What do the expense ratios for SMH and SOXX indicate about the costs of investing in these ETFs?

SMH has an expense ratio of 0.35%, while SOXX charges 0.33%. This means SOXX costs 0.02 percentage points less annually. While small, such fees compound over time, reducing net returns. Investors in both funds benefit from relatively low cost access to the semiconductor sector, but the slight fee difference could impact long-term outcomes. It is vital to compare these recurring costs when evaluating ETFs for cost-efficiency.

How do the net assets of SMH and SOXX relate to fund liquidity?

SMH holds $74.1 billion in net assets, compared to SOXX's $45.4 billion. Larger asset bases often indicate higher liquidity and more active trading, reducing bid-ask spreads for investors. SMH's bigger size may appeal to those prioritising ease of transaction. While SOXX's lower asset level might reflect less trading volume, both funds remain substantial. Understanding asset size helps assess potential market accessibility and liquidity dynamics within the semiconductor ETF sector.

What are the primary differences in top holdings between SMH and SOXX?

SMH concentrates significantly in Nvidia (NVDA) at 22.52%, whereas SOXX's largest position is Intel (INTC) at 9.23%. SMH's portfolio leans heavily into the leading AI-chip producer, offering targeted high-growth exposure. In contrast, SOXX distributes its investments more evenly across top firms like AMD (9.05%) and Micron (8.06%), providing balanced semiconductor coverage. While eight top-10 stocks overlap, the weighting strategies create distinct risk-return profiles. This highlights how single-stock concentration can drive divergent fund performance within the same sector.

Which fund typically offers stronger growth potential and which better suits income-focused goals?

SMH, with its 22.52% weighting in Nvidia, is often associated with higher growth potential in the AI and high-performance computing segments, though this brings concentration risk. SOXX, having more diversified holdings with no single stock exceeding 9.23%, generally provides more balanced exposure to the broader semiconductor industry. For income, their dividend yields are similar and modest (SMH 0.18%, SOXX 0.22%), so neither is primarily suited for high-income strategies. Investors typically select SMH for targeted growth and SOXX for diversified sector exposure.

How do dividend yields differ between SMH and SOXX?

SMH offers a dividend yield of 0.18%, while SOXX provides 0.22%. Both yields are modest, reflecting that semiconductor companies typically reinvest earnings for growth rather than prioritising distributions. The difference is slight and should not heavily influence decisions for growth-oriented investors. However, yield can matter for those valuing regular cash flow, however small. Distributions may vary with company policies and market conditions, so neither fund is designed primarily for significant income generation within the technology sector.

Do SMH and SOXX track identical indices?

The index tracked is not available for either SMH or SOXX based on the provided data. However, fund prospectuses typically indicate that SMH tracks the MVIS US Listed Semiconductor 25 Index, while SOXX follows the ICE Semiconductor Index. These underlying benchmarks may differ in methodology, constituent selection, and weighting, explaining variations in performance and holdings. Investors should review official fund documents to confirm exact index details and understand how tracking differences impact exposure to the semiconductor sector.

Why is the difference in index methodology important for understanding these ETFs?

Different index methodologies lead to varying holdings and performance, even for funds targeting the same sector. If SMH tracks an index with a larger weighting to market-cap leaders like Nvidia, while SOXX's index emphasises broader semiconductor representation, their exposures will diverge. This affects sector sub-industry focus, such as memory, equipment, or design firms. Without knowing the specific index, understanding methodology highlights why identical sector labels may yield distinct investment characteristics and risks for comparative analysis.

How does fund inception date impact historical performance data?

SMH began on 20 December 2011, while SOXX launched on 10 July 2001. The 10-year difference means SOXX has a substantially longer track record. When evaluating historical returns, SMH's performance may cover recent AI-driven growth, while SOXX's includes earlier semiconductor cycles, including 2001's dot-com aftermath. This can make direct comparison challenging. Investors should analyse overlapping periods for consistent views and recognise that longer history may include different market dynamics and regulatory environments.

What does 'not available' mean for index tracking data?

When index tracking is listed as 'not available', it signifies the specific benchmark index name or details are not provided in this comparison context. However, ETFs always track an underlying index. Investors should obtain this information from fund prospectuses or issuer websites. Knowing the index clarifies the fund's strategy, constituent selection criteria, and rebalancing methods, which influence holdings and risk. Without it, one can only infer differences from holdings data, but cannot fully assess tracking accuracy or methodological nuances.

Which ETF has the higher expense ratio?

SMH has the higher expense ratio at 0.35%, compared to SOXX's 0.33%. The difference of 0.02 percentage points is minimal but consistent with SMH's potentially larger assets under management. Investors should factor in these recurring costs, as they directly reduce compounded net returns over long holding periods. Despite the margin, both ratios are competitive for sector ETFs, offering low-cost exposure to the semiconductor industry. Fee comparison is a key step in evaluating similar funds.

What is the sector classification for both funds?

Both SMH and SOXX are classified under the Technology category, specifically focusing on the semiconductor sub-industry. This means they hold companies involved in chip design, manufacturing, and equipment, such as Nvidia, AMD, Intel, and ASML. The sector classification signals a targeted exposure within the broader technology market, characterised by high growth potential, cyclical demand patterns, and significant innovation. Understanding this helps investors recognise that both funds are specialised sector ETFs rather than diversified technology funds.

What disclaimer applies to this ETF comparison?

This comparison is for educational purposes only and does not constitute financial advice. The information provided uses figures from Yahoo Finance fetched on 22 September 2026, and should be verified with official fund documents. Past performance of SMH or SOXX does not guarantee future results. Investors should assess their own financial situation, risk tolerance, and goals before making any investment decisions. Always conduct independent research or consult a qualified professional before purchasing ETFs or other securities.

SMH vs SOXX

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

Compare VanEck Semiconductor ETF (SMH) and iShares Semiconductor ETF (SOXX). Review expense ratios, net assets, dividend yields, top holdings and index focus to understand how each fund tracks its market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SMH

Metric

SOXX

0.35%

Expense Ratio

0.33%

0.18%

Dividend Yield

0.22%

$74.06B

Net Assets

$45.37B

Holdings

Dec 20, 2011

Inception Date

Jul 10, 2001

–

Index Tracked

–

Technology

Fund Category

Technology

SOXX costs about $2.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	SMH	SOXX
NVDANVIDIA Corporation	22.52%	7.66%
AMDAdvanced Micro Devices, Inc.	6.20%	9.05%
AVGOBroadcom Inc.	5.68%	7.35%
MUMicron Technology, Inc.	5.64%	8.06%
INTCIntel Corporation	4.71%	9.23%
QCOMQUALCOMM Incorporated	4.48%	3.97%
MRVLMarvell Technology, Inc.	4.41%	4.39%
ADIAnalog Devices, Inc.	4.28%	3.95%

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Investment Analysis

SMH

Pros

SMH offers investors substantial fund liquidity with $74.1 billion in net assets.
SMH provides concentrated exposure to Nvidia, reflecting the company's $22.52% portfolio weight.
SMH maintains a $0.35 expense ratio, delivering cost-effective semiconductor sector access.

Considerations

SMH's dividend yield is low at $0.18%, minimising cash distribution value.
SMH's top ten holdings display significant concentration risk due to dominant positions.
SMH's index tracking methodology is unavailable, reducing transparency for investors.

SOXX

Pros

SOXX charges a slightly lower $0.33 expense ratio than comparable semiconductor funds.
SOXX provides balanced diversification with no single holding exceeding $9.23% in weight.
SOXX's $0.22 dividend yield offers marginally enhanced income potential for holders.

Considerations

SOXX's $45.4 billion net assets provide lower liquidity than larger peers.
SOXX lacks published index tracking methodology details, limiting investor transparency.
SOXX's portfolio is highly weighted to Intel and AMD, increasing company-specific risk.

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About SMH and SOXX

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.

SOXX (SOXX)

iShares Semiconductor ETF (SOXX) offers investors targeted exposure to companies engaged in the semiconductor industry — including chip designers, manufacturers and equipment suppliers. The ETF aims to track the performance of a semiconductor-focused index, delivering a single, tradable instrument that reflects broad industry trends rather than the fortunes of any one company. SOXX typically holds a concentrated set of large and mid-cap names, so its performance is closely linked to cyclical demand for chips across computing, mobile, automotive and industrial markets. Investors should note that ETFs carry market risk, sector concentration risk and potential tracking error versus their benchmark. Metrics such as assets under management and average daily volume are often more relevant than a single-company market capitalisation. Fees, liquidity and the fund’s holdings can affect outcomes. This is general educational information only and not personal advice; values can fall as well as rise and past performance is not a reliable guide to the future.

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SMH vs SOXX

Fund Snapshot