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ETF Comparison

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

A head-to-head comparison of Schwab U.S. Large-Cap Growth ETF and VanEck Semiconductor ETF covering yield, cost, risk, and income potential.

Data updated August 13, 2026

Best for

  • SCHGInvestors who want a growth tilt and can accept bigger swings for higher upside.
  • SMHInvestors who want broad equity exposure.

Jump to the side-by-side numbers

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricSCHGSMH
Full nameSchwab U.S. Large-Cap Growth ETFVanEck Semiconductor ETF
IssuerSchwabVanEck
Last Close$35.61 as of August 13, 2026$584.83 as of August 13, 2026
Distribution yield0.38%0.19%
Distribution Safety Score™ 10093
Expense ratio0.04%0.35%
AUM$62.4B$71.5B
Distribution frequencyQuarterlyAnnual
Underlying indexDow Jones U.S. Large-Cap Growth Total Stock Market IndexMVIS US Listed Semiconductor 25 Index
ObjectiveSeeks to track the Dow Jones U.S. Large-Cap Growth Total Stock Market Index, holding the components ranked 1-750 by full market capitalization that are classified as growth.Track the MVIS US Listed Semiconductor 25 Index.
Asset classEquityEquity
Inception date12/11/200912/20/2011
Beta1.212.05
Last dividend$0.0340$1.1050
Ex-dividend date06/24/202612/22/2025

Bottom lineChoose SCHG if you want a growth tilt and can accept bigger swings for higher upside. Choose SMH if you want broad equity exposure.

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Schwab
ETFs34
Total AUM$605B

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

Schwab is a major provider of low-cost, broad-based ETFs known for making investing accessible to individual investors through its discount brokerage platform. The issuer's fund lineup spans multiple categories including core index funds, dividend and income-focused strategies, factor-based approaches, international exposure, fixed income, and digital assets, with popular core holdings like SCHB (U.S. broad market) and SCHD (dividend appreciation) alongside more specialized thematic offerings. Schwab's ETF suite is characterized by its breadth across asset classes and investment styles, competitive expense ratios, and integration with its retail brokerage ecosystem.

See our curated list of related YouTube videos on SCHG.

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VanEck
ETFs84
Total AUM$161B

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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Visual comparison

Key metrics

Projected income on $10K

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

Total returns

SCHG has lagged SMH over the trailing twelve months, posting a 17.90% total return against 99.95%. The lead holds up over 10 years too: SMH has compounded at 34.87% a year, against 18.54% for SCHG. SCHG has been the steadier holding, though — annualized volatility of 19.5% against 36.8% for SMH. 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.
SymbolYTD1Y3Y5Y10YSince Dec 2009Volatility Sharpe Sortino Max drawdown
SCHG9.82%17.90%24.29%14.06%18.54%16.62%19.5%0.891.27-23.4%
SMH56.66%99.95%57.99%35.51%34.87%28.39%36.8%1.131.61-35.7%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 12, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Dec 2009” measures every fund from December 11, 2009 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

SCHG (Schwab U.S. Large-Cap Growth ETF) and SMH (VanEck Semiconductor ETF) are both dividend ETFs, but they take different approaches.

SCHG offers the higher yield at 0.38% vs 0.19% for SMH. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

SCHG is cheaper with an expense ratio of 0.04% compared to 0.35%.

They track different benchmarks: SCHG is linked to Dow Jones U.S. Large-Cap Growth Total Stock Market Index while SMH tracks MVIS US Listed Semiconductor 25 Index, which means their performance drivers differ.

SMH is the larger fund by assets ($71.5B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, SCHG would generate roughly $3.17/month, while SMH would produce $1.58/month, at current distribution rates.

SCHG yield0.38%
SMH yield0.19%
Monthly diff on $10K$1.58

Cost & efficiency

Over 10 years on $10,000, SCHG would cost approximately $40 in fees vs $350 for SMH (simplified, not compounded). The $310.00 difference may be offset by yield or performance.

SCHG ER0.04%
SMH ER0.35%

Strategy & risk

SCHG tracks Dow Jones U.S. Large-Cap Growth Total Stock Market Index, while SMH tracks MVIS US Listed Semiconductor 25 Index with a technology approach. Beta is 1.21 for SCHG and 2.05 for SMH, indicating SCHG is less volatile relative to the market.

SCHG beta1.21
SMH beta2.05

Fund details

SCHG is managed by Schwab (launched 12/11/2009) with $62.4B in assets. SMH is managed by VanEck (launched 12/20/2011) with $71.5B in assets.

SCHG AUM$62.4B
SMH AUM$71.5B
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Frequently asked questions

What is the current distribution yield for SCHG and SMH?

SCHG currently distributes 0.38% and SMH 0.19%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is SCHG or SMH better for dividend income?

It depends on your goals. SCHG currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between SCHG and SMH?

SCHG (Schwab U.S. Large-Cap Growth ETF) tracks Dow Jones U.S. Large-Cap Growth Total Stock Market Index, while SMH (VanEck Semiconductor ETF) tracks MVIS US Listed Semiconductor 25 Index with a technology approach. They are issued by Schwab and VanEck respectively.

Can I hold both SCHG 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.

Is SCHG or SMH safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — SCHG scores 100, SMH scores 93, so SCHG's payout currently looks the more resilient of the two. SCHG has also shown lower price volatility (beta 1.21 vs 2.05 for SMH). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, SCHG or SMH?

SCHG has an expense ratio of 0.04% 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 SCHG vs SMH generate?

At current rates, $10,000 in SCHG would generate roughly $3.17 per month ($38.00 annually). The same in SMH would produce about $1.58 per month ($19.00 annually).

Which has performed better historically, SCHG or SMH?

SCHG has lagged SMH over the trailing twelve months, posting a 17.90% total return against 99.95%. The lead holds up over 10 years too: SMH has compounded at 34.87% a year, against 18.54% for SCHG. SCHG has been the steadier holding, though — annualized volatility of 19.5% against 36.8% for SMH. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

SCHG vs SMH — at a glance

Generated August 8, 2026.

Overview

SCHG is a broad large-cap growth ETF tracking the 750 largest U.S. growth stocks by market capitalization; SMH is a concentrated sector ETF holding just 25 semiconductor companies. The core difference is scope: SCHG captures diversified growth across all sectors, while SMH provides laser-focused exposure to chip design, manufacturing, and equipment companies. SCHG costs nearly nine times less to own, but SMH offers concentrated upside (and downside) in a single high-demand industry.

How they differ

The biggest distinction is portfolio construction. SCHG holds 750 names and broadly represents the growth half of the large-cap market; SMH holds only 25 semiconductor stocks, making it a sector bet, not a market-cap bet. Second, SCHG's distribution yield is 0.38% versus SMH's 0.19%, but SCHG also trades with a beta of 1.21 while SMH's beta is 1.98—meaning SMH amplifies market moves by roughly 64% more. Third, SCHG's expense ratio is 0.04% compared to SMH's 0.35%, a meaningful gap for passive vehicles; SCHG's $62.4B in assets also dwarfs SMH's $71.5B relative to their different mandates.

Who each is best for

SCHG: Fits investors seeking broad large-cap growth exposure with minimal costs and natural diversification across sectors, industries, and company sizes. Works for those who view growth as a style, not a single industry play.

SMH: Fits investors comfortable with sector concentration and higher volatility, who believe semiconductor demand will outpace broader market growth and are willing to accept a narrower, more cyclical holding to pursue that thesis.

Key risks to know

  • Sector concentration (SMH): A 25-stock portfolio is highly vulnerable to cyclical downturns in chip demand, supply-chain disruptions, or regulatory shifts affecting semiconductor trade. A broad market pullback paired with tech weakness can compress SMH much faster than SCHG.
  • Amplified volatility (SMH): Beta of 1.98 means SMH swings nearly twice as hard as the overall market. A 20% market correction could translate to a 40% drawdown for SMH, a material consideration for risk-averse investors.
  • Earnings and capital-allocation dependence (SMH): Semiconductor companies are capital-intensive, with profitability heavily cyclical and tied to utilization rates and pricing power. Rising interest rates or a prolonged downturn can quickly erode valuations when investors reprice growth.
  • Index-tracking drift (SCHG): Large-cap growth as a category can underperform value or small-cap during certain market regimes; holding 750 names reduces idiosyncratic stock risk but doesn't protect against style rotation.

Bottom line

If you want diversified, low-cost growth exposure and can tolerate style risk, SCHG's massive AUM, rock-bottom fees, and 750-name breadth stand out. If you're convinced semiconductors will outperform and accept the tradeoff of 1.98 beta and sector concentration, SMH's focused thesis may fit—but verify you're comfortable with its 40%+ move potential in sharper downturns. Past performance does not predict 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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