The folks at a 69-year-old, $111-billion-AUM (as of July 31) asset manager are expanding their thematic ETF suite with the addition of a passive fund targeting semiconductor companies that focus purely on chip design and development, but not manufacturing.

Yesterday, Nicholas Frasse, associate product manager at VanEck [profile], unveiled the launch of the VanEck Fabless Semiconductor ETF (SMHX on the Nasdaq). Van Eck Associates Corporation serves as administrator and investment advisor to the new fund.

SMHX's inception date was Tuesday (August 27), and by today the fund had about $618,000 in assets. It comes with an expense ratio of 35 basis points.

The new ETF is designed to track the MarketVector US Listed Fabless Semiconductor Index, and VanEck subsidiary MarketVector Indexes GmbH serves as index provider. SMHX's PM team includes: Griffin Driscoll, deputy portfolio manager; and Peter Liao, PM.

"For investors who are more focused on innovation than vertical integration and on R&D spending as opposed to manufacturing, SMHX could be an important part of a diversified equity portfolio," Frasse states. "We look forward to further educating all types of investors about the role fabless chip designers are playing in the powerful technological changes of the past few years and the advancements still to come."

The launch of SMHX comes almost 13 years after the VanEck team launched another semiconductor-focused ETF, that time by transforming HOLding Depository ReceiptS (HOLDRS) into the new VanEck Semiconductor ETF (SMH). That fund has since grown to $22.54 billion in assets, as of today.

The new SMHX's other service providers included: Dechert LLP as counsel; PricewaterhouseCoopers LLP as independent accounting firm; State Street Bank and Trust Company as custodian, fund accountant, securities lending agent, and transfer agent; and Van Eck Securities Corporation as distributor. 

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