# SMH vs SOXX: fees, holdings and returns compared

> SMH vs SOXX: what each ETF holds, what it costs, and how both did over the same dates, with yearly returns and worst drops.

SMH holds about 25 of the largest chip companies, including some based outside the US that trade on US exchanges. SOXX holds about 30 chip companies. Both are small groups in one industry, so both swing a lot. Over the same dates since July 2001, SMH returned about 14.1% a year and SOXX returned about 13.6% a year.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 17, 2026. Prices through October 20, 2026.

## Key points

- SOXX costs less: 0.33% a year against 0.35%.
- SMH started trading in December 2011. SOXX started in July 2001.
- Worst drops since 2001: SMH −71.1%, SOXX −70.2%.
- Daily correlation: 0.97 (1 means they always move together).

## What is the difference between SMH and SOXX?

The two indexes pick and weigh chip companies differently. SMH's index lets the largest companies take a big share and includes foreign chip makers listed in the US. SOXX's index holds a few more companies and limits how much the biggest ones can weigh. In years when one or two giants move a lot, those limits make the funds pull apart.

| Fact | SMH | SOXX |
| --- | --- | --- |
| Full name | VanEck Semiconductor ETF | iShares Semiconductor ETF |
| Issuer | VanEck | iShares (BlackRock) |
| Expense ratio | 0.35% a year | 0.33% a year |
| Started trading | December 20, 2011 | July 10, 2001 |
| Tracks | MVIS US Listed Semiconductor 25 Index | NYSE Semiconductor Index |
| Holdings | 26 holdings as of September 30, 2026 | 30 holdings as of October 15, 2026 |
| Type | US stocks, ETF | US stocks, ETF |

Fund facts checked on the [VanEck SMH page](https://www.vaneck.com/us/en/investments/semiconductor-etf-smh/overview/) and the [iShares (BlackRock) SOXX page](https://www.ishares.com/us/products/239705/ishares-semiconductor-etf).

## Is SMH or SOXX cheaper?

SOXX costs less: 0.33% a year against 0.35%. On $10,000, that is about $35 a year for SMH and $33 for SOXX. The fund takes its fee out of its own value a little each day, so you never get a bill.

## SMH vs SOXX performance over the same dates

Both funds are measured from July 2001 to October 2026, the dates both traded. SMH returned about 14.1% a year and SOXX returned about 13.6% a year. SMH came out ahead over this period, which does not mean it will again.

| Measure | SMH | SOXX |
| --- | --- | --- |
| $10,000 grew to | $281,887 | $251,614 |
| Total return | 2,719% | 2,416% |
| Return per year (CAGR) | 14.1% | 13.6% |
| Worst drop from a high | −71.1% | −70.2% |
| Volatility (how much it swings) | 32.7% | 33.6% |
| Last 12 months | 57.8% | 71.2% |
| Last 3 years, per year | 57.4% | 49.4% |
| Last 5 years, per year | 33.4% | 27.5% |
| Last 10 years, per year | 33.3% | 31.0% |

Prices through October 20, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

## SMH and SOXX returns by year

| Year | SMH | SOXX |
| --- | --- | --- |
| 2026 (part of the year) | 51.7% | 66.3% |
| 2025 | 49.2% | 40.7% |
| 2024 | 39.1% | 12.9% |
| 2023 | 73.4% | 67.1% |
| 2022 | −33.5% | −35.1% |
| 2021 | 42.1% | 44.1% |
| 2020 | 55.5% | 52.7% |
| 2019 | 64.5% | 62.4% |
| 2018 | −9.0% | −6.5% |
| 2017 | 38.5% | 39.8% |
| 2016 | 35.5% | 38.3% |
| 2015 | −0.3% | −2.0% |
| 2014 | 30.2% | 29.8% |
| 2013 | 33.3% | 41.6% |
| 2012 | 8.6% | 6.6% |
| 2011 | −6.5% | −10.6% |
| 2010 | 16.5% | 13.7% |
| 2009 | 58.6% | 74.9% |
| 2008 | −45.8% | −51.7% |
| 2007 | −3.5% | −2.1% |
| 2006 | −8.2% | 0.2% |
| 2005 | 9.8% | 13.4% |
| 2004 | −19.6% | −14.3% |
| 2003 | 87.3% | 81.0% |
| 2002 | −47.1% | −47.9% |
| 2001 (part of the year) | −8.3% | −8.5% |

## Which fell further in bad times?

A drawdown is how far a fund falls from its last high point. SMH's worst fall was −71.1%, from August 2, 2001 to November 20, 2008. It got back to that high on June 16, 2014.

SOXX's worst fall was −70.2%, from August 2, 2001 to November 20, 2008. It got back to that high on February 12, 2014.

Their daily moves had a correlation of 0.97. A correlation of 1 means two funds always move up and down together. Near 0 means they move on their own. So holding both adds little variety.

## Why people choose SMH or SOXX

**SMH.** People who want the largest chip makers worldwide, weighted heavily toward the leaders, tend to pick SMH.

**SOXX.** People who want a somewhat more even spread across chip companies tend to pick SOXX.

## Strategies that hold SMH or SOXX

No classic strategy holds SMH or SOXX yet.

## Other funds like SMH and SOXX

Each fund has more funds that hold the same kind of investments, ranked by how closely they move with it: [SMH alternatives](https://tactfolio.com/alternatives/SMH.md) and [SOXX alternatives](https://tactfolio.com/alternatives/SOXX.md).

## Test a mix of SMH and SOXX

Open the [builder](https://tactfolio.com/builder), add SMH and SOXX, and give each a weight, such as 50% and 50%. The backtest shows how the mix would have done, with its worst drop, on daily prices. You can also add a rule, for example to switch between them, and compare. Read the full pages for [SMH](https://tactfolio.com/etf/SMH.md) and [SOXX](https://tactfolio.com/etf/SOXX.md), or see [more ETF comparisons](https://tactfolio.com/etf-comparisons.md).

## The details

Both funds use Tactfolio's stored daily prices, adjusted for splits, with dividends reinvested. They are compared only on days both traded, starting the later fund's first day, so neither gets a head start. Correlation uses daily returns over the same days. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [Sector rotation](https://tactfolio.com/learn/sector-rotation): Sector rotation explained: the 11 GICS sectors and their ETFs, business-cycle vs momentum rotation, and a classic rule with dated backtest figures.
- [S&P 500 index](https://tactfolio.com/learn/sp500-index): The S&P 500 tracks about 500 large US companies. Learn how stocks get in, how the index is weighted, how to invest in it, and how far it has fallen before.
- [What is an ETF](https://tactfolio.com/learn/what-is-an-etf): An ETF is a fund that trades like a stock. Learn how ETFs work, what they cost, the main types, and the risks, with SEC sources.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.

## Common questions

### Do SMH and SOXX hold the same stocks?

Many of the same. Their largest holdings overlap, but the weights differ and SMH can hold foreign chip makers listed in the US.

### Why do semiconductor funds swing so much?

They hold a few companies in one industry whose sales rise and fall with demand for chips, so the whole fund tends to move together, sharply.

### Which is cheaper, SMH or SOXX?

SOXX costs less: 0.33% a year against 0.35%. Fees come from each issuer and were checked on October 17, 2026.

### Which did better, SMH or SOXX?

From July 2001 to October 2026, SMH returned about 14.1% a year and SOXX returned about 13.6% a year, with dividends reinvested. Their worst drops were −71.1% and −70.2%. Past returns do not tell you what comes next.

## Sources

- [VanEck: VanEck Semiconductor ETF fund page](https://www.vaneck.com/us/en/investments/semiconductor-etf-smh/overview/)
- [iShares (BlackRock): iShares Semiconductor ETF fund page](https://www.ishares.com/us/products/239705/ishares-semiconductor-etf)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.