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SMH vs. SOXX: Which Semiconductor ETF Is Better?
https://www.fool.com/feeds/index.aspx · 2026-06-08 18:45
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AI assessment
The AI build-out has made semiconductors a hot sector, with two major ETFs (SMH and SOXX) both experiencing significant growth over the past year. Despite their similar portfolio overlap of 71%, investors should consider other factors such as expense ratios, management quality, and specific holdings when deciding which ETF to invest in.
Why HOLD: The AI build-out has made semiconductors a hot sector with the two major ETFs experiencing significant growth. However, investors should consider other factors before making a decision on whether to buy or sell these ETFs.
Model: qwen2.5:3b · 2026-06-08 20:21
Article (stored locally)
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.Image source: Getty Images.Continue reading