VanEck lists first semiconductor ETF on the London Stock Exchange

VanEck has listed the VanEck Vectors Semiconductor UCITS ETF on the London Stock Exchange. This new index fund is the first UCITS compliant ETF in the UK with a focus on companies within the semiconductor industry. 

“Microchips are an elementary component of the high-tech industry,” says Martijn Rozemuller, European Head of VanEck. “They are used in technical components such as computer chips or microprocessors and our modern world would be inconceivable without them. Be it with topics such as cloud computing, 5G, artificial intelligence, robotics, cybersecruity, autonomous driving or digitalisation. With the growing use of modern technology in business and everyday life, the demand for and significance of more powerful microchips is increasing." 

The market for semiconductors has shown a positive growth in the past that reflects this. According to IndustryResearch this was still at around 488 billion US dollars in 2018 and is expected to grow to over USD730 billion by 2026 – with an annual growth rate of around 5 per cent. These figures represent an estimate based on current data, but are not intended to be a prediction of a positive development, as the market situation can change at any time. The VanEck Vectors Semiconductor UCITS ETF invests in an international selection of semiconductor companies that demonstrate high liquidity due to their market capitalisation and trading volume.

“This new ETF was developed after we received many requests for the successful US version of the ETF. To address this demand, we developed the UCITS version that we are listing today,” says Rozemuller.

“The MVIS US Listed Semiconductor 10 per cent Capped Index on which the ETF is based has been established as a Pure Play Index,” says Dimitri Klymenko, Product Manager at VanEck. “This means that only those companies will be included that derive at least 50 per cent of their revenues from semiconductors and semiconductor equipment. This allows investors to invest in this industry in a very conscious and targeted manner.”