SMH vs SPY
SMH vs SPY
VanEck Semiconductor ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SMH delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SMH | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.09% | |
| AUM | $67.5B | $789.1B | |
| Dividend Yield | 0.17% | 1.01% | |
| Holdings | 27 | 505 | |
| YTD Return | +56.09% | +13.79% | |
| 1Y Return | +100.78% | +23.66% | |
| 3Y Return (annualized) | +56.80% | +21.40% | |
| 5Y Return (annualized) | +35.06% | +13.37% | |
| Volatility (annualized) | 31.4% | 15.3% | |
| Max Drawdown | -85.5% | -56.5% | |
| Fund Family | VanEck | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Dec 20, 2011 | Jan 22, 1993 |
SMH vs SPY Performance
VanEck Semiconductor ETF (SMH) is a ETF from VanEck and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SMH returned +100.78% while SPY returned +23.66%. Year to date, SMH is up 56.09% versus a gain of 13.79% for SPY.
Over three years, SMH compounded at +56.80% per year against +21.40% for SPY; over five years the annualized figures are +35.06% and +13.37% respectively. Across the full 26-year window we track, SMH has the edge at +11.40% annualized vs +8.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMH has been the more volatile fund, with annualized monthly volatility of 31.4% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -85.5% for SMH and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SMH charges 0.35% per year while SPY charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, SMH currently yields 0.17% against 1.01% for SPY.
Holdings Overlap
SMH and SPY share 19 holdings out of 509 unique holdings combined, representing a 16.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SMH | Weight in SPY | Difference |
|---|---|---|---|
| NVDA | 20.70% | 7.31% | 13.39% |
| AVGO | 6.20% | 2.73% | 3.47% |
| MU | 5.51% | 1.71% | 3.80% |
| AMAT | Pro | Pro | Pro |
| LRCX | Pro | Pro | Pro |
| INTC | Pro | Pro | Pro |
| KLAC | Pro | Pro | Pro |
| TXN | Pro | Pro | Pro |
| ADI | Pro | Pro | Pro |
| QCOM | Pro | Pro | Pro |
See all 10 holdings SMH shares with SPY Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, SMH or SPY?
SMH has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, SMH or SPY?
Over the past year SMH returned +100.78% vs +23.66% for SPY, so SMH leads on 1-year performance. Over the longest common window we track (26 years), SMH annualized +11.40% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, SMH or SPY?
SMH has been the more volatile fund at 31.4% annualized versus 15.3% for SPY. Worst drawdown: SMH -85.5% vs SPY -56.5%.
Should I hold both SMH and SPY?
SMH and SPY have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SMH and SPY?
SMH and SPY share 19 common holdings with a 16.6% weight overlap. Combined, they hold 509 unique securities.
Which pays a higher dividend, SMH or SPY?
SMH yields 0.17% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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