TruWealth Advisors Dumps $28 Million in Semiconductor ETF — Here's What It Means as Nvidia and TSMC Soar
Key Points
TruWealth sold 93,960 shares of SMH in the third quarter, according to the firm's latest SEC disclosure.
The transaction represented 1.4% of TruWealth Advisors’ reportable AUM for the period.
Post-sale, TruWealth Advisors holds 13,557 shares valued at $4.4 million—placing the stake outside TruWealth's top five holdings.
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On Monday, TruWealth Advisors disclosed the sale of 93,960 shares of the VanEck Semiconductor ETF (NASDAQ:SMH) during the third quarter.
What happened
According to a recent SEC filing dated Oct. 6, TruWealth Advisors reduced its position in the VanEck Semiconductor ETF (NASDAQ:SMH) by 93,960 shares during the third quarter, leaving a remaining balance of 13,557 shares. The shares sold had an estimated value of approximately $27.8 million. The post-transaction SMH position is valued at about $4.4 million as of Friday.
What else to know
This was a sell transaction; the post-sale SMH stake represents 0.2% of the fund’s nearly $2 billion in reportable U.S. equity assets.
Top holdings after the filing:
- FBND: $124,171,190 (6.3% of AUM)
- VTI: $110,398,167 (5.6% of AUM)
- PYLD: $103,494,006 (5.2% of AUM)
- JAAA: $103,490,296 (5.2% of AUM)
- BSCS: $90,201,531 (4.6% of AUM)
As of Tuesday morning, SMH shares were priced at $343.50. Up about 38.5% over the year and outpacing the S&P 500 by about 20 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of Tuesday morning) | $343.50 |
| AUM | $31.6B |
| Dividend yield | 0.3% |
| 1-year total return | 38.5% |
Company snapshot
- SMH tracks a benchmark index of U.S. exchange-listed semiconductor companies
- Holds a portfolio including medium-cap and select foreign firms
- Operates as a passively managed, non-diversified ETF
The VanEck Semiconductor ETF provides targeted exposure to the semiconductor industry, offering institutional investors access to technology hardware and chip manufacturing. Its focus on capital appreciation is reflected in its low dividend yield and robust one-year total return.
Foolish take
TruWealth Advisors’ $27.8 million sale of VanEck’s Semiconductor ETF (SMH) looks more like portfolio rebalancing than pessimism. The fund has soared 38.5% in 2025, outpacing the S&P 500 by roughly 20 points as semiconductor demand fuels one of the market’s strongest secular trends.
SMH tracks the MVIS U.S. Listed Semiconductor 25 Index, a concentrated basket of chipmakers and equipment suppliers. The ETF’s top holdings include Nvidia (18.2%), up 47% over the past year, and Taiwan Semiconductor (10.1%), which has surged 63% amid record chip output and AI-driven demand. Other heavyweights like Broadcom, ASML, and AMD round out the portfolio, making SMH a pure play on the industry’s innovation cycle.
With total assets near $34 billion and a 0.35% expense ratio, SMH remains a go-to vehicle for investors seeking targeted exposure to the chip boom. While near-term volatility is inevitable given rich valuations and cyclical demand, the longer-term picture still favors growth. For investors bullish on the AI and cloud infrastructure build-out, SMH remains one of the cleanest—and most efficient—ways to stay plugged in.
Glossary
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
Reportable AUM: The portion of a firm's assets under management required to be disclosed in regulatory filings.
Stake: The ownership interest or position held in a particular investment or company.
Top holdings: The largest investments within a fund's portfolio, typically by market value.
Dividend yield: Annual dividends paid by an investment, expressed as a percentage of its price.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Passively managed ETF: A fund that aims to replicate the performance of a specific index rather than actively selecting securities.
Expense ratio: The annual fee, expressed as a percentage of assets, charged by a fund to cover operating costs.
Non-diversified structure: A fund that invests in a limited number of holdings, increasing exposure to specific sectors or industries.
Capital appreciation: The increase in the value of an investment or asset over time.
Institutional investors: Organizations such as pension funds, endowments, or asset managers that invest large sums of money.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia, Taiwan Semiconductor Manufacturing, and Vanguard Total Stock Market ETF. The Motley Fool has a disclosure policy.
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