SMH vs VOO
SMH vs VOO
VanEck Semiconductor ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. SMH delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SMH | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.03% | |
| AUM | $67.5B | $979.0B | |
| Dividend Yield | 0.17% | 1.09% | |
| Holdings | 27 | 509 | |
| YTD Return | +56.09% | +13.80% | |
| 1Y Return | +100.78% | +23.71% | |
| 3Y Return (annualized) | +56.80% | +21.50% | |
| 5Y Return (annualized) | +35.06% | +13.44% | |
| Volatility (annualized) | 31.4% | 14.1% | |
| Max Drawdown | -85.5% | -34.3% | |
| Fund Family | VanEck | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 20, 2011 | Sep 7, 2010 |
SMH vs VOO Performance
VanEck Semiconductor ETF (SMH) is a ETF from VanEck and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year SMH returned +100.78% while VOO returned +23.71%. Year to date, SMH is up 56.09% versus a gain of 13.80% for VOO.
Over three years, SMH compounded at +56.80% per year against +21.50% for VOO; over five years the annualized figures are +35.06% and +13.44% respectively. Across the full 16-year window we track, VOO has the edge at +13.58% annualized vs +11.40%. 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 14.1% for VOO. 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 -34.3% for VOO. 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SMH charges 0.35% per year while VOO charges 0.03%. On a $10,000 position that is $35 vs $3 annually, a gap of $32 per year that compounds over a long holding period. On income, SMH currently yields 0.17% against 1.09% for VOO.
Holdings Overlap
SMH and VOO share 19 holdings out of 511 unique holdings combined, representing a 17.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SMH | Weight in VOO | Difference |
|---|---|---|---|
| NVDA | 20.70% | 7.51% | 13.19% |
| AVGO | 6.20% | 2.77% | 3.43% |
| MU | 5.51% | 2.02% | 3.49% |
| 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 VOO 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 VOO?
SMH has an expense ratio of 0.35% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, SMH or VOO?
Over the past year SMH returned +100.78% vs +23.71% for VOO, so SMH leads on 1-year performance. Over the longest common window we track (16 years), SMH annualized +11.40% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, SMH or VOO?
SMH has been the more volatile fund at 31.4% annualized versus 14.1% for VOO. Worst drawdown: SMH -85.5% vs VOO -34.3%.
Should I hold both SMH and VOO?
SMH and VOO have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SMH and VOO?
SMH and VOO share 19 common holdings with a 17.9% weight overlap. Combined, they hold 511 unique securities.
Which pays a higher dividend, SMH or VOO?
SMH yields 0.17% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.
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