VanEck Launches China Semiconductor ETF
The fund tracks 25 companies, providing exposure to firms central to China's domestic semiconductor hardware push.
Updated on Oct. 28, 2026 in Semiconductors
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VanEck has launched a new UCITS ETF tracking the Chinese semiconductor industry, now trading on the SIX Swiss Exchange. The fund holds 25 positions in companies that derive at least half of their revenue from chip production or equipment manufacturing.
Why it matters
The fund highlights investor interest in China's drive to build an independent semiconductor supply chain. This push is fueled by ongoing U.S. export restrictions that pressure Chinese firms to domesticate their hardware alternatives.
The fund, trading under the ticker SMHC, replicates the MarketVector China Semiconductor 10 Percent Capped Screened Index. It carries an annual total expense ratio of 0.65 percent.
The players
VanEck
An investment management firm with $244 billion in global assets that focuses on thematic and sector-specific exchange-traded funds.
SIX Swiss Exchange
A major European stock exchange based in Zurich that hosts the listing and trading of the newly introduced semiconductor ETF.
Cambricon
A Chinese chipmaker focused on artificial intelligence processors that serves as a core holding within the new fund.
NAURA
A Chinese manufacturer of semiconductor production equipment that is featured as a key position in the ETF portfolio.
The details
The ETF physically replicates the underlying index by holding equity in companies that generate at least 50 percent of their revenue from semiconductors or specialized manufacturing equipment. This structure provides direct exposure to firms like Cambricon and NAURA, which are central to China's efforts to replace foreign semiconductor suppliers.
Timeline
The VanEck China Semiconductor UCITS ETF launched on October 28, 2026.
The Tech Race
This fund acts as a financial vehicle for China's goal of achieving industrial independence in high-end silicon. It sits alongside VanEck's existing $8 billion international semiconductor ETF as the firm expands its sector-specific exposure.
The ETF is now available for institutional and retail investors to trade on the SIX Swiss Exchange. It provides a standardized financial instrument to gain exposure to China's domestic chip sector rather than purchasing individual shares of foreign-listed companies.
The takeaway
Investors should watch how the fund's holdings perform as export controls continue to limit China's access to advanced fabrication technologies. Track the fund's index rebalancing cycles for updates on which specific Chinese firms are prioritized in the domestic replacement strategy.
Further reading
For broader trends in chip manufacturing, visit our Semiconductors section.
Source note: This article includes information reported by Finews.
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