SMH vs SPY
VanEck Semiconductor ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, SMH or SPY?
Large Cap Growth against Large Cap Blend.
SPY has a lower expense ratio. SMH led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 71.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SMH | SPY |
|---|---|---|
| Expense Ratio | 0.35% | 0.09%Best |
| AUM | $60.9B | $804.7B |
| Dividend Yield | 0.20% | 0.98% |
| Holdings | 26 | 505 |
| YTD Return | +52.30%Best | +12.47% |
| 1Y Return | +87.64%Best | +17.51% |
| 3Y Return (annualized) | +56.89%Best | +21.18% |
| 5Y Return (annualized) | +33.75%Best | +12.88% |
| Volatility (annualized) | 31.4% | 15.1%Best |
| Max Drawdown | -85.5% | -56.5%Best |
| $10,000 over 5 years | $42,802Best | $18,327 |
| Top 10 Weight | 71.5% | 38.0%Best |
| Fund Family | VanEck | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Dec 20, 2011 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: May 5, 2000 to Sep 11, 2026 (26.4 years).
SMH vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 26.4 years both funds cover.
SMH vs SPY Performance
VanEck Semiconductor ETF (SMH) is an ETF from VanEck and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year SMH returned +87.64% while SPY returned +17.51%. Year to date, SMH is up 52.30% versus a gain of 12.47% for SPY.
Over three years, SMH compounded at +56.89% per year against +21.18% for SPY; over five years the annualized figures are +33.75% and +12.88% respectively. Across the full 26-year window we track, SMH has the edge at +11.25% annualized vs +6.85%.
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 SPY. 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 -56.5% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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
SMH charges 0.35% per year while SPY charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, SMH currently yields 0.20% against 0.98% for SPY.
Holdings Overlap
82.7% of SMH's money is in holdings SPY also owns. 17.7% of SPY's money is in holdings SMH also owns.
Most of SMH is already inside SPY. Owning both mostly buys the same companies twice.
20 positions in common, counted across the 25 positions we hold weights for in SMH and 504 in SPY, against full books of 26 and 505.
What only one of them owns
Our book lists 474 positions for SPY that do not appear in our book for SMH (81.8% of the fund), and 1 for SMH that do not appear in SPY (1.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SMH | Weight in SPY | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 22.11% | 7.71% | 14.40% |
| AVGOBroadcom Inc | 6.72% | 2.97% | 3.75% |
| AMDAdvanced Micro Devices Inc. | 5.38% | 1.27% | 4.11% |
| MUMicron Technology, Inc. | 5.06% | 1.51% | 3.55% |
| AMATApplied Materials, Inc. | 4.89% | 0.65% | 4.24% |
| INTCIntel Corp. | 4.29% | 0.72% | 3.57% |
| LRCXLam Research Corp | 4.34% | 0.60% | 3.74% |
| TXNTexas Instruments, Inc | 4.48% | 0.39% | 4.09% |
| ADIAnalog Devices, Inc. | 4.37% | 0.28% | 4.09% |
| KLACKla Corp. | 4.10% | 0.38% | 3.72% |
82.7% of SMH is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SMH or SPY?
SMH has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, SMH or SPY?
Over the past year SMH returned +87.64% vs +17.51% for SPY, so SMH leads on 1-year performance. Over the longest common window we track (26 years), SMH annualized +11.25% vs +6.85% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SMH or SPY?
SMH has been the more volatile fund at 31.4% annualized versus 15.1% for SPY. Worst drawdown: SMH -85.5% vs SPY -56.5%.
Should I hold both SMH and SPY?
SMH and SPY have a monthly-return correlation of 0.77, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between SMH and SPY?
82.7% of SMH's money is in holdings SPY also owns. 17.7% of SPY's is in holdings SMH also owns. They hold 20 positions in common, counted across the 25 positions we hold weights for in SMH and 504 in SPY.
Which pays a higher dividend, SMH or SPY?
SMH yields 0.20% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.
Is SPY better than SMH?
SPY has a lower expense ratio. SMH led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 71.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.