Prediction: SOXX Is About to Outperform SMH. Here's Why.
Two seemingly similar semiconductor ETFs aren't as similar as they seem. One small detail gives SOXX the advantage for the rest of 2026.
Overview
The two largest semiconductor exchange-traded funds (ETFs) are the iShares Semiconductor ETF (NASDAQ: SOXX) and the VanEck Semiconductor ETF (NASDAQ: SMH). Combined, they have more than $115 billion in assets under management and are the two most popular ways to play the current chip rally.
At a high level, the two are pretty similar. Both have portfolios of around 25 to 30 names. They have nearly the same expense ratio. You might think the two are interchangeable.
They're not. In fact, some very simple differences in their construction strategies produce two very different portfolios. One factor in particular makes me think that the iShares Semiconductor ETF is the better choice moving forward.
Details
Source
Originally published at www.fool.com.
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