VanEck Semiconductor ETF

• A blockchain token designed to track the price of VanEck Semiconductor ETF (NASDAQ: SMH), an exchange-traded fund.

• It is not a fund unit. Holding the token does not make you a shareholder of the fund and confers no rights against the fund or its manager.

• It offers fractional, round-the-clock price exposure without a foreign brokerage account.

• Issuer: VanEck

• Launched: December 2011

• Index: MVIS US Listed Semiconductor 25

• Listed on: Nasdaq (SMH)

• Category: Sector equity fund (semiconductors)

• SMH tracks an index of leading semiconductor companies.

• It is highly concentrated, with the largest few holdings representing a substantial share of the fund.

• Semiconductors are cyclical, so the fund carries more sector risk than a broad market index.

• The fund holds about 25 semiconductor companies.

• NVIDIA, TSMC and Broadcom are among the largest holdings.

• It includes foreign companies listed in the US.

• You get price exposure to the underlying instrument.

• You do not get shareholder voting rights.

• Dividend or distribution treatment depends on the issuer's structure and is often not passed through.

• You take on issuer and custodian risk in addition to the price risk of the underlying.

Pros:

• It is focused and liquid.

• It includes global chip leaders.

• It has a long track record.

Cons:

• It is highly concentrated.

• Semiconductors are cyclical.

• It excludes chipmakers not listed in the US, such as Samsung and SK hynix.

• Counterparty risk: if the issuer or custodian fails, the backing may not be recoverable.

• Tracking risk: the token price can diverge from the underlying, particularly outside US market hours when the underlying does not trade.

• Liquidity risk: on-chain liquidity is thinner than the underlying market, so spreads can widen sharply.

• Regulatory risk: India does not yet have a settled framework for tokenised equities, and tax treatment remains unclear.

• Price risk specific to the underlying instrument.