(VVSM) VanEck Semiconductor - Ratings and Ratios

The VanEck Semiconductor UCITS ETF (XETRA:VVSM) is a Germany-domiciled exchange-traded fund designed to provide exposure to the global semiconductor sector. It tracks the Morningstar Global Technology Total Return Net USD Index, which focuses on companies involved in the production of semiconductors and related technologies. The fund is physically replicated, meaning it holds the underlying securities of the index rather than using derivatives.

From a technical perspective, the ETF is currently trading below its key moving averages, with the 20-day SMA at 30.42, 50-day SMA at 34.21, and 200-day SMA at 37.83. This indicates bearish momentum in the short to medium term. The Average True Range (ATR) of 1.44 suggests moderate volatility, while the average daily trading volume of 164,885 shares over the past 20 days reflects decent liquidity. The last price of 31.45 indicates a recent pullback from higher levels.

Fundamentally, the ETF has assets under management (AUM) of 1,789.58 million EUR, making it a sizeable fund in its category. The semiconductor industry is highly cyclical and sensitive to broader economic conditions, as well as geopolitical factors. Recent weakness in global tech demand has weighed on the sector, but long-term tailwinds such as the proliferation of AI, 5G, and IoT technologies remain supportive of growth.

Over the next three months, the ETF is expected to face headwinds from slowing global tech demand and elevated interest rates, which could further suppress valuations. The 20-day SMA of 30.42 and 50-day SMA of 34.21 suggest resistance levels that may cap upside in the near term. However, if the broader market stabilizes, the ETF could find support near its 200-day SMA of 37.83. On the fundamental side, the semiconductor industry is expected to experience near-term weakness due to inventory corrections and softer consumer electronics demand. However, the structural growth drivers of AI, autonomous vehicles, and industrial automation are likely to reassert themselves, providing a floor for valuations. Additionally, any easing of U.S.-China tensions could positively impact the sector.