After providing a Group IV semiconductor nanowire on a substrate, a sacrificial material portion is formed on sidewalls of a bottom portion of the Group IV semiconductor nanowire. A sacrificial gate layer is then formed over the sacrificial material portion to laterally surround a middle portion of the Group IV semiconductor nanowire, followed by forming a sacrificial spacer on sidewalls of a remaining top portion of the Group IV semiconductor nanowire. After replacing the Group IV semiconductor nanowire with a Group III-V compound semiconductor nanowire, the sacrificial material portion, sacrificial spacer and sacrificial gate layer are replaced by a first epitaxial semiconductor region which serves as a bottom source/drain region, a second epitaxial semiconductor region which serves as a top source/drain region, and a functional gate structure, respectively.