SMH vs. SOXX: Which Semiconductor ETF Is Better?
Semiconductors have been one of the market's hottest sectors. But one of these major ETFs is better positioned for the remainder of 2026.
SMH vs. SOXX: Which Semiconductor ETF Is Better?
Overview
The artificial intelligence (AI) build-out has made semiconductors one of the market's hottest sectors. The two biggest ETFs in this category -- the VanEck Semiconductor ETF (NASDAQ: SMH) and the iShares Semiconductor ETF (NASDAQ: SOXX) -- are both up more than 100% over the past year and have 10-year average annual returns of well over 30%.
While there is a 71% overlap across the funds' portfolios, there is a difference in construction. The VanEck ETF selects companies based on market capitalization, revenue, and trading volume. It limits the portfolio to 25 stocks. The iShares ETF holds stocks classified as belonging in the semiconductor industry and holds around 30 names.
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Originally published at www.fool.com.
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