What is the primary difference in the expense ratios of CHPS and SMH?

CHPS charges a low expense ratio of 0.15%, whereas SMH has a higher expense ratio of 0.35%. This 0.20% annual fee difference means CHPS theoretically retains more of the fund's gross returns for investors. Lower fees are generally considered advantageous over long periods, as they reduce the drag on total return. However, investors should weigh this cost advantage against other structural factors such as the fund's liquidity, the size of its asset base, and its historical performance. While fees are important, they should not be the sole determinant of a fund's suitability, as the total cost of ownership and investment objective alignment are equally critical considerations.

How do net asset sizes influence ETF liquidity?

Net assets serve as a key indicator of an ETF's liquidity and market establishment. SMH has substantial net assets of $74.1 billion, indicating high liquidity and a very large, well-established asset base that typically narrows the bid-ask spread. CHPS has significantly smaller net assets of $118 million, suggesting it is less established and may have lower liquidity. While size does not guarantee performance, a larger asset base often provides stability. Investors evaluating an ETF should consider if the trading volume and assets are sufficient for their needs, but must remain mindful that educational content is not financial advice.

What does the difference in fund inception dates tell investors?

The inception date reveals how long an ETF has been tracking its benchmark. SMH launched in December 2011, providing a long track record through various market cycles and economic conditions. CHPS was launched in July 2023, meaning it is newer and its track record is limited compared to older, longer-established semiconductor funds. A longer history allows investors to evaluate past performance, but newer funds may offer improved structures or lower costs. Investors should understand that past performance does not guarantee future results, and a newer fund requires assessing the issuer's reputation and strategy rather than relying solely on historical data.

What sectors do these ETFs invest in, and how do they differ?

Both CHPS and SMH fall under the Technology category, with a primary focus on the semiconductor industry. While both track semiconductor markets, their approaches differ. CHPS has a more evenly distributed portfolio across the semiconductor industry, with its largest holding accounting for 5.46% of assets. In contrast, SMH is characterised by a high concentration, with its single largest holding accounting for 22.52% of total assets. Investors should understand this difference in concentration: CHPS provides broader exposure within the sector, while SMH is more heavily weighted toward specific large players.

Which ETF has a higher dividend yield?

CHPS provides a dividend yield of 0.34%, which is higher than the comparable fund, offering a slightly larger income stream to investors. SMH has a dividend yield of 0.18%, which is relatively low and offers less regular income compared to the alternative fund. Investors should note that semiconductor sector ETFs typically prioritise capital growth over income generation. While CHPS's yield is higher, the absolute value of the distribution may still be modest compared to dedicated income funds. Understanding these yields helps set realistic expectations about the income potential from a sector-specific technology investment.

How does the portfolio concentration compare between the funds?

The two funds exhibit distinct levels of portfolio concentration. CHPS maintains a balanced approach, ensuring a more evenly distributed portfolio across the semiconductor industry, with its largest holding, AMD, representing 5.46% of assets. SMH, however, is highly concentrated, with its single largest holding, NVDA, accounting for 22.52% of total assets. This difference suggests that SMH's performance is more sensitive to the fluctuations of a few individual companies. Investors comparing these funds should consider their personal risk tolerance for concentration risk versus a broader diversification within the sector.

Do these funds have any top holdings in common?

Yes, the funds share seven of their top ten holdings. The common companies include AMD, NVDA, INTC, MU, AVGO, MRVL and QCOM. While these overlap significantly, the weighting differs considerably. SMH holds NVDA at 22.52% and AMD at 6.20%, whereas CHPS holds AMD at 5.46% and NVDA at 5.10%. CHPS also includes INTC at 5.06%, MU at 5.05% and AVGO at 4.28%, demonstrating a more diversified weight distribution. Investors seeking semiconductor exposure will find similar companies but with fundamentally different portfolio structures regarding individual stock risk.

Which fund offers more global exposure?

SMH's top holdings include major international companies like TSM and ASML, providing broader global exposure across the semiconductor supply chain. TSM is the second-largest holding at 9.82%, and ASML accounts for 4.83%. CHPS's top ten list, in contrast, is composed primarily of US-listed companies, with no international firms appearing in its top holdings. While both funds track the sector, SMH captures more of the global manufacturing ecosystem. Investors considering these options should think about their preference for global reach, although it is crucial to consult a financial professional before investing.

What unique companies are among the top holdings?

CHPS holds unique companies like KLAC at 3.81%, LRCX at 4.16%, TXN at 4.12% and ADI at 4.28%. These firms are not found in SMH's top ten holdings, which instead include global leaders such as TSM and ASML. This distinction shows that while both funds are semiconductor ETFs, they do not hold the exact same portfolio. CHPS offers exposure to US-based manufacturing, design and testing equipment providers not listed in the top ten of its competitor, giving investors a unique mix of holdings despite the significant overlap in major names.

What should beginners know about ETF distributions?

For beginners, it is important to understand that ETF distributions, such as those from CHPS and SMH, are typically declared quarterly or annually and may change. The yields mentioned are 0.34% for CHPS and 0.18% for SMH. Since these funds focus on a high-growth sector, the dividend yield is generally lower than income-oriented ETFs. Beginners should not rely on ETF distributions for steady income but view them as a supplementary benefit. Investors can usually choose to receive the cash or have it automatically reinvested into buying more shares, which can help compound growth over time without active intervention.

Why are sector weights not fully available in this comparison?

A notable limitation in this comparison is that the sector weights for both CHPS and SMH are currently not available. The provided data explicitly states that top sector weight information is missing, which means investors cannot confirm how much exposure comes from Technology versus other minor sectors like Industrials or Consumer Discretionary. This lack of transparency reduces the clarity of the funds' overall industry composition compared to other metrics. It is a reminder that data is always evolving, and investors should verify these details directly with fund providers when making future investment decisions.

How should an investor compare these ETFs for their portfolio?

When deciding between CHPS and SMH, investors should compare fees, holdings and dividends against their personal objectives. CHPS offers a cheaper fee at 0.15% and a more diversified portfolio, while SMH provides a long track record since 2011 and global exposure through TSM and ASML, though at a higher cost and concentration. Beginners should consult financial documents to understand risks like the limited history of CHPS or the heavy weighting of NVDA in SMH. This information is for educational purposes only, not financial advice. Investment involves risk, and past performance does not guarantee future results.

CHPS vs SMH

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare Xtrackers Semiconductor Select Equity ETF (CHPS) and VanEck Semiconductor ETF (SMH) by fees, holdings and dividends. CHPS charges 0.15% with $118 million in net assets; SMH costs 0.35% with $74.1 billion. Both track semiconductor markets. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

CHPS

Metric

SMH

0.15%

Expense Ratio

0.35%

0.34%

Dividend Yield

0.18%

$118.07M

Net Assets

$74.06B

Holdings

Jul 13, 2023

Inception Date

Dec 20, 2011

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Index Tracked

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Technology

Fund Category

Technology

CHPS costs about $20.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	CHPS	SMH
AMDAdvanced Micro Devices, Inc.	5.46%	6.20%
NVDANVIDIA Corporation	5.10%	22.52%
INTCIntel Corporation	5.06%	4.71%
MUMicron Technology, Inc.	5.05%	5.64%
AVGOBroadcom Inc.	4.28%	5.68%
MRVLMarvell Technology, Inc.	4.25%	4.41%
QCOMQUALCOMM Incorporated	3.85%	4.48%

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Compare FTXL and SMH ETFs on expense ratios, holdings, dividends, and index focus. Review data on semiconductor exposure to inform your further research.

Investment Analysis

CHPS

Pros

This ETF has a low expense ratio of 0.15%, which helps investors retain more of their returns over time.
The fund's dividend yield of 0.34% is higher than the comparable fund, offering a slightly larger income stream to investors.
Its largest holding accounts for 5.46% of assets, ensuring a more evenly distributed portfolio across the semiconductor industry.

Considerations

The fund holds $118 million in net assets, meaning it is significantly smaller and less established than the larger competitor.
It was launched on July 13, 2023, meaning its track record is limited compared to older, longer-established semiconductor funds.
The fund's top sector weight information is not available, which reduces transparency regarding its overall industry composition.

SMH

Pros

The fund has $74.1 billion in net assets, indicating high liquidity and a very large, well-established asset base.
It was launched on December 20, 2011, giving it a substantial history and a long track record in the semiconductor sector.
Its top holdings include major international companies like TSM, which provides broader global exposure across the semiconductor supply chain.

Considerations

The fund has a higher expense ratio of 0.35%, which creates more drag on total returns compared to the cheaper competitor.
Its dividend yield of 0.18% is relatively low, meaning it offers less regular income to investors than the alternative fund.
The single largest holding accounts for 22.52% of total assets, resulting in a much higher concentration in individual stocks.

About CHPS and SMH

CHPS (CHPS)

The Xtrackers Semiconductor Select Equity ETF (CHPS) is a technology-focused fund designed to provide investors with exposure to the semiconductor sector. Launched in July 2023, this fund holds 61 distinct securities, allowing for a concentrated yet diversified approach to companies involved in chip design, manufacturing, and related infrastructure. With a competitive expense ratio of 0.15%, it aims to capture growth opportunities within the global semiconductor industry, which is critical for advancements in computing, telecommunications, and electronics. While net assets stand at approximately USD 118 million, the fund does not focus primarily on income, offering a modest dividend yield of 0.34%. Investors should note that while the semiconductor sector has shown significant innovation and potential for growth, it is also subject to cyclical market conditions and regulatory changes. Values can rise and fall, and returns are not guaranteed.

SMH (SMH)

The VanEck Semiconductor ETF (SMH) offers investors a way to access the technology sector, specifically focusing on semiconductor companies. Launched in December 2011, this fund has grown significantly, managing over USD 74 billion in net assets as of its most recent report. It holds a concentrated portfolio of 26 companies, providing targeted exposure to key players in the chip manufacturing industry. With an expense ratio of 0.35%, it is positioned as a cost-effective option for those seeking sector-specific diversification. While the dividend yield is modest at 0.18%, the primary appeal of SMH lies in its potential to capitalise on technological advancements and digital demand. However, it is essential for investors to recognise that technology sector performance can fluctuate, and values may rise and fall. This ETF serves as an educational tool for understanding semiconductor market dynamics rather than a guaranteed return vehicle.

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CHPS vs SMH

Fund Snapshot

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Investment Analysis

CHPS

Pros

Considerations

SMH

Pros

Considerations

About CHPS and SMH

Buy CHPS or SMH in Nemo

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Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What is the primary difference in the expense ratios of CHPS and SMH?

How do net asset sizes influence ETF liquidity?

What does the difference in fund inception dates tell investors?

What sectors do these ETFs invest in, and how do they differ?

Which ETF has a higher dividend yield?

How does the portfolio concentration compare between the funds?

Do these funds have any top holdings in common?

Which fund offers more global exposure?

What unique companies are among the top holdings?

What should beginners know about ETF distributions?

Why are sector weights not fully available in this comparison?

How should an investor compare these ETFs for their portfolio?

Fund Snapshot

About CHPS and SMH

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FTXL vs SMH