SMH vs VGT: Head-to-Head Comparison
SMH vs VGT: VanEck Semiconductor ETF has an expense ratio of 0.35% while Vanguard Information Technology ETF charges 0.10%. SMH holds 25 securities vs VGT's 316. 5-year returns: 29.80% vs 21.80%.
Last updated: April 2026
Semiconductor
Quick Verdict
VGT edges out SMH with a stronger Beginner Suitability Score (8 vs 7). It offers lower fees for new investors.
Side-by-Side Comparison
| Metric | SMH | VGT |
|---|---|---|
| Expense Ratio | 0.35% | 0.10% |
| AUM | $20.0B | $78.0B |
| Dividend Yield | 0.50% | 0.70% |
| Holdings | 25 | 316 |
| 1-Year Return | 41.50% | 31.20% |
| 5-Year Return (Ann.) | 29.80% | 21.80% |
| 10-Year Return (Ann.) | 25.80% | 20.80% |
| Beta | 1.38 | 1.25 |
| P/E Ratio | 32.0 | 34.8 |
SMH 5-year annualized return is 29.80% compared to VGT's 21.80%. Over 10 years, SMH returned 25.80% vs VGT's 20.80%.
View data table
| Period | SMH Return | VGT Return |
|---|---|---|
| YTD | 4.50% | 3.80% |
| 1 Year | 41.50% | 31.20% |
| 3 Year | 21.50% | 14.50% |
| 5 Year | 29.80% | 21.80% |
| 10 Year | 25.80% | 20.80% |
Key Differences Between SMH and VGT
SMH (VanEck Semiconductor ETF) is a semiconductors fund managed by VanEck. SMH tracks the MVIS US Listed Semiconductor 25 Index, holding the 25 largest and most liquid semiconductor companies. Unlike SOXX, SMH is market-cap-weighted, which gives more influence to the biggest chipmakers like NVIDIA and TSMC. Beginners choosing between SMH and SOXX should know that SMH is more concentrated in mega-cap chip stocks, which has driven its stronger performance during the AI boom.
VGT (Vanguard Information Technology ETF) is a technology sector fund managed by Vanguard. VGT invests exclusively in U.S. information technology companies, from mega-cap giants like Apple and Microsoft to smaller software and semiconductor firms. It provides purer tech sector exposure than QQQ since it excludes non-tech companies like Amazon and Tesla. Beginners drawn to technology investing should understand that VGT offers concentrated sector exposure, which amplifies both gains in tech bull markets and losses during tech selloffs.
The most notable differences are in fees (0.35% vs 0.10%), number of holdings (25 vs 316), and 5-year returns (29.80% vs 21.80%).
SMH vs VGT multi-factor comparison: SMH has a 0.35% expense ratio, 29.80% 5-year return, 25 holdings, 1.38 beta, and 0.50% yield. VGT has 0.10% expense ratio, 21.80% 5-year return, 316 holdings, 1.25 beta, and 0.70% yield.
View data table
| Metric | SMH | VGT |
|---|---|---|
| Expense Ratio | 0.35% | 0.10% |
| 5-Year Return | 29.80% | 21.80% |
| Holdings | 25 | 316 |
| Beta | 1.38 | 1.25 |
| Dividend Yield | 0.50% | 0.70% |
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Holdings Overlap Analysis
18%
Holdings Overlap
SMH and VGT share only 18% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
SMH and VGT share 18% of their top holdings (low overlap). SMH has 25 total holdings and VGT has 316. Common holdings include NVDA, AVGO, AMD.
View data table
| Metric | SMH | VGT |
|---|---|---|
| Overlap | 18% | 18% |
| Unique Holdings | 82% | 82% |
| Total Holdings | 25 | 316 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
SMH
Fee cost: $2,930
VGT
Fee cost: $856
Over 20 years, the fee difference amounts to $2,074 on a $10,000 investment. VGT saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, SMH (0.35% fee) grows to $43,680 while VGT (0.10% fee) grows to $45,754. The fee difference costs $2,074.
View data table
| Year | SMH Value | VGT Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,457 | $14,625 |
| 10 | $20,900 | $21,390 |
| 15 | $30,214 | $31,284 |
| 20 | $43,680 | $45,754 |
Which One Should a Beginner Choose?
Choose SMH if: You want investors who want maximum exposure to the biggest winners in the semiconductor space, those who prefer a cap-weighted approach that includes global chip leaders like tsmc and asml, growth investors willing to accept extreme concentration for potentially higher returns. It's managed by VanEck with an expense ratio of 0.35%.
Choose VGT if: You want investors with high risk tolerance who want concentrated technology sector exposure, those who believe the tech sector will continue to outperform the broader market, long-term growth investors willing to accept higher volatility for potentially higher returns. It's managed by Vanguard with an expense ratio of 0.10%.
Can You Own Both SMH and VGT?
Absolutely! With only 18% overlap, SMH and VGT complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
Frequently Asked Questions
Should I buy SMH or VGT?▾
VGT edges out SMH with a stronger Beginner Suitability Score (8 vs 7). It offers lower fees for new investors. However, both are solid options. SMH is best for investors who want investors who want maximum exposure to the biggest winners in the semiconductor space, while VGT is better suited for investors with high risk tolerance who want concentrated technology sector exposure.
What is the difference between SMH and VGT?▾
SMH (VanEck Semiconductor ETF) tracks semiconductors investments with 25 holdings and a 0.35% expense ratio. VGT (Vanguard Information Technology ETF) focuses on technology sector with 316 holdings at 0.10%. Their top holdings overlap by 18%.
Can I own both SMH and VGT?▾
Yes! With only 18% holdings overlap, SMH and VGT complement each other well. Owning both gives you broader diversification.