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ETF Comparison

LUMA vs SMH: Which Is the Better Pick in 2026?

A head-to-head comparison of KraneShares Photonic and Optical ETF and VanEck Semiconductor ETF covering yield, cost, risk, and income potential.

Data updated September 18, 2026

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings.

LUMA has outpaced SMH over the shared window since Jul 2026, posting a 4.26% total return against -3.01%. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolSince Jul 2026
LUMA4.26%
SMH-3.01%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 18, 2026. YTD and 1Y are cumulative; windows of one year or longer are annualized. “Since Jul 2026” measures every fund from July 15, 2026 — the start of shared available history — so all funds share one comparison window.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricLUMASMH
Full nameKraneShares Photonic and Optical ETFVanEck Semiconductor ETF
IssuerKraneSharesVanEck
Last Close$25.19 as of September 18, 2026$573.00 as of September 18, 2026
Distribution rate—0.19%
Distribution Safety Score™ —93
Safety-Adjusted Yield —0.18%
Expense ratio1.00%0.35%
AUM$9.71M$66.8B
Distribution frequencyAnnualAnnual
Underlying index—MVIS US Listed Semiconductor 25 Index
ObjectiveSeeks capital appreciation by investing in public and private companies worldwide that build photonic and optical hardware — optical interconnects, transceivers, fiber-optic cables, lasers, and other light-based infrastructure moving data for AI and the modern digital economy.Track the MVIS US Listed Semiconductor 25 Index.
Asset classEquityEquity
Inception date07/14/202612/20/2011
Beta—2.06
Last dividend—$1.105
Ex-dividend date—12/22/2025

— Distribution rate, Safety-Adjusted Yield, last dividend, and ex-dividend date are not yet available because LUMA launched July 2026; these fields will populate after the first distribution.

Bottom lineWe won't call this one: LUMA launched July 2026, so there is not yet a track record to compare. Compare the strategy, cost and holdings in the sections above and treat any performance figures for the newer ETF as provisional. What is already clear from the numbers above: the two do not cost the same — SMH charges 0.35% against 1.00% for LUMA, and on funds tracking the same thing that gap compounds every year you hold.

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

KraneShares
ETFs36
Total AUM$8.68B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

KraneShares is known for pioneering thematic and alternative ETF strategies that capture emerging trends and specialized market segments. The issuer's fund lineup spans income-focused strategies, including covered call and high-yield approaches, alongside thematic funds targeting areas like artificial intelligence, cryptocurrency, cannabis, and other innovative sectors. KraneShares distinguishes itself through a diversified portfolio of specialized ETFs designed for investors seeking exposure beyond traditional asset classes, with a particular emphasis on capturing opportunities in evolving industries and alternative income generation strategies.

See our curated list of related YouTube videos on LUMA.

See all KraneShares ETFs
VanEck
ETFs85
Total AUM$163B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

VanEck is known for offering specialized and thematic ETFs across diverse asset classes, including commodities, digital assets, and sector-specific investments. The firm's 22-fund lineup spans income-generating options, covered call strategies, and growth-focused equity funds, with popular tickers including GDX (gold miners), SMH (semiconductors), MOAT (competitive advantage stocks), and HODL (bitcoin). VanEck distinguishes itself through niche exposure areas such as digital assets, commodities, and thematic investing strategies, complemented by traditional bond and municipal bond offerings.

See our curated list of related YouTube videos on SMH.

See all VanEck ETFs

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Quick verdict

LUMA (KraneShares Photonic and Optical ETF) and SMH (VanEck Semiconductor ETF) are both annual-pay ETFs, but they take different approaches.

SMH currently shows a 0.19% distribution yield. LUMA has not yet established a full distribution history, so a comparable yield figure is not available.

SMH is cheaper with an expense ratio of 0.35% compared to 1.00%.

SMH has $66.8B in assets vs $9.71M for LUMA, but LUMA only launched July 2026 — AUM comparisons will become more meaningful as it builds a track record.

Deep dive

Yield & income

On a $10,000 investment, LUMA has no reported distribution yield yet, so a monthly income estimate is not available, while SMH would produce $1.58/month, at current distribution rates. Both pay annual distributions.

LUMA yield—
SMH yield0.19%

Cost & efficiency

Over 10 years on $10,000, LUMA would cost approximately $1,000 in fees vs $350 for SMH (simplified, not compounded). The $650.00 difference may be offset by yield or performance.

LUMA ER1.00%
SMH ER0.35%

Strategy & risk

LUMA is an ETF built around technology exposure, while SMH tracks MVIS US Listed Semiconductor 25 Index with a technology approach.

LUMA beta—
SMH beta2.06

Fund details

LUMA is managed by KraneShares (launched 07/14/2026) with $9.71M in assets. SMH is managed by VanEck (launched 12/20/2011) with $66.8B in assets.

LUMA AUM$9.71M
SMH AUM$66.8B
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Frequently asked questions

Which of LUMA or SMH pays more dividend income?

SMH currently reports a distribution yield, while LUMA has not yet established a full distribution history. A direct income comparison is not yet meaningful — check back once both funds have published several consecutive distributions.

What is the difference between LUMA and SMH?

LUMA (KraneShares Photonic and Optical ETF) is an ETF built around technology exposure, while SMH (VanEck Semiconductor ETF) tracks MVIS US Listed Semiconductor 25 Index with a technology approach. They are issued by KraneShares and VanEck respectively.

Can I hold both LUMA and SMH?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Which has lower fees, LUMA or SMH?

LUMA has an expense ratio of 1.00% while SMH charges 0.35%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in LUMA vs SMH generate?

At current rates, LUMA has not established a distribution history yet, so a monthly income estimate is not available. The same in SMH would produce about $1.58 per month ($19.00 annually).

Which has performed better historically, LUMA or SMH?

LUMA has outpaced SMH over the shared window since Jul 2026, posting a 4.26% total return against -3.01%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

LUMA vs SMH — at a glance

Generated September 19, 2026.

Overview

LUMA and SMH are both technology-focused ETFs, but they track different layers of the semiconductor and data-infrastructure supply chain. LUMA invests in photonic and optical hardware companies—the infrastructure that transmits data using light—while SMH tracks a diversified index of 25 US-listed semiconductor makers. LUMA is thematic and nascent; SMH is broad-based and established.

How they differ

The biggest difference is scope: SMH holds a diversified basket of semiconductor designers and manufacturers (memory, logic, foundries), while LUMA focuses narrowly on the optical and photonic supply chain that carries data between chips and data centers. LUMA, by contrast, is newly launched (07/14/2026), has just $9.71M in assets, and charges 1.00%—reflecting its emerging-strategy status and illiquidity premium.

Who each is best for

  • LUMA: Investors with a high conviction that AI and data-center expansion will create sustained demand for photonic interconnects, who can tolerate narrow thematic exposure and early-fund risk. Fits allocations seeking concentrated growth rather than broad semiconductor exposure.
  • SMH: Investors seeking diversified semiconductor sector exposure through a large, liquid ETF with low costs and a longer track record. Fits as a core technology allocation or hedge against commodity-hardware cycles.
  • Photonics market demand cyclicality: LUMA's thesis depends on sustained capex spending by hyperscalers in data-center buildout. A slowdown in AI investment or saturation in optical interconnect adoption could compress valuations and demand for its underlying companies.
  • SMH's sector cyclicality and cyclicality: Semiconductors are economically sensitive. SMH's 2.06 beta amplifies both upside and downside swings in the sector; periods of chip oversupply or weakening demand for consumer electronics can pressure returns significantly.
  • Overlap and substitution risk: Both funds expose investors to the semiconductor supply chain, but LUMA's upstream optical focus and SMH's broader chip portfolio may overlap in companies serving data centers, creating correlated risk if that end market contracts.

Bottom line

If you want exposure to the semiconductor sector with a established, liquid, diversified vehicle, SMH delivers on scale and cost. If you believe photonic infrastructure is a discrete, high-growth theme worth concentrated exposure and can accept illiquidity and early-stage fund risk, LUMA targets that opportunity. Past performance is no guarantee of future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

Dividend growth vs. high yield Yield on cost, explained How expense ratios eat returns

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