SOXX vs SMH: Head-to-Head Comparison
SOXX vs SMH: iShares Semiconductor ETF has an expense ratio of 0.35% while VanEck Semiconductor ETF charges 0.35%. SOXX holds 30 securities vs SMH's 25. 5-year returns: 28.20% vs 29.80%.
Last updated: April 2026
Semiconductor
Quick Verdict
Both ETFs score equally well for beginners (7/10). Your choice depends on your specific investment goals.
Side-by-Side Comparison
| Metric | SOXX | SMH |
|---|---|---|
| Expense Ratio | 0.35% | 0.35% |
| AUM | $14.0B | $20.0B |
| Dividend Yield | 0.60% | 0.50% |
| Holdings | 30 | 25 |
| 1-Year Return | 38.50% | 41.50% |
| 5-Year Return (Ann.) | 28.20% | 29.80% |
| 10-Year Return (Ann.) | 24.50% | 25.80% |
| Beta | 1.35 | 1.38 |
| P/E Ratio | 30.5 | 32.0 |
SOXX 5-year annualized return is 28.20% compared to SMH's 29.80%. Over 10 years, SOXX returned 24.50% vs SMH's 25.80%.
View data table
| Period | SOXX Return | SMH Return |
|---|---|---|
| YTD | 4.20% | 4.50% |
| 1 Year | 38.50% | 41.50% |
| 3 Year | 19.80% | 21.50% |
| 5 Year | 28.20% | 29.80% |
| 10 Year | 24.50% | 25.80% |
Key Differences Between SOXX and SMH
SOXX (iShares Semiconductor ETF) is a semiconductors fund managed by BlackRock. SOXX tracks the ICE Semiconductor Index, investing in 30 of the largest U.S.-listed semiconductor companies that design and manufacture chips. Semiconductors power everything from smartphones to data centers to AI systems. Beginners interested in the chip industry find SOXX appealing because it provides diversified exposure to this critical technology subsector rather than betting on a single chipmaker.
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.
The most notable differences are in fees (0.35% vs 0.35%), number of holdings (30 vs 25), and 5-year returns (28.20% vs 29.80%).
SOXX vs SMH multi-factor comparison: SOXX has a 0.35% expense ratio, 28.20% 5-year return, 30 holdings, 1.35 beta, and 0.60% yield. SMH has 0.35% expense ratio, 29.80% 5-year return, 25 holdings, 1.38 beta, and 0.50% yield.
View data table
| Metric | SOXX | SMH |
|---|---|---|
| Expense Ratio | 0.35% | 0.35% |
| 5-Year Return | 28.20% | 29.80% |
| Holdings | 30 | 25 |
| Beta | 1.35 | 1.38 |
| Dividend Yield | 0.60% | 0.50% |
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Holdings Overlap Analysis
67%
Holdings Overlap
SOXX and SMH share 67% of their top holdings. There is moderate overlap, so owning both provides some additional diversification but with diminishing returns.
SOXX and SMH share 67% of their top holdings (moderate overlap). SOXX has 30 total holdings and SMH has 25. Common holdings include NVDA, AVGO, AMD.
View data table
| Metric | SOXX | SMH |
|---|---|---|
| Overlap | 67% | 67% |
| Unique Holdings | 33% | 33% |
| Total Holdings | 30 | 25 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
SOXX
Fee cost: $2,930
SMH
Fee cost: $2,930
Over 20 years, the fee difference amounts to $0 on a $10,000 investment. The cost difference is negligible — choose based on other factors.
On a $10,000 investment over 20 years at 8% return, SOXX (0.35% fee) grows to $43,680 while SMH (0.35% fee) grows to $43,680. The fee difference costs $0.
View data table
| Year | SOXX Value | SMH Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,457 | $14,457 |
| 10 | $20,900 | $20,900 |
| 15 | $30,214 | $30,214 |
| 20 | $43,680 | $43,680 |
Which One Should a Beginner Choose?
Choose SOXX if: You want investors who want targeted exposure to the semiconductor industry driving ai and tech innovation, growth-oriented traders comfortable with high volatility in exchange for higher return potential, those building a thematic portfolio around the long-term growth of chip demand. It's managed by BlackRock with an expense ratio of 0.35%.
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%.
Can You Own Both SOXX and SMH?
With 67% holdings overlap, owning both means you're essentially doubling down on the same stocks. For beginners, we recommend picking one to keep things simple. If you want more diversification, consider pairing your choice with an international ETF like VXUS or a bond ETF like BND instead.
Frequently Asked Questions
Should I buy SOXX or SMH?▾
Both ETFs score equally well for beginners (7/10). Your choice depends on your specific investment goals. However, both are solid options. SOXX is best for investors who want investors who want targeted exposure to the semiconductor industry driving ai and tech innovation, while SMH is better suited for investors who want maximum exposure to the biggest winners in the semiconductor space.
What is the difference between SOXX and SMH?▾
SOXX (iShares Semiconductor ETF) tracks semiconductors investments with 30 holdings and a 0.35% expense ratio. SMH (VanEck Semiconductor ETF) focuses on semiconductors with 25 holdings at 0.35%. Their top holdings overlap by 67%.
Can I own both SOXX and SMH?▾
Since SOXX and SMH have 67% holdings overlap, owning both means significant duplication. Most beginners are better off choosing one.