SMH vs SOXX: Which ETF Is Better in 2026?

The label is the same; the portfolio is not. Their top holdings overlap about 53% by weight (8 shared names: NVDA, AVGO, AMD, QCOM, TXN, AMAT). That is real overlap, but each still tilts differently, so the two are genuinely different bets under one label.

Overlap reflects top holdings by weight (an approximation of full-fund overlap), as of early 2026. Verify full holdings with each issuer.

SMH tracks MVIS US Listed Semiconductor 25, and SOXX tracks ICE Semiconductor. Because they follow different benchmarks, the two funds screen and weight their holdings differently, and that is what produces any gap in exposure, concentration, and return between them.

On construction, SMH is market-cap-weighted and SOXX is market-cap-weighted. They share a weighting approach, so any difference comes from the underlying index rather than the method.

So the funds cover similar ground under different rules. Read the holdings overlap above alongside the methodology here to see how much of the difference is real exposure versus labeling.

The fees match exactly at 0.35%, so cost is not the deciding factor here; the difference, if any, comes from exposure and structure.

On scale, SMH holds about ~$28 billion and SOXX about ~$14 billion. Larger funds generally trade at tighter bid-ask spreads and carry deeper options markets, which matters if you trade actively or in size; for buy-and-hold investors it rarely changes the outcome. SOXX currently pays the higher dividend yield (~0.6% versus ~0.4%), which shifts more of its return into cash today.

SMH concentrates more weight in its largest holdings (top three about 39%), so it suits an investor who wants the theme expressed through its biggest winners and can tolerate more single-name risk. SOXX spreads weight more evenly (top three about 26%), which suits an investor who wants the same theme with less dependence on any one company. Match the fund to how much concentration you actually want.

These are descriptive profiles, not recommendations. What fits you depends on your goals, horizon, and what you already own. Walnut is not an investment adviser.

The overlap that decides most ETF purchases is not between SMH and SOXX, it is with what you already hold. ETF redundancy is invisible without looking through to the underlying holdings: you can already own most of SMH inside a broad fund like an S&P 500 or total-market ETF and not realize it.

This is the part a generic comparison cannot answer, because it depends on your account. Connect your brokerage and Walnut looks through your funds to show your real, combined exposure, flags how much of SMH or SOXX you already own elsewhere, and tells you whether adding either just buys the same companies twice, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Tracks the MVIS US Listed Semiconductor 25 Index, with much higher concentration in the top names than the broader SOXX. NVIDIA and TSMC alone routinely account for 25-30% of the fund. Aggressive AI-infrastructure exposure for investors comfortable with concentration.

Full SMH guide

Tracks the ICE Semiconductor Index, which caps individual weights more aggressively than the MVIS index SMH tracks. Less top-heavy than SMH; better diversified across the semiconductor stack at the cost of slightly lower exposure to the very largest names.

Full SOXX guide

This is a choice of which bet you are making. If you want the theme concentrated in its biggest winners, the more top-heavy fund suits you; if you want the theme spread more evenly so no single name dominates, the more diversified one fits. Match the construction to your conviction, then check overlap with what you already own.

For the full detail, see the SMH and SOXX guides.

Approximate as of early 2026; verify with each issuer.

VanEck specializes in thematic and sector funds. iShares (BlackRock) is the largest ETF issuer, with deep liquidity across its range.

SMH and SOXX share a theme but are built differently (about 53% overlap by weight), so pick the construction that matches your conviction. Either way, the decisive check is overlap with your real portfolio. Walnut can show that before you buy. It is not an investment adviser.

Both funds lean on NVDA, so understanding that one company explains a lot of what drives either ETF.