at getquin as well as on the issuer VanEck's site.