IVV vs SMH
iShares Core S&P 500 ETF vs VanEck Semiconductor ETF
Quick Verdict
IVV has a lower expense ratio. SMH delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | IVV | SMH | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.35% | |
| AUM | $907.0B | $60.9B | |
| Dividend Yield | 1.10% | 0.22% | |
| Holdings | 508 | 27 | |
| YTD Return | +12.71% | +50.13% | |
| 1Y Return | +21.89% | +95.56% | |
| 3Y Return (annualized) | +22.08% | +56.08% | |
| 5Y Return (annualized) | +12.96% | +34.42% | |
| Volatility (annualized) | 15.1% | 31.4% | |
| Max Drawdown | -56.5% | -85.5% | |
| Fund Family | iShares by BlackRock (US) | VanEck | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Dec 20, 2011 |
IVV vs SMH Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and VanEck Semiconductor ETF (SMH) is a ETF from VanEck. Over the past year IVV returned +21.89% while SMH returned +95.56%. Year to date, IVV is up 12.71% versus a gain of 50.13% for SMH.
Over three years, IVV compounded at +22.08% per year against +56.08% for SMH; over five years the annualized figures are +12.96% and +34.42% respectively. Across the full 26-year window we track, SMH has the edge at +11.22% annualized vs +7.00%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMH has been the more volatile fund, with annualized monthly volatility of 31.4% compared with 15.1% for IVV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -56.5% for IVV and -85.5% for SMH. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while SMH charges 0.35%. On a $10,000 position that is $3 vs $35 annually, a gap of $32 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 0.22% for SMH.
Holdings Overlap
IVV and SMH share 19 holdings out of 511 unique holdings combined, representing a 17.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or SMH?
IVV has an expense ratio of 0.03% while SMH charges 0.35%. IVV is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, IVV or SMH?
Over the past year IVV returned +21.89% vs +95.56% for SMH, so SMH leads on 1-year performance. Over the longest common window we track (26 years), IVV annualized +7.00% vs +11.22% for SMH. Past performance does not guarantee future results.
Which is riskier, IVV or SMH?
SMH has been the more volatile fund at 31.4% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs SMH -85.5%.
Should I hold both IVV and SMH?
IVV and SMH have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and SMH?
IVV and SMH share 19 common holdings with a 17.5% weight overlap. Combined, they hold 511 unique securities.
Which pays a higher dividend, IVV or SMH?
IVV yields 1.10% while SMH yields 0.22%, so IVV currently pays the higher dividend yield.
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