Fabless-only semiconductor ETF gains 54% in 2026 while skipping Intel

A semiconductor exchange-traded fund has raced higher in 2026, gaining more than 54% year to date even though it does not hold one of the industry’s best-known chip names: Intel.

Through July 2, 2026, the VanEck Fabless Semiconductor ETF, traded in the U.S. as SMHX, was up 54.22% year to date, according to the market report that highlighted the fund’s unusual roster for a sector widely associated with large manufacturers.

The key to that performance profile is the fund’s definition of what counts as a “fabless” semiconductor company. “Fabless” companies design chips but do not manufacture them in-house, instead relying on outside manufacturing partners.

Under the strategy described in the report, SMHX is structured to target fabless chip designers and to avoid holding semiconductor manufacturers by mandate. In practical terms, that approach means it is built to own companies such as large designers, while excluding firms that primarily manufacture chips.

Intel, traded on Nasdaq under the ticker INTC, is one of the sector’s most recognizable vertically integrated chip makers, so the ETF’s fabless-only tilt effectively keeps it out. The report framed this as a deliberate gap rather than an omission caused by portfolio selection.

The headline implication is that investors using a sector ETF like SMHX are expressing a specific view about the semiconductor value chain. By focusing on chip design rather than chip production, the fund’s returns can diverge meaningfully from broader semiconductor baskets that include both designers and manufacturers.

The report did not provide further detail on SMHX’s exact holdings, concentration, or how it defines “fabless” in edge cases, such as companies with mixed operating models or manufacturing partnerships that vary by product line.

For investors and market-watchers, the next question is how persistent the gap becomes as chip industry expectations shift. If market leadership continues to favor design-focused companies over manufacturers, SMHX’s performance could stay unusually disconnected from funds that hold Intel and other makers.