SMH vs VYM
VanEck Semiconductor ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. SMH delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | SMH | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $60.9B | $81.6B | |
| Dividend Yield | 0.22% | 2.24% | |
| Holdings | 27 | 616 | |
| YTD Return | +50.13% | +15.34% | |
| 1Y Return | +95.56% | +23.24% | |
| 3Y Return (annualized) | +56.08% | +19.22% | |
| 5Y Return (annualized) | +34.42% | +12.21% | |
| Volatility (annualized) | 31.4% | 14.6% | |
| Max Drawdown | -85.5% | -58.8% | |
| Fund Family | VanEck | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 20, 2011 | Nov 10, 2006 |
SMH vs VYM Performance
VanEck Semiconductor ETF (SMH) is a ETF from VanEck and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SMH returned +95.56% while VYM returned +23.24%. Year to date, SMH is up 50.13% versus a gain of 15.34% for VYM.
Over three years, SMH compounded at +56.08% per year against +19.22% for VYM; over five years the annualized figures are +34.42% and +12.21% respectively. Across the full 20-year window we track, SMH has the edge at +11.22% annualized vs +7.04%. 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SMH charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, SMH currently yields 0.22% against 2.24% for VYM.
Holdings Overlap
SMH and VYM share 7 holdings out of 621 unique holdings combined, representing a 10.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SMH or VYM?
SMH has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, SMH or VYM?
Over the past year SMH returned +95.56% vs +23.24% for VYM, so SMH leads on 1-year performance. Over the longest common window we track (20 years), SMH annualized +11.22% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, SMH or VYM?
SMH has been the more volatile fund at 31.4% annualized versus 14.6% for VYM. Worst drawdown: SMH -85.5% vs VYM -58.8%.
Should I hold both SMH and VYM?
SMH and VYM have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SMH and VYM?
SMH and VYM share 7 common holdings with a 10.0% weight overlap. Combined, they hold 621 unique securities.
Which pays a higher dividend, SMH or VYM?
SMH yields 0.22% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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