ETF Versus

SMH vs XLK

VanEck Semiconductor ETF vs State Street Technology Select Sector SPDR ETF

Last updated: 2026-04-10

SMH VanEck

VanEck Semiconductor ETF (SMH) is an exchange-traded fund issued by VanEck that provides exposure to thematic - semiconductors securities. It charges an above-average expense ratio of 0.35%. The fund offers a modest dividend yield of 0.25%. Launched in 2011, the fund has a 15-year track record.

AUM: $46.4B ER: 0.35% Yield: 0.25% Since: Dec 20, 2011
XLK SPDR

State Street Technology Select Sector SPDR ETF (XLK) is an exchange-traded fund issued by SPDR that provides exposure to us sector - technology securities. It charges a low expense ratio of 0.08%. The fund offers a modest dividend yield of 0.54%. Launched in 1998, the fund has a 28-year track record.

AUM: $90.3B ER: 0.08% Yield: 0.54% Since: Dec 16, 1998

Quick Verdict

XLK is significantly cheaper at 0.08% vs 0.35% expense ratio, saving you approximately $530 per $10,000 invested over 10 years. Over the past year, SMH has significantly outperformed with a 123.2% return vs 46.8%.

Key Metrics

Metric SMH XLK
Expense Ratio 0.35% 0.08%
Dividend Yield 0.3% 0.5%
Fund Family VanEck SPDR
Category Thematic - Semiconductors US Sector - Technology

Performance Chart

Indexed to 100 at start (5-year comparison)

70 126 182 238 294 350 2021-04 2022-07 2023-10 2025-01 2026-04
SMH +246.1%
XLK +102.2%

Performance Comparison

Period SMH XLK Difference
1 Month +9.22% +1.60% +7.62%
3 Months +12.12% -2.80% +14.92%
6 Months +28.92% +0.06% +28.86%
YTD +17.33% -1.13% +18.46%
1 Year +123.23% +46.81% +76.42%
3 Years +243.72% +93.34% +150.38%
5 Years +246.09% +102.25% +143.84%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period SMH Fees XLK Fees You Save
$10,000 10 years $690 $159 $530
$10,000 20 years $2,930 $686 $2,244
$10,000 30 years $9,337 $2,212 $7,125
$50,000 10 years $3,448 $797 $2,651
$50,000 30 years $46,685 $11,061 $35,624
$100,000 30 years $93,370 $22,123 $71,247

Risk Metrics

Based on 5 years of daily returns

Metric SMH XLK
Annualized Volatility 34.8% 24.7%
Max Drawdown -45.3% -34.0%
Sharpe Ratio 0.76 0.51

Dividend Comparison

Metric SMH XLK
Annual Dividend (per share) $1.11 $0.77
Dividend Yield 0.25% 0.54%
Distribution Frequency Semi-Annual or Annual Quarterly

Top Holdings

5 of top 10 holdings overlap (50% overlap in top holdings)

SMH Top Holdings

NameWeight
NVIDIA CorporationNVDA19.37%
Taiwan Semiconductor Manufacturing Company LimitedTSM11.59%
Broadcom Inc.AVGO7.67%
Advanced Micro Devices, Inc.AMD4.91%
Intel CorporationINTC4.83%
KLA CorporationKLAC4.80%
ASML Holding N.V.ASML4.77%
Analog Devices, Inc.ADI4.68%
Lam Research CorporationLRCX4.60%
Applied Materials, Inc.AMAT4.58%

XLK Top Holdings

NameWeight
NVIDIA CorporationNVDA15.30%
Apple Inc.AAPL13.10%
Microsoft CorporationMSFT9.49%
Broadcom Inc.AVGO5.76%
Micron Technology, Inc.MU3.96%
Advanced Micro Devices, Inc.AMD3.22%
Cisco Systems, Inc.CSCO2.74%
Lam Research CorporationLRCX2.69%
Applied Materials, Inc.AMAT2.63%
Palantir Technologies Inc.PLTR2.49%

Which One Should You Choose?

Choose XLK if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose SMH if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

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