
Semiconductors are at the heart of every electronic device today. They enable our technology, from smartphones, to laptops, cars, medical devices and most recently of all, artificial intelligence (AI) systems. Semiconductors are an essential component in these technologies.
With the world becoming increasingly tech-driven, chip demand continues to grow and we expect the semiconductor industry to be one of the best-performing industries over the next decade.
So far in 2024, chip sales have risen by 18.9% year-on-year and look to be on track to deliver double digit sales growth over the next few quarters. NVIDIA saw its revenue more than double in FY2024 as demand for AI chips surged. Cloud service providers (e.g. Microsoft, Amazon and Google) have snapped up much of these chips as they continue to integrate AI solutions into their products. The trio also managed to surpass growth expectations in their latest earnings results. Microsoft in particular, said that revenue for its cloud services climbed 31% in 1Q24, and nearly a quarter of that growth is attributable to AI services.
One of the best ways to gain exposure to the semiconductor sector is through the VanEck Semiconductor ETF (SMH). This ETFs track the performance of the semiconductor industry as a whole, providing investors with a convenient and cost-effective way to invest in this rapidly growing sector.
The VanEck Semiconductor ETF

*Returns as at 21 Aug 2024
Other Funds to consider
In addition to the VanEck
Semiconductor ETF, investors who are seeking to invest in the broader
Technology sector can consider these stand-out Technology sector Funds, which
have exhibited strong returns over the past few years. Click on the “Fund
Review” tab in their respective Fund Factsheets to discover how these fund managers
help you select the best stocks in the Technology sector!
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Unit Trust |
Fund Currency |
YTD Returns* |
3-year Annualised Returns |
5-year Annualised Returns |
|
SGD |
26.99% |
7.32% |
16.78% |
|
|
USD |
13.44% |
7.93% |
19.64% |
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FSMOne ETF RSP
For investors who prefer a Dollar Cost Averaging strategy, check out FSMOne’s ETF RSP (Regular Savings Plan) feature. There are over 200 ETFs, including the VanEck Semiconductor (SMH) ETF which you can invest into on a regular basis at 0% processing fees. You can start investing from a minimum of $50 a month.
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