What do expense ratios of 0.35% and 0.19% mean when comparing SMH and SOXQ?

Expense ratios reflect the annual cost of owning each fund. SMH's 0.35% is higher than SOXQ's 0.19%, meaning SOXQ deducts fewer fees over time. For example, on a 100,000 investment, SMH would deduct 350 per year, while SOXQ would deduct 190. This 0.16-percentage-point difference may reduce SOXQ's return over extended holding periods, though performance remains influenced by other factors.

How do dividend yields of 0.18% and 0.29% affect earnings for ETF holders?

SMH offers a 0.18% dividend yield, while SOXQ provides a 0.29% yield. Both are low compared to income-focused investments, but SOXQ generates slightly more cash for its holders. The income is modest and should be viewed alongside the funds' expense ratios and share prices. These yields are based on historical payments, which can fluctuate.

What is the significance of the shared holdings between SMH and SOXQ?

Both funds hold major semiconductor companies like NVDA, AMD, and TSM among their top 10 positions. These shared holdings mean SMH and SOXQ share similar market exposure. This overlap may cause their performance to move in tandem, making the differences in their expense ratios and concentration more significant in evaluating the funds.

Why is SMH's inception date in December 2011 relevant for investors?

SMH's inception date of December 2011 means it has a longer track record than SOXQ, which launched on 11 June 2021. A longer history allows investors to observe how SMH performs across different market cycles, particularly during major semiconductor industry changes. This extended data can be helpful when evaluating the fund's responsiveness to various economic conditions.

How do the concentration levels of NVDA in SMH and SOXQ differ, and what does that mean for risk?

SMH's top holding, NVDA, accounts for 22.52% of its portfolio, while in SOXQ, NVDA represents 13.92%. The higher concentration in SMH can amplify returns during favorable market cycles, but it also heightens the fund's vulnerability to any negative movements in NVDA's stock price. This single-stock concentration increases the potential for volatility, as the fund is more exposed to the performance of a single company.

What does SOXQ's top holding concentration mean for diversification within the fund?

SOXQ's portfolio is more diversified than SMH's, with no single holding exceeding 14%. Its largest position, NVDA, represents just 13.92%, compared to SMH's 22.52%. This reduced concentration lowers the fund's exposure to any one company's performance, which may be appealing to investors seeking a more balanced allocation within the semiconductor sector.

What factors should be considered when comparing SMH and SOXQ based on fund size and liquidity?

SMH has net assets of 74.1 billion, far surpassing SOXQ's 3.1 billion. This larger fund size often results in better liquidity, allowing for easier trading with smaller spreads. While SOXQ's smaller size might reduce liquidity, its lower expense ratio may compensate for investors focused on minimizing cost. Assessing fund size alongside the trading volume helps in gauging liquidity.

How do the index tracking approaches of SMH and SOXQ differ, and what does that mean for investors?

The index tracked is not available for either SMH or SOXQ. Both funds are semiconductor ETFs, and while SOXQ may have lower transparency in its methodology, investors can still assess the funds' holdings to understand their exposure. Without clear index information, it is essential to review the composition of holdings and historical performance.

What role does the dividend yield play when comparing SMH and SOXQ?

SOXQ offers a dividend yield of 0.29%, slightly higher than SMH's 0.18%. While the difference is minor, SOXQ provides a slightly better income stream for investors seeking regular distributions. However, in the context of semiconductor growth stocks, dividends are usually a small component of total return compared to capital appreciation.

How can investors evaluate whether SMH's higher expense ratio is worth it?

While SMH charges an expense ratio of 0.35%, which is higher than SOXQ's 0.19%, its superior liquidity and longer track record since its inception in December 2011 might justify the cost for some investors. Liquidity is crucial for active traders, and SMH's larger size can lead to easier execution and potentially tighter bid-ask spreads.

What are the key differences in top holdings that affect the performance of SMH and SOXQ?

SMH heavily weights NVDA at 22.52%, followed by TSM and AMD. SOXQ has a more diversified portfolio with NVDA at 13.92%, MU at 8.99%, and AVGO at 8.68%. The differences in top holdings, particularly the NVDA concentration, will likely impact their respective performance, as SMH is more susceptible to NVDA's price fluctuations.

SMH vs SOXQ

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

Compare VanEck Semiconductor ETF (SMH) and Invesco Semiconductor ETF (SOXQ). Review expense ratios, top holdings, dividend yields and how each fund tracks semiconductor markets. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SMH

Metric

SOXQ

0.35%

Expense Ratio

0.19%

0.18%

Dividend Yield

0.29%

$74.06B

Net Assets

$3.07B

Holdings

Dec 20, 2011

Inception Date

Jun 11, 2021

–

Index Tracked

–

Technology

Fund Category

Technology

SOXQ costs about $16.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	SMH	SOXQ
NVDANVIDIA Corporation	22.52%	13.92%
TSMTaiwan Semiconductor Manufacturing Company Limited	9.82%	4.59%
AMDAdvanced Micro Devices, Inc.	6.20%	4.72%
AVGOBroadcom Inc.	5.68%	8.68%
MUMicron Technology, Inc.	5.64%	8.99%
ASMLASML Holding N.V.	4.83%	4.51%
INTCIntel Corporation	4.71%	4.24%
MRVLMarvell Technology, Inc.	4.41%	5.25%

Discover More Comparisons

SMH vs XSD

Compare SMH and XSD semiconductor ETFs. Review fees, holdings, and dividends. Understand how each fund tracks the market. Neutral and educational analysis.

SMH vs SOXX

Compare SMH and SOXX on fees, holdings, dividends and index tracking to understand semiconductor ETF differences. Educational information only.

SMH vs SMHX

Compare SMH and SMHX. Both share a 0.35% expense ratio but differ in assets, yields, and holdings. SMH offers a long track record, while SMHX is newer.

Investment Analysis

SMH

Pros

SMH offers vast liquidity with net assets of $74.1 billion.
It is a mature fund with an inception date of 20 December 2011.
Concentration in NVDA at 22.52% amplifies performance in bullish semiconductor cycles.

Considerations

The expense ratio of 0.35% is higher than newer competitors.
A dividend yield of 0.18% provides minimal income generation.
High weighting in NVDA creates significant single-stock concentration risk.

SOXQ

Pros

The expense ratio of 0.19% is lower than SMH’s 0.35%.
A dividend yield of 0.29% is slightly higher than SMH’s 0.18%.
Top holdings are more diversified with NVDA at 13.92% rather than 22.52%.

Considerations

Net assets of $3.1 billion indicate lower liquidity than SMH.
Inception date of 11 June 2021 means a shorter track record.
The index tracked is not available, limiting transparency on methodology.

About SMH and SOXQ

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.

SOXQ (SOXQ)

The Invesco Semiconductor ETF aims to provide investors with broad exposure to companies involved in the semiconductor industry. As an exchange-traded fund, it allows investors to track the performance of this vital sector without needing to select individual stocks. With net assets of approximately USD 3.07 billion and 33 holdings, the fund offers a concentrated yet diversified view of the semiconductor landscape. Launched in June 2021, it operates with an expense ratio of 0.19%, which is competitive for its category. The fund currently yields a small dividend of 0.29%, making it more suitable for growth-oriented investors rather than those seeking high income. The semiconductor sector is closely tied to technology advancements and global demand for electronics, meaning returns can fluctuate significantly based on economic cycles and industry trends.

Buy SMH or SOXQ in Nemo

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

SMH vs SOXQ

Fund Snapshot