VanEck Semiconductor ETF Beats Nvidia in 2026 with Diversified Approach
The VanEck Semiconductor ETF (SMH) has outperformed Nvidia (NVDA) in 2026, returning around 69% compared to Nvidia's 23%. The fund's top holding is Nvidia, but its smaller positions have contributed significantly to the overall gain.
Micron Technology (MU), Intel (INTC), and Advanced Micro Devices (AMD) have led the way, with gains of 276%, 223%, and 181% respectively. These three stocks account for around 32 percentage points of the fund's total gain, while Nvidia contributes around 5 points.
The ETF's structure allows it to hold a range of semiconductor companies, including cyclical ones like Micron. This diversification has helped the fund beat Nvidia by such a wide margin. While Nvidia's business has accelerated in recent quarters, its market value was already high going into 2026, leaving room for other stocks to catch up.