SMH vs VGT
VanEck Semiconductor ETF vs Vanguard Information Technology ETF
Which is better, SMH or VGT?
SMH has been ahead.
VGT has a lower expense ratio. SMH led over 1Y, 3Y, 5Y and the full window. VGT is less concentrated, with 63.6% of the fund in its ten largest positions against 67.9%.
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 | VGT |
|---|---|---|
| Expense Ratio | 0.35% | 0.09%Best |
| AUM | $72.4B | $154.5B |
| Dividend Yield | 0.20% | 0.40% |
| Holdings | 54 | 324 |
| YTD Return | +29.56%Best | +17.35% |
| 1Y Return | +35.21%Best | +13.80% |
| 3Y Return (annualized) | +46.51%Best | +26.61% |
| 5Y Return (annualized) | +27.77%Best | +15.63% |
| Volatility (annualized) | 25.9% | 19.6%Best |
| Max Drawdown | -64.8% | -54.8%Best |
| $10,000 over 5 years | $34,052Best | $20,671 |
| Top 10 Weight | 67.9% | 63.6%Best |
| Fund Family | VanEck | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Dec 20, 2011 | Jan 26, 2004 |
Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2004 to Nov 10, 2026 (22.8 years).
SMH vs VGT 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 22.8 years both funds cover.
SMH vs VGT Performance
VanEck Semiconductor ETF (SMH) is an ETF from VanEck and Vanguard Information Technology ETF (VGT) is an ETF from Vanguard (US). Over the past year SMH returned +35.21% while VGT returned +13.80%. Year to date, SMH is up 29.56% versus a gain of 17.35% for VGT.
Over three years, SMH compounded at +46.51% per year against +26.61% for VGT; over five years the annualized figures are +27.77% and +15.63% respectively. Across the full 23-year window we track, SMH has the edge at +16.30% annualized vs +13.72%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMH has been the more volatile fund, with annualized monthly volatility of 25.9% compared with 19.6% for VGT. 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 -64.8% for SMH and -54.8% for VGT. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SMH charges 0.35% per year while VGT 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 0.40% for VGT.
Holdings Overlap
80.5% of SMH's money is in holdings VGT also owns. 41.3% of VGT's money is in holdings SMH also owns.
Most of SMH is already inside VGT. Owning both mostly buys the same companies twice.
20 positions in common, counted across the 25 positions we hold weights for in SMH and 318 in VGT, against full books of 54 and 324.
What only one of them owns
Our book lists 254 positions for VGT that do not appear in our book for SMH (58.0% of the fund), and 2 for SMH that do not appear in VGT (4.8%).
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 VGT | Difference |
|---|---|---|---|
| NVDANvidia Corp | 20.06% | 17.58% | 2.48% |
| AVGOBroadcom Inc | 5.55% | 4.11% | 1.44% |
| AMDAdvanced Micro Devices Inc | 5.57% | 3.67% | 1.90% |
| MUMicron Technology, Inc. | 4.68% | 4.45% | 0.23% |
| INTCIntel Corp. | 4.16% | 1.98% | 2.18% |
| TXNTexas Instrument Inc | 4.95% | 0.98% | 3.97% |
| AMATApplied Material | 4.25% | 1.53% | 2.72% |
| LRCXLam Research Corp | 4.07% | 1.55% | 2.52% |
| KLACKla Corp. | 4.42% | 0.98% | 3.44% |
| MRVLMarvell Technology Inc | 4.44% | 0.88% | 3.56% |
80.5% of SMH is already inside VGT.
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 VGT?
SMH has an expense ratio of 0.35% while VGT charges 0.09%. VGT is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, SMH or VGT?
Over the past year SMH returned +35.21% vs +13.80% for VGT, so SMH leads on 1-year performance. Over the longest common window we track (23 years), SMH annualized +16.30% vs +13.72% for VGT. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SMH or VGT?
SMH has been the more volatile fund at 25.9% annualized versus 19.6% for VGT. Worst drawdown: SMH -64.8% vs VGT -54.8%.
Should I hold both SMH and VGT?
SMH and VGT have a monthly-return correlation of 0.86, 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 VGT?
80.5% of SMH's money is in holdings VGT also owns. 41.3% of VGT'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 318 in VGT.
Which pays a higher dividend, SMH or VGT?
SMH yields 0.20% while VGT yields 0.40%, so VGT currently pays the higher dividend yield.
Is VGT better than SMH?
VGT has a lower expense ratio. SMH led over 1Y, 3Y, 5Y and the full window. VGT is less concentrated, with 63.6% of the fund in its ten largest positions against 67.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.