The SEMI ETF can be described as the “Picks & Shovels ETF Play” providing exposure to the world’s leading semiconductor companies, spanning chip designers, manufacturers, and equipment providers, with heavyweights like NVIDIA, TSM and ASML Holdings (NASDAQ:ASML) major holdings. In simple terms, no AI model gets trained, no data centre gets built, and no smart device gets made without the chips SEMI’s holdings produce, making it the most direct play on the raw computing power driving the entire AI buildout.
If the AI buildout continues to accelerate, this is where the capex flows first. The ETF holds 31 global stocks, with more than 60% exposure to US names, positioning it at the pointy end of the AI infrastructure cycle. It has already delivered ~36% in 2026, and we see scope for further upside, provided hyperscaler spending remains robust. With fees of 0.45%, it offers a solid way for local investors to gain exposure – the key risk remains any slowdown in US big tech investment in the quarters ahead but as we’ve seen this week, there’s no sign yet.
- We like the SEMI ETF through 2026, but from a risk/reward perspective, would leave some flexibility to add into the next ~$3-4 pullback.
MM is bullish towards the SEMI around $31
Add To Hit List
