A Double Blow: Jobs Data and Broadcom’s Guidance Send VanEck Chip ETF Tumbling

The VanEck Semiconductor UCITS ETF plunged 7.95%, hit by Broadcom's disappointing revenue outlook and strong U.S. jobs data that revived rate-hike fears.

The VanEck Semiconductor UCITS ETF suffered one of its worst sessions in months on Friday, plunging 7.95% to close at €92.04. The sell-off was driven by a potent combination—an underwhelming revenue outlook from key holding Broadcom and surprisingly strong U.S. employment figures that reignited fears of prolonged tight monetary policy.

Broadcom’s quarterly numbers, released late Thursday, initially appeared solid. The company posted second-quarter revenue of $22.187 billion, up 48% year-on-year, with net profit climbing to $9.310 billion. Its AI-related revenue surged 143% to $10.8 billion. Yet the market latched onto the unchanged revenue guidance for the coming fiscal years, which fell short of the sky-high expectations baked into chip valuations. The stock slid, and because Broadcom accounts for 8.33% of the ETF’s portfolio—the third-largest holding—the damage was immediate and amplified.

Compounding the sector’s woes, the U.S. Labor Department reported 172,000 new nonfarm payrolls in May, roughly double the consensus estimate. The data pushed bond yields higher and revived fears that the Federal Reserve will keep rates elevated for longer. For richly valued growth stocks, especially those riding the AI wave, rising discount rates are a direct headwind. The Nasdaq Composite lost 4.2% on Friday, while the S&P 500 shed 2.6%. Heavyweights such as Nvidia, Intel, and Advanced Micro Devices each dropped between 6% and 13%.

The VanEck fund is particularly vulnerable to these swings because of its concentrated structure. As of the end of May, it held just 25 stocks, with the top ten positions representing 79.80% of assets. Micron Technology led at 14.33%, followed by AMD at 12.23% and Broadcom at 8.33%. Intel (8.02%), Taiwan Semiconductor Manufacturing (7.51%), ASML (7.40%), and Nvidia (7.23%) rounded out the largest stakes. When nerves fray across the chip sector, the lack of diversification amplifies losses.

The correction comes after an extraordinary run. The ETF hit a 52-week high of €102.98 on June 3—just two days before the rout—leaving it 10.62% below that peak. Still, year-to-date gains remain a stunning 67.47%, and the fund trades 17.32% above its 50-day moving average and 54.41% above its 200-day average. The relative strength index of 55.1 suggests the pullback has cooled overbought conditions rather than signaled panic.

Chart watchers now have clear levels to monitor. On the upside, the €102.98 high looms as the key resistance. To the downside, the 50-day moving average at €78.45 provides support. The fund’s 30-day volatility of 46.22% underscores how quickly moves can escalate in this segment.

Comparatively, the VanEck product’s 0.35% total expense ratio is on par with rival ETFs from iShares and HSBC. The difference lies in its heavier exposure to large, liquid U.S. chip and equipment makers—a design that supercharges returns in strong AI rallies but leaves little buffer when sentiment turns. Friday’s double blow of macro and micro disappointments tested that vulnerability to the limit.