SMH vs SOXX
VanEck Semiconductor ETF vs iShares Semiconductor ETF
Quick Verdict
SOXX has a lower expense ratio. SOXX delivered stronger 1-year returns. SOXX offers more diversification with 34 holdings.
Side-by-Side Comparison
| Metric | SMH | SOXX | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.33% | |
| AUM | $60.9B | $43.0B | |
| Dividend Yield | 0.22% | 0.29% | |
| Holdings | 27 | 34 | |
| YTD Return | +53.50% | +67.68% | |
| 1Y Return | +93.10% | +110.03% | |
| 3Y Return (annualized) | +56.75% | +48.46% | |
| 5Y Return (annualized) | +34.14% | +28.35% | |
| Volatility (annualized) | 31.4% | 30.4% | |
| Max Drawdown | -85.5% | -70.2% | |
| Fund Family | VanEck | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Dec 20, 2011 | Jul 10, 2001 |
SMH vs SOXX Performance
VanEck Semiconductor ETF (SMH) is a ETF from VanEck and iShares Semiconductor ETF (SOXX) is a ETF from iShares by BlackRock (US). Over the past year SMH returned +93.10% while SOXX returned +110.03%. Year to date, SMH is up 53.50% versus a gain of 67.68% for SOXX.
Over three years, SMH compounded at +56.75% per year against +48.46% for SOXX; over five years the annualized figures are +34.14% and +28.35% respectively. Across the full 25-year window we track, SOXX has the edge at +13.95% annualized vs +11.30%. 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 30.4% for SOXX. 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 -85.5% for SMH and -70.2% for SOXX. 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 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SMH charges 0.35% per year while SOXX charges 0.33%. On a $10,000 position that is $35 vs $33 annually, a gap of $2 per year that compounds over a long holding period. On income, SMH currently yields 0.22% against 0.29% for SOXX.
Holdings Overlap
SMH and SOXX share 23 holdings out of 33 unique holdings combined, representing a 72.7% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, SMH or SOXX?
SMH has an expense ratio of 0.35% while SOXX charges 0.33%. SOXX is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, SMH or SOXX?
Over the past year SMH returned +93.10% vs +110.03% for SOXX, so SOXX leads on 1-year performance. Over the longest common window we track (25 years), SMH annualized +11.30% vs +13.95% for SOXX. Past performance does not guarantee future results.
Which is riskier, SMH or SOXX?
SMH has been the more volatile fund at 31.4% annualized versus 30.4% for SOXX. Worst drawdown: SMH -85.5% vs SOXX -70.2%.
Should I hold both SMH and SOXX?
SMH and SOXX have a monthly-return correlation of 0.98, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between SMH and SOXX?
SMH and SOXX share 23 common holdings with a 72.7% weight overlap. Combined, they hold 33 unique securities.
Which pays a higher dividend, SMH or SOXX?
SMH yields 0.22% while SOXX yields 0.29%, so SOXX currently pays the higher dividend yield.
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