SMH vs XLK
SMH vs XLK
VanEck Semiconductor ETF vs State Street Technology Select Sector SPDR ETF
Quick Verdict
XLK has a lower expense ratio. SMH delivered stronger 1-year returns. XLK offers more diversification with 75 holdings.
Side-by-Side Comparison
| Metric | SMH | XLK | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.08% | |
| AUM | $67.5B | $114.1B | |
| Dividend Yield | 0.17% | 0.42% | |
| Holdings | 27 | 76 | |
| YTD Return | +53.09% | +28.75% | |
| 1Y Return | +100.01% | +41.65% | |
| 3Y Return (annualized) | +54.93% | +30.14% | |
| 5Y Return (annualized) | +34.41% | +19.97% | |
| Volatility (annualized) | 31.4% | 23.2% | |
| Max Drawdown | -85.5% | -82.0% | |
| Fund Family | VanEck | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Dec 20, 2011 | Dec 16, 1998 |
SMH vs XLK Performance
VanEck Semiconductor ETF (SMH) is a ETF from VanEck and State Street Technology Select Sector SPDR ETF (XLK) is a ETF from SPDR State Street Global Advisors. Over the past year SMH returned +100.01% while XLK returned +41.65%. Year to date, SMH is up 53.09% versus a gain of 28.75% for XLK.
Over three years, SMH compounded at +54.93% per year against +30.14% for XLK; over five years the annualized figures are +34.41% and +19.97% respectively. Across the full 26-year window we track, SMH has the edge at +11.32% annualized vs +9.43%. 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 23.2% for XLK. 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 -82.0% for XLK. 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SMH charges 0.35% per year while XLK charges 0.08%. On a $10,000 position that is $35 vs $8 annually, a gap of $27 per year that compounds over a long holding period. On income, SMH currently yields 0.17% against 0.42% for XLK.
Holdings Overlap
SMH and XLK share 19 holdings out of 81 unique holdings combined, representing a 42.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SMH | Weight in XLK | Difference |
|---|---|---|---|
| NVDA | 20.70% | 12.84% | 7.86% |
| AVGO | 6.20% | 4.80% | 1.40% |
| MU | 5.51% | 4.14% | 1.37% |
| AMAT | Pro | Pro | Pro |
| INTC | Pro | Pro | Pro |
| LRCX | 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 XLK 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 XLK?
SMH has an expense ratio of 0.35% while XLK charges 0.08%. XLK is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, SMH or XLK?
Over the past year SMH returned +100.01% vs +41.65% for XLK, so SMH leads on 1-year performance. Over the longest common window we track (26 years), SMH annualized +11.32% vs +9.43% for XLK. Past performance does not guarantee future results.
Which is riskier, SMH or XLK?
SMH has been the more volatile fund at 31.4% annualized versus 23.2% for XLK. Worst drawdown: SMH -85.5% vs XLK -82.0%.
Should I hold both SMH and XLK?
SMH and XLK have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SMH and XLK?
SMH and XLK share 19 common holdings with a 42.6% weight overlap. Combined, they hold 81 unique securities.
Which pays a higher dividend, SMH or XLK?
SMH yields 0.17% while XLK yields 0.42%, so XLK currently pays the higher dividend yield.
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