GLD vs SMH: SPDR Gold Shares vs VanEck Semiconductor ETF Comparison
Compare GLD (SPDR Gold Shares) and SMH (VanEck Semiconductor ETF) by expense ratio, dividend yield, holdings, and more.
Key Differences
- 1Expense ratio: SMH 0.35% vs GLD 0.4% (SMH is 0.05%p cheaper)
- 2Dividend yield: SMH 0.5% vs GLD 0%
- 3Category: GLD is Bonds & Commodities, SMH is Sector ETFs
- 4Holdings: GLD 1 vs SMH 26
- 5Issuer: GLD (State Street(SPDR)) vs SMH (VanEck)
Conclusion
SMH has an overall advantage with lower expense ratio (0.35% vs 0.4%), higher dividend yield (0.5% vs 0%). However, GLD also offers Portfolio hedge, making it worth considering depending on your portfolio goals.
| Category | GLD | SMH |
|---|---|---|
| Fund Name | SPDR Gold Shares | VanEck Semiconductor ETF |
| Current Price | ... | ... |
| Category | Bonds & Commodities | Sector ETFs |
| Expense Ratio | 0.4% | 0.35% |
| Dividend Yield | 0% | 0.5% |
| Holdings | 1 | 26 |
GLD Top Holdings
- 1. Physical Gold
SMH Top Holdings
- 1. Nvidia
- 2. TSMC
- 3. Broadcom
- 4. ASML
GLD Features
- •Gold investing
- •Safe-haven asset
- •Inflation hedge
- •Crisis response
SMH Features
- •Semiconductor investing
- •Benefits from AI
- •Concentrated portfolio
- •Global semiconductors
Pros & Cons
GLD
Advantages
- ✓ Portfolio hedge
- ✓ Inflation defense
- ✓ Benefits from dollar weakness
Disadvantages
- ⚠ No dividends
- ⚠ Storage costs
- ⚠ Opportunity cost
SMH
Advantages
- ✓ Benefits from AI growth
- ✓ Core semiconductor companies
- ✓ High growth rate
Disadvantages
- ⚠ Sector concentration risk
- ⚠ Cyclical volatility
- ⚠ High valuation
Investment Strategy
Best For: GLD
Allocate 5-10% for crisis hedging; increase during economic uncertainty
Best For: SMH
Satellite strategy at 5-10%; alternative to SOXX
Detailed Analysis
GLD (SPDR Gold Shares) and SMH (VanEck Semiconductor ETF) They belong to different categories — Bonds & Commodities and Sector ETFs — representing distinct investment areas. GLD: SPDR Gold Shares (GLD) is an exchange-traded fund that provides investors with exposure to bonds, gold, and other commodities. It carries an expense ratio of 0.40%. The portfolio holds 1 securities. With an expense ratio of 0.4% and dividend yield of 0%, its top holdings include Physical Gold. Key features include Gold investing, Safe-haven asset, with Portfolio hedge being a major advantage. SMH: VanEck Semiconductor ETF (SMH) is an exchange-traded fund that provides investors with exposure to specific industry sectors. It carries an expense ratio of 0.35%. The fund offers a dividend yield of approximately 0.50%. The portfolio holds 26 securities. With an expense ratio of 0.35% and dividend yield of 0.5%, top holdings include Nvidia, TSMC, Broadcom. Notable features are Semiconductor investing, Benefits from AI, with Benefits from AI growth as a core strength. In terms of expense ratio, SMH is 0.05%p cheaper, which can lead to significant cost savings through compounding over long-term investment. Over 20 years with a $100,000 investment, this difference can amount to thousands of dollars.
Investment Recommendation
GLD is suitable for Allocate 5-10% for crisis hedging; increase during economic uncertainty, while SMH is suitable for Satellite strategy at 5-10%; alternative to SOXX. Since they are in different categories, holding both can provide portfolio diversification benefits. Adjust the allocation based on your risk tolerance and investment horizon. For beginners, we recommend a core-satellite strategy: choose a low-cost, well-diversified ETF as your core holding, and allocate the rest to satellite positions.
Key Summary
Both GLD and SMH are excellent ETFs for their respective investment objectives. The key is to choose based on your investment goals, time horizon, and risk tolerance. Rather than focusing on a single metric (dividend yield, fees, etc.), evaluate from a holistic portfolio perspective. Use our rebalancing calculator to easily determine the optimal asset allocation including both ETFs.
GLD vs SMH Investment Guide
Both GLD and SMH are popular US ETFs, but they differ in investment strategy and portfolio role. GLD has an expense ratio of 0.4%, while SMH charges 0.35%, giving SMH a cost advantage. In terms of dividend yield, GLD offers 0% while SMH offers 0.5%, making SMH the better choice for income investors.
When choosing between the two, consider your investment goals, time horizon, and risk tolerance. If long-term growth is your priority, favor the ETF with lower fees and broader diversification. If you need steady cash flow, the higher-yielding ETF may be more suitable. You can also hold both in your portfolio for a complementary approach.
Regardless of which ETF you choose, maintaining your target allocation through regular rebalancing is key to long-term performance. Review your portfolio quarterly or semi-annually, and adjust if weights have drifted significantly. Our rebalancing calculator can automatically determine the buy/sell quantities for each holding.
5 Things to Check When Comparing ETFs
Expense Ratio: Even a 0.1% difference in fees can translate to thousands of dollars over long-term investing. When two ETFs track a similar index, the lower-cost option has the edge.
Tracking Index & Holdings: Even ETFs in the same category may track different indices. Review the top holdings and sector weights to find the best fit for your investment goals.
Dividend Policy: Compare dividend frequency (monthly vs quarterly), yield, and dividend growth rate. Monthly dividend ETFs may be preferable if you need regular cash flow.
Trading Volume & Liquidity: Sufficient daily trading volume ensures you can buy and sell at fair prices. Low-volume ETFs may have wider bid-ask spreads, increasing your trading costs.
Portfolio Role: Determine whether the ETF serves as a core or satellite holding in your portfolio, and size your position accordingly.