You'd Invested Just $1,000 in SMH 5 Years Ago, Here's What You'd Have Today | The Motley Fool

A hypothetical $1,000 investment in the VanEck Semiconductor ETF (SMH) five years ago would be worth about $4,840 today. The fund has delivered a total return of 384% over that period, driven largely by price gains rather than dividends. Top contributors include Nvidia, Taiwan Semiconductor Manufacturing, Intel, and Broadcom, whose weights boosted performance. The annualized return exceeds 37%, underscoring AI infrastructure and cloud computing demand. Valuations remain high but not excessive, suggesting momentum could persist if execution matches demand. Future gains depend on whether semiconductor firms can sustain demand and deliver on growth expectations.