ETF Versus

SMH vs VGT

VanEck Semiconductor ETF vs Vanguard Information Technology Index Fund ETF Shares

Last updated: 2026-04-10

SMH

VanEck Semiconductor ETF (SMH) is an exchange-traded fund that provides exposure to thematic - semiconductors securities. It charges an above-average expense ratio of 0.35%. The fund offers a modest dividend yield of 0.26%. Launched in 2011, the fund has a 15-year track record.

AUM: $46.4B ER: 0.35% Yield: 0.26% Since: Dec 20, 2011
VGT

Vanguard Information Technology Index Fund ETF Shares (VGT) is an exchange-traded fund that provides exposure to us sector - technology securities. It charges a low expense ratio of 0.09%. The fund offers a modest dividend yield of 0.41%. Launched in 2004, the fund has a 22-year track record.

AUM: $111.1B ER: 0.09% Yield: 0.41% Since: Jan 26, 2004

Quick Verdict

VGT is significantly cheaper at 0.09% vs 0.35% expense ratio, saving you approximately $510 per $10,000 invested over 10 years. Over the past year, SMH has significantly outperformed with a 119.3% return vs 45.2%.

Key Metrics

Metric SMH VGT
Expense Ratio 0.35% 0.09%
Dividend Yield 0.3% 0.4%
Fund Family N/A N/A
Category Thematic - Semiconductors US Sector - Technology

Performance Chart

Indexed to 100 at start (5-year comparison)

70 125 180 235 290 345 2021-04 2022-07 2023-10 2024-12 2026-04
SMH +240.0%
VGT +94.4%

Performance Comparison

Period SMH VGT Difference
1 Month +7.30% +0.70% +6.60%
3 Months +10.15% -3.31% +13.46%
6 Months +26.65% -2.03% +28.68%
YTD +15.27% -2.09% +17.36%
1 Year +119.31% +45.19% +74.12%
3 Years +237.68% +96.41% +141.27%
5 Years +240.02% +94.42% +145.60%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period SMH Fees VGT Fees You Save
$10,000 10 years $690 $179 $510
$10,000 20 years $2,930 $771 $2,159
$10,000 30 years $9,337 $2,486 $6,852
$50,000 10 years $3,448 $896 $2,551
$50,000 30 years $46,685 $12,428 $34,258
$100,000 30 years $93,370 $24,855 $68,515

Risk Metrics

Based on 5 years of daily returns

Metric SMH VGT
Annualized Volatility 34.8% 25.1%
Max Drawdown -45.3% -35.5%
Sharpe Ratio 0.75 0.48

Dividend Comparison

Metric SMH VGT
Annual Dividend (per share) $1.11 $3.06
Dividend Yield 0.26% 0.41%
Distribution Frequency Semi-Annual or Annual Quarterly

Top Holdings

5 of top 10 holdings overlap (50% overlap in top holdings)

SMH Top Holdings

NameWeight
NVIDIA CorporationNVDA19.37%
Taiwan Semiconductor Manufacturing Company LimitedTSM11.59%
Broadcom Inc.AVGO7.67%
Advanced Micro Devices, Inc.AMD4.91%
Intel CorporationINTC4.83%
KLA CorporationKLAC4.80%
ASML Holding N.V.ASML4.77%
Analog Devices, Inc.ADI4.68%
Lam Research CorporationLRCX4.60%
Applied Materials, Inc.AMAT4.58%

VGT Top Holdings

NameWeight
NVIDIA CorporationNVDA18.07%
Apple Inc.AAPL15.84%
Microsoft CorporationMSFT10.39%
Broadcom Inc.AVGO4.34%
Micron Technology, Inc.MU2.37%
Advanced Micro Devices, Inc.AMD1.65%
Cisco Systems, Inc.CSCO1.63%
Palantir Technologies Inc.PLTR1.57%
Applied Materials, Inc.AMAT1.54%
Lam Research CorporationLRCX1.53%

Which One Should You Choose?

Choose VGT if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose SMH if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

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