Semiconductor ETFs Before Nvidia Earnings: Which Semiconductor Funds Are Worth Buying Now

Key Takeaways

• The VanEck Semiconductor ETF has gained 69 percent since the start of 2026 and is the largest semiconductor ETF with over 4 billion euros in assets under management.
• On August 20, 2026, major semiconductor ETFs showed significant outflows, indicating that investors are reducing positions in volatile AI stocks.
• The top 3 holdings (Nvidia, TSMC, Broadcom, or ASML) account for 30 to 40 percent of fund assets depending on the ETF, while the top 10 reach 60 to 75 percent.
• A typical global ETF already contains around 9 percent semiconductor exposure, which is why an additional allocation of no more than 5 to 10 percent is recommended.
• The iShares MSCI Global Semiconductors ETF covers 80 to 244 global stocks and offers broader diversification than the VanEck fund, which focuses on 25 US-listed titles.

Semiconductor Market Shows Nervousness Before Nvidia Results

The semiconductor industry has delivered strong gains for investors during 2026. The VanEck Semiconductor ETF is up 69 percent year-to-date. However, recent market movements reveal a shift in sentiment: on August 20, 2026, major semiconductor ETFs, including the VanEck product, experienced significant outflows. This suggests that investors are currently reducing positions in volatile AI stocks.

The upcoming quarterly earnings from Nvidia – a leading company in graphics processor development with an important role in artificial intelligence – is likely to play a central role. For retail investors, the question arises which semiconductor ETFs are suitable as core holdings despite short-term volatility.

VanEck Semiconductor ETF: Market Leader with Concentration in US Stocks

The VanEck Semiconductor ETF (ISIN: IE00BMC38736, WKN: A2QC5J) is the largest semiconductor ETF on the market with over 4 billion euros in assets under management. It tracks the MVIS US Listed Semiconductor 10% Capped Index, which comprises 25 stocks listed in the United States. Taiwan's TSMC and Dutch chipmaker ASML are represented in the portfolio via ADRs (American Depositary Receipts – exchange-traded certificates on foreign shares).

The fund uses full physical replication without ESG filters and has the lowest tracking difference of all semiconductor ETFs. The highest liquidity and tightest spreads make it particularly attractive for larger transactions. The TER (Total Expense Ratio – annual total cost ratio) is around 0.35 percent.

The UCITS 10/40 capping rule – an EU regulation that limits individual positions to a maximum of 10 percent and all positions above 5 percent combined to 40 percent – provides some risk diversification. Nevertheless, concentration risk remains substantial: disappointments at Nvidia have a disproportionate impact on the ETF.

iShares MSCI Global Semiconductors: Broader Global Diversification

The iShares MSCI Global Semiconductors ETF (ISIN: IE000I8KRLL9) covers 80 to 244 global stocks from the MSCI index and thus offers significantly broader diversification than the VanEck fund. The portfolio ranges from Nvidia and TSMC to smaller suppliers and equipment makers, covering the entire global semiconductor industry.

For most investors, this ETF is likely to be the more sensible core product (as of April 2026), as it does not focus exclusively on US-listed stocks and thus better spreads regional risks. The higher number of holdings also mitigates concentration risk, although the top 3 positions continue to account for 30 to 40 percent of fund assets.

Amundi MSCI Semiconductors ESG: Sustainability Filter Included

The Amundi MSCI Semiconductors ESG (ISIN: LU1900066033 for the accumulating variant, LU2090063327 for the distributing variant) tracks around 80 global stocks based on the MSCI ACWI Semi ESG. The ETF uses synthetic replication via swap – a method in which performance is replicated through a swap agreement with a bank.

ESG filters exclude companies in weapons, tobacco, coal, and gambling. The TER is around 0.35 percent. For investors who want to consider sustainability criteria without sacrificing semiconductor exposure, this fund offers an alternative.

Concentration Risk: Why Diversification Is Crucial

Concentration risk in semiconductor ETFs is very high. The top 3 holdings – depending on the fund, Nvidia, TSMC, Broadcom, or ASML – account for 30 to 40 percent of fund assets. The top 10 positions reach 60 to 75 percent. This concentration means: the price movements of just a few individual stocks largely determine ETF performance.

A typical global ETF (FTSE All-World, MSCI World, MSCI ACWI) already contains around 9 percent semiconductor exposure through Nvidia, TSMC, Broadcom, ASML, and AMD. Anyone who additionally buys a semiconductor ETF significantly increases this share. Experts therefore recommend a maximum allocation of 5 to 10 percent of the equity portfolio as an additional semiconductor tilt.

At a 5 percent tilt, total chip weight comes to around 14 percent – a deliberate sector overweight without one-sidedness. At a 10 percent tilt, total chip weight rises to about 18 percent, which is still considered acceptable. Above 10 percent tilt, the portfolio becomes concentrated, and above 25 percent tilt, critical concentration risk emerges (over 32 percent total chip), which can no longer be understood as a diversified portfolio.

Taxation in Germany: Partial Exemption Reduces Tax Burden

Semiconductor ETFs with at least 51 percent equity exposure are subject to standard ETF taxation in Germany. Investors benefit from a 30 percent partial exemption on income, which reduces the effective tax burden to around 17.5 percent instead of the full 25 percent (plus solidarity surcharge).

For accumulating semiconductor ETFs such as VanEck, iShares, HSBC, and Amundi-Acc, the advance flat rate applies – an annual taxation on imputed income, even if no distribution occurs. Tax-efficient German brokers such as flatex, Trade Republic, finanzen.net ZERO, or Comdirect automatically report taxation to the tax office.

Strategic Classification: Which ETF Is Right for Which Investor?

There is no objectively best semiconductor ETF. The choice depends on individual priorities. The VanEck Semiconductor ETF is suitable for investors who specifically target US-listed semiconductor stocks and value maximum liquidity. However, the concentration on 25 securities means higher single-stock risks.

The iShares MSCI Global Semiconductors ETF is the more sensible core product for most investors, as it offers broader global diversification and thus distributes regional and company-specific risks more effectively. For those who want to consider sustainability criteria, the Amundi MSCI Semiconductors ESG offers an alternative with an ESG filter.

Regardless of which product is chosen, one thing applies: the semiconductor industry remains cyclical and volatile. The recent outflows on August 20, 2026 show that investors are critically watching the high valuations and dependence on a few mega-caps. Nervousness is likely to remain high ahead of the upcoming Nvidia quarterly results.