Semiconductor ETFs 2026: A comparison of the best ETFs
Semiconductors are the ‘new oil’ of the global economy. Without chips, there would be no artificial intelligence (AI), no electric vehicles and no modern factories. If you want to benefit from technological progress in 2026, the following ETFs may be of interest to you. In this guide, you’ll find out which ETFs are leading the way and where you can invest in them at the best price.
In brief:
- Semiconductors are needed for all electronics such as smartphones, computers, cars, machines…
- They are important for the function of almost all devices and demand is exploding.
- The industry is changing and market shares are shifting, which makes investment difficult.
- Semiconductor ETFs avoid this problem because they invest in the entire industry.
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The 4 best semiconductor ETFs for your portfolio
Here are the current leading semiconductor ETF products for European investors, ranked by fund size and strategy:
1. VanEck Semiconductor UCITS ETF (VVSM)
The VanEck Semiconductor ETF is the giant among semiconductor ETFs in Europe. It offers high liquidity and a 10% limit on individual shares.
- ISIN: IE00BMC38736 / Ticker: VVSM
- Key feature: Individual stocks such as Nvidia are limited to a maximum of 10% to avoid concentration risk.
- Costs (TER): 0.35% p.a.
2. iShares MSCI Global Semiconductors UCITS ETF (SEC0)
The choice for maximum diversification. This ETF invests not only in the industry giants, but in over 250 companies worldwide.
- ISIN: IE000I8KRLL9 / Ticker: SEC0
- Key feature: Also includes small and mid-cap companies.
- Costs (TER): 0.35% p.a.
3. Amundi MSCI Semiconductors UCITS ETF (LSMC)
This ETF is ideal for investors who wish to focus heavily on market leaders such as Nvidia.
- ISIN: LU1900066033 / Ticker: LSMC
- Key feature: Very high weighting of top stocks (Nvidia often >25%).
- Costs (TER): 0.35% p.a.
4. HSBC Nasdaq Global Semiconductor UCITS ETF (HNSC)
An interesting and often cheaper alternative for semiconductor ETFs, which focuses on the Nasdaq Semiconductor Index. However, with a market capitalisation of €93 million, the ETF is very small and is therefore at risk of being closed by the provider, HSBC.
- ISIN: IE000YDZG487 / Ticker: HNSC
- Costs (TER): 0.35% p.a.
Semiconductor ETF Comparison Table
| ETF Name | Ticker | Size (€ million) | 1-year return | TER |
| VanEck Semiconductor | VVSM | ~3.941 | +70,24 % | 0,35 % |
| iShares Global Semiconductors | SEC0 | ~2.142 | +69,41 % | 0,35 % |
| Amundi MSCI Semiconductors | LSMC | ~1.121 | +67,38 % | 0,35 % |
| HSBC Nasdaq Semiconductor | HNSC | ~93 | +72,94 % | 0,35 % |
| (As of March 2026 ) |
Where to buy semiconductor ETFs? The best brokers for 2026
To ensure your returns aren’t eroded by fees, choosing the right broker is crucial. Here are the best options
- Trade Republic: The number one neobroker. Offers over 2,500 free savings plans starting from €1. Additionally, you receive 2% interest p.a. on your balance.
- Scalable Capital: Impressive thanks to the largest selection (3,000+ ETFs) and attractive interest rates (2.5% on overnight money).
- Freedom24: The best choice for anyone looking for an affordable EU-based broker without automatic tax deduction and with access to global markets. However, there are no savings plans, though in my view this is offset by the generous bonus
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What are semiconductors and why are they so important?
Semiconductors are materials that possess both conductive and insulating properties. They form the basis for the construction of computer chips. The term “semiconductor” is therefore no longer used in its original chemical context, but has become synonymous with all computer chips and circuit boards.
As a result, semiconductors and the companies that produce them play an incredibly significant role in our society: everything from smartphones, computers and electronic devices right through to the control systems of machines, cars and more relies on them.
The number of such devices has been growing steadily for years. This is hardly surprising, given that more and more areas of our lives are becoming interconnected as part of the digital transformation. Additional sensors, networks and the like also require additional semiconductors.
Due to their function as the basic building blocks of electronic devices, semiconductors therefore play a central role in our technological progress: new applications and innovative technologies require more computing power and more semiconductors. Their speed thus plays a decisive role in determining the quality and availability of new applications.
Complex manufacturing leads to a concentrated market
The manufacture of semiconductors is an extremely complex field. Only a few companies possess the vast technical expertise and highly qualified staff required for production.
The financial hurdle involved in starting semiconductor production is also enormous: several hundred million euros are needed just to purchase the necessary equipment! Furthermore, manufacturing know-how is almost entirely protected by patents.
It is therefore no wonder that only a handful of companies have divided the semiconductor market among themselves. Heavyweights such as Nvidia, Intel and AMD account for the lion’s share of this extremely lucrative industry.
Although new players occasionally enter this market, they remain the exception. As a rule, market share shifts only between the established giants. The most important manufacturing centres are primarily located in Asia and the USA.
Ever-increasing demands on the quality and quantity of semiconductors pose major challenges even for leading companies, but also mean constant demand and enormous turnover.
Can you profit from the shortage with a semiconductor ETF?
The difficulty of manufacturing is most clearly evident in the form of the ongoing chip shortage: despite steadily rising demand, manufacturers are unable to supply the required quantity of circuit boards.
The supply bottleneck affects not only computers and smartphones, but also the automotive industry and many others. Even in medical technology, the energy sector and scientific research, the semiconductor shortage is being felt.
Private individuals are experiencing the insufficient supply, for example, in the waiting times for a new car or when buying a PlayStation 5: although the games console has been on the market for more than two years, prospective buyers around the world are still struggling to get hold of one.
A situation that was once unthinkable in our capitalist system! However, without sufficient semiconductors, production figures simply cannot be increased any further.
Investors entering this sector are banking on precisely this massive demand. In recent years, however, this has not led to any significant success! The companies, shares and semiconductor ETFs involved have, for the most part, suffered heavy losses.
Automatic rebalancing: The advantage of semiconductor ETFs
The supply bottleneck (and other factors) has weighed heavily on companies’ results. Nevertheless, the sector is worth investing in due to its central role in our society and its constant development.
The companies involved will have orders to fulfil for years to come. Both a semiconductor ETF and individual shares are very well suited to capitalising on this situation. A combination, for example, of a semiconductor ETF as a base plus individual shares in Nvidia and others, is also very popular.
As the market is limited to just a few key players in Asia and the US, investors can certainly purchase their securities individually. However, this exposes them more heavily to shifts in the sector and requires them, for example, to rebalance their portfolios themselves when companies gain or lose market share.
With this exchange-traded fund, this step can be avoided, as rebalancing is carried out automatically. As a result, investors benefit from the success of the entire sector and have significantly less effort involved. Furthermore, such a semiconductor ETF requires considerably less initial capital than individual shares, as we can purchase a unit for just a few euros.
Last but not least, it should be noted that the entire sector is highly innovative and constantly evolving. Anyone deciding to invest in individual shares must therefore invest a fair amount of time and energy to keep track of developments. Here, too, a semiconductor ETF offers advantages.
Conclusion: An industry of the future with obstacles
The importance of the semiconductor industry for all areas of our lives cannot be overstated. Nevertheless, investors have often found it difficult in the past to benefit from this vital sector.
Even ETFs, which normally represent a comparatively low-risk and straightforward way to invest in an entire sector. Semiconductor ETFs have recently delivered very strong returns for their investors.
Although the future of this key industry is secure, the future performance of the companies involved is difficult to predict. As a result, investors have repeatedly had to accept heavy losses on individual shares and semiconductor ETFs.
However, it is precisely this volatility that makes the sector very exciting for investors who have strong nerves or are looking to invest for the long term. They are likely to benefit from the semiconductor companies’ order books, which are filled for years to come.
