SMH vs SOXX: VanEck Semiconductor ETF vs iShares Semiconductor ETF Comparison
Compare SMH (VanEck Semiconductor ETF) and SOXX (iShares Semiconductor ETF) by expense ratio, dividend yield, holdings, and more.
Key Differences
- 1Dividend yield: SOXX 0.69% vs SMH 0.5%
- 2Holdings: SMH 26 vs SOXX 31
- 3Issuer: SMH (VanEck) vs SOXX (BlackRock(iShares))
Conclusion
SMH and SOXX each have different strengths, so the choice depends on your investment objectives. Choose the one with lower fees if cost is a priority, or the one with higher yield if income is your goal.
| Category | SMH | SOXX |
|---|---|---|
| Fund Name | VanEck Semiconductor ETF | iShares Semiconductor ETF |
| Current Price | ... | ... |
| Category | Sector ETFs | Sector ETFs |
| Expense Ratio | 0.35% | 0.35% |
| Dividend Yield | 0.5% | 0.69% |
| Holdings | 26 | 31 |
SMH Top Holdings
- 1. Nvidia
- 2. TSMC
- 3. Broadcom
- 4. ASML
SOXX Top Holdings
- 1. Broadcom
- 2. Nvidia
- 3. Intel
- 4. AMD
- 5. Qualcomm
SMH Features
- •Semiconductor investing
- •Benefits from AI
- •Concentrated portfolio
- •Global semiconductors
SOXX Features
- •Semiconductor specialized
- •High growth potential
- •Benefits from AI
- •Cyclical
Pros & Cons
SMH
Advantages
- ✓ Benefits from AI growth
- ✓ Core semiconductor companies
- ✓ High growth rate
Disadvantages
- ⚠ Sector concentration risk
- ⚠ Cyclical volatility
- ⚠ High valuation
SOXX
Advantages
- ✓ Benefits from AI/data center growth
- ✓ Technological innovation
- ✓ High growth potential
Disadvantages
- ⚠ Extreme volatility
- ⚠ Business cycle
- ⚠ Geopolitical risk
Investment Strategy
Best For: SMH
Satellite strategy at 5-10%; alternative to SOXX
Best For: SOXX
Growth portfolio; cycle timing important; keep below 10%
Detailed Analysis
SMH (VanEck Semiconductor ETF) and SOXX (iShares Semiconductor ETF) Both belong to the Sector ETFs category, covering a similar investment area but with different strategies. 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%, its top holdings include Nvidia, TSMC, Broadcom. Key features include Semiconductor investing, Benefits from AI, with Benefits from AI growth being a major advantage. SOXX: iShares Semiconductor ETF (SOXX) 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 0.69%. The portfolio holds 31 securities. With an expense ratio of 0.35% and dividend yield of 0.69%, top holdings include Broadcom, Nvidia, Intel. Notable features are Semiconductor specialized, High growth potential, with Benefits from AI/data center growth as a core strength.
Investment Recommendation
SMH is suitable for Satellite strategy at 5-10%; alternative to SOXX, while SOXX is suitable for Growth portfolio; cycle timing important; keep below 10%. Since both ETFs are in the same category, choosing one for your portfolio is more efficient. Base your decision on expense ratio, liquidity, and issuer preference. 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 SMH and SOXX 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.
SMH vs SOXX Investment Guide
Both SMH and SOXX are popular US ETFs, but they differ in investment strategy and portfolio role. SMH has an expense ratio of 0.35%, while SOXX charges 0.35%, Both ETFs share the same cost structure. In terms of dividend yield, SMH offers 0.5% while SOXX offers 0.69%, making SOXX 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.