VanEck Launches SMHC, Offering Pure-Play Access to China's Semiconductor Build-Out

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VanEck (Nasdaq: SMHC) launched the VanEck China Semiconductor ETF, offering pure-play exposure to China's domestic semiconductor value chain. The fund holds 25 large, liquid Chinese and Hong Kong semiconductor and equipment companies with no overlap with existing U.S.-listed semiconductor funds.

SMHC tracks the MarketVector China Semiconductor 25 Index. Constituents must be China/Hong Kong headquartered and derive at least 50% of revenues from semiconductors or semiconductor equipment. The index is weighted by modified free-float market cap with caps and rebalanced quarterly.

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The VanEck China Semiconductor ETF (SMHC) provides direct exposure to 25 of the largest and most liquid Chinese companies across the semiconductor value chain, a universe with no constituent overlap with existing U.S.-listed semiconductor funds.¹

NEW YORK, June 24, 2026 /PRNewswire/ -- VanEck today launched the VanEck China Semiconductor ETF (Nasdaq: SMHC), a strategy designed to give investors pure-play exposure to China's domestic semiconductor industry, a segment of the market that sits outside of conventional semiconductor allocations. SMHC extends VanEck's semiconductor franchise, which includes the VanEck Semiconductor ETF (SMH) and the VanEck Fabless Semiconductor ETF (SMHX).

China's domestic semiconductor industry has become one of the fastest-growing segments of its economy, yet most semiconductor strategies are concentrated in large U.S., Taiwanese and European names across design, fabrication and equipment. The build-out taking shape inside China is being constructed across the entire domestic value chain, reinforced by national policy priority, a captive base of state-directed domestic demand and sovereign capital.

"Most investors think they own semiconductors, but what they own is the incumbent supply chain, concentrated in a handful of U.S., Taiwanese and European leaders," said John Patrick Lee, CFA, Senior Product Manager at VanEck. "China is building a completely separate supply chain, from chip design to manufacturing equipment to advanced packaging, and almost none of those companies appear in a conventional semiconductor or broad China allocation. SMHC is built to close that gap through a single, rules-based, pure-play vehicle."

The investment case does not rest on a single catalyst. Several reinforcing forces are converging: the scale of China's domestic build-out, a national policy mandate for self-sufficiency, state-directed domestic demand, the structural tailwind created by U.S. export controls, and the sovereign capital underwriting all of it.

The build-out is already the largest of its kind by a key measure. In 2025, China was the world's largest spender on semiconductor manufacturing equipment, investing more than any other country or region, a signal of where the industry's physical infrastructure is being built.²

Export controls have reinforced that trajectory rather than slowed it. Since 2019, the U.S. has progressively tightened controls on the technology China can access, yet China's domestic equipment spending has expanded substantially. Every foreign supplier locked out of the Chinese market creates a domestic beneficiary, turning each new restriction into a procurement mandate for a homegrown alternative.

Policy reinforces that demand directly. Beijing has made chip self-sufficiency a national priority and steers purchasing toward domestic suppliers, requiring government bodies, state-owned enterprises, and critical sectors like energy and telecom to favor homegrown alternatives. The result is a captive order book that lets these companies scale before they have to win on global cost or performance.

Underpinning all of it is state financial commitment on a substantial scale, sustained over more than a decade. China's National IC Fund has committed approximately $98 billion across three phases since 2014, with the most recent phase in 2024 committing $47.5 billion to the sector.³

"What makes this compelling is that it's not dependent on a single policy or company," added Lee. "The build-out, the domestic demand and the localization push reinforce each other, and that is what gives the opportunity its staying power."

SMHC tracks the MarketVector™ China Semiconductor 25 Index, a rules-based index built through a disciplined, repeatable process. Included companies must be headquartered or incorporated in China or Hong Kong and derive at least 50% of their revenues from semiconductors or semiconductor equipment. This ensures every constituent is a direct beneficiary of the domestic build-out rather than a diversified conglomerate with incidental chip exposure. The index holds 25 names, weighted by modified free-float market capitalization with position caps, and is rebalanced quarterly.

Visit the VanEck China Semiconductor ETF (SMHC) fund page for more information. The VanEck team provides regular updates and research insights on its website.

¹ As of date of publication of this press release.
² Source: SEMI, as of April 2026.
³ State Council Guo Fa [2020] No. 8, Beijing Municipal Administration for Market Regulation on May 24, 2024.

About VanEck

VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets. This set the tone for the firm's drive to identify asset classes and trends – including gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 – that subsequently shaped the investment management industry.

Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of May 31, 2026, VanEck managed approximately $238.8 billion in assets, including mutual funds, ETFs and institutional accounts. The firm's capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and transparency are key to the experienced decision-making around market and index selection underlying VanEck's passive strategies.

Since our founding in 1955, putting our clients' interests first, in all market environments, has been at the heart of the firm's mission.

General Disclosures

This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees.

MarketVector™ China Semiconductor 25 Index intends to track the performance of 25 of the largest and most liquid Chinese companies in the semiconductor industry.

An investment in the VanEck China Semiconductor ETF (SMHC) may be subject to risks which include, among others, risks related to investing in the semiconductor industry, information technology sector, equity securities, depositary receipts, foreign securities, foreign currency, special risk considerations of investing in China issuers, special risk considerations of investing in Chinese-issued A-Shares, Stock Connect, emerging market issuers, PRC tax, medium- and large capitalization companies, cash transactions, market, operational, index tracking, authorized participant concentration, new fund, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount, liquidity of fund shares, non-diversified, index-related concentration, and issuer-specific changes risks, all of which may adversely affect the Fund.  Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Medium- and large-capitalization companies may be subject to elevated risks. Investments in Chinese issuers may entail additional risks that include, among others, lack of liquidity and price volatility, currency devaluations and exchange rate fluctuations, intervention by the Chinese government, nationalization or expropriation, limitations on the use of brokers, and trade limitations. 

An investment in the VanEck Semiconductor ETF (SMH) and VanEck Fabless Semiconductor ETF (SMHX) may be subject to risks which include, among others, risks related to investing in the semiconductor industry, special risk considerations of investing in Taiwanese issuers, equity securities, small-, medium and large-capitalization companies, foreign securities, emerging market issuers, foreign currency, depositary receipts, issuer-specific changes, market, operational, index tracking, authorized participant concentration, new fund, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversified, and index-related concentration risks, all of which may adversely affect the Fund. Small, medium and large-capitalization companies may be subject to elevated risks. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. 

Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.

©️ Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation.
666 Third Avenue, New York, NY 10017
Phone: 800.826.2333
Email: info@vaneck.com

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FAQ

What is the VanEck China Semiconductor ETF (Nasdaq: SMHC) launched on June 24, 2026?

The VanEck China Semiconductor ETF (SMHC) is an exchange-traded fund giving investors pure-play exposure to China’s domestic semiconductor industry. According to VanEck, it focuses on 25 of the largest and most liquid Chinese semiconductor and equipment companies across the full value chain.

How does SMHC provide pure-play exposure to China’s semiconductor build-out?

SMHC targets companies deriving at least 50% of revenue from semiconductors or semiconductor equipment, ensuring direct industry exposure. According to VanEck, this rules-based approach focuses on businesses that are primary beneficiaries of China’s domestic semiconductor build-out, not diversified conglomerates with incidental chip revenues.

What index does the VanEck China Semiconductor ETF (SMHC) track?

SMHC tracks the MarketVector China Semiconductor 25 Index, a rules-based benchmark focused on China’s semiconductor sector. According to VanEck, the index holds 25 China or Hong Kong companies, uses modified free-float market-cap weighting with position caps, and is rebalanced on a quarterly schedule.

How many companies are included in SMHC and what are the eligibility criteria?

SMHC provides exposure to 25 Chinese and Hong Kong companies across the semiconductor value chain. According to VanEck, eligible firms must be headquartered or incorporated in China or Hong Kong and earn at least 50% of their revenues from semiconductors or semiconductor manufacturing equipment.

How does SMHC differ from existing U.S.-listed semiconductor ETFs?

SMHC has no constituent overlap with existing U.S.-listed semiconductor funds, focusing solely on China’s domestic ecosystem. According to VanEck, most traditional semiconductor strategies emphasize U.S., Taiwanese, and European leaders, while SMHC targets a separate, China-based supply chain from design to advanced packaging.

What macro trends support the investment case for SMHC’s China semiconductor focus?

The investment case centers on China’s large-scale semiconductor build-out, policy support, and domestic demand. According to VanEck, factors include national self-sufficiency mandates, state-directed procurement, export control-driven localization, and about $98 billion committed by China’s National IC Fund across three phases since 2014.