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ETF Comparison

SMH vs SOXL: The Industry, or 3x Daily Chips?

A head-to-head of VanEck's Semiconductor ETF and Direxion Daily Semiconductor Bull 3X covering daily reset, cost, and why they differ.

Data updated September 4, 2026

Best for

  • SMHInvestors who want broad equity exposure.
  • SOXLInvestors who want broad equity exposure.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

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

Total returns

SMH has lagged SOXL over the trailing twelve months, posting a 98.57% total return against 370.95%. The lead holds up over 10 years too: SOXL has compounded at 46.16% a year, against 34.01% for SMH. SMH has been the steadier holding, though — annualized volatility of 36.9% against 117.3% for SOXL. 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 Mar 2010Volatility Sharpe Sortino Max drawdown
SMH51.89%98.57%54.30%33.71%34.01%28.33%36.9%1.061.50-35.7%
SOXL148.26%370.95%70.77%20.66%46.16%37.70%117.3%0.420.56-87.9%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 4, 2026. YTD and 1Y are cumulative; windows of one year or longer are annualized. “Since Mar 2010” measures every fund from March 11, 2010 — 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.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricSMHSOXL
Full nameVanEck Semiconductor ETFDirexion Daily Semiconductor Bull 3X Shares
IssuerVanEckDirexion
Underlying indexMVIS US Listed Semiconductor 25 IndexICE Semiconductor
Last Close$567.01 as of September 4, 2026$117.28 as of September 4, 2026
Distribution rate0.19%0.01%
Distribution Safety Score™ 9346
Safety-Adjusted Yield 0.18%0.00%
Expense ratio0.35%0.75%
AUM$66.4B$18.1B
Distribution frequencyAnnualQuarterly
ObjectiveTrack the MVIS US Listed Semiconductor 25 Index.Seeks daily investment results of 300% of the performance of the ICE Semiconductor Index.
Asset classEquityEquity
Inception date12/20/201103/11/2010
Beta2.057.8
Last dividend$1.105$0.01
Ex-dividend date12/22/202509/23/2025

Bottom lineSMH and SOXL are both for investors who want broad equity exposure — so strategy isn't the deciding factor here. Cost is: SMH charges 0.35% against 0.75% for SOXL, and between two funds this similar that gap comes straight out of your return every year you hold.

SMH vs SOXL: the industry or 3x daily chips?

SMH is listed semiconductors. SOXL seeks three times the daily move and resets. It is a trading vehicle, not a substitute.

SMHSOXL
What you ownMVIS US Listed Semiconductor 25 Index3x daily semiconductors
Expense ratio0.35%0.75%
Daily resetNoYes

How the risk works

Read this before the income numbers below: the strategy mechanics on this page shape what those payouts can cost you.

  • Daily leverage reset. SOXL targets a multiple of the index's DAILY move, resetting every session. Over weeks and months the compounding of daily resets (volatility decay) can drag returns far below the stated multiple, especially in choppy markets — and losses are magnified the same way gains are.

Income calculator

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

ETFs85
Total AUM$165B

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.

ETFs134
Total AUM$62.9B

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

Direxion is known for offering leveraged and inverse ETFs that enable investors to amplify or hedge market exposure across various asset classes and market segments. The firm's fund lineup focuses primarily on income-generating strategies and leveraged products, featuring both daily leveraged long positions and inverse (bearish) funds designed for tactical trading and hedging purposes. The issuer maintains a broad range of tickers covering sectors, commodities, cryptocurrencies, and equity indices, appealing to active traders and investors seeking non-traditional exposure management tools.

See our curated list of related YouTube videos on SOXL.

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Quick verdict

SMH (VanEck Semiconductor ETF) and SOXL (Direxion Daily Semiconductor Bull 3X Shares) are both dividend ETFs, but they take different approaches.

SMH offers the higher yield at 0.19% vs 0.01% for SOXL. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

SMH is cheaper with an expense ratio of 0.35% compared to 0.75%.

They have different reference exposures: SMH is linked to MVIS US Listed Semiconductor 25 Index while SOXL is linked to ICE Semiconductor, which means their performance drivers differ.

SMH is the larger fund by assets ($66.4B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, SMH would generate roughly $1.58/month, while SOXL would produce $0.08/month, at current distribution rates.

SMH yield0.19%
SOXL yield0.01%
Monthly diff on $10K$1.50

Cost & efficiency

Over 10 years on $10,000, SMH would cost approximately $350 in fees vs $750 for SOXL (simplified, not compounded). The $400.00 difference may be offset by yield or performance.

SMH ER0.35%
SOXL ER0.75%

Strategy & risk

SMH tracks MVIS US Listed Semiconductor 25 Index with a technology approach, while SOXL tracks ICE Semiconductor with a leverage approach. Beta is 2.05 for SMH and 7.8 for SOXL, making SMH the less volatile of the two by this measure.

SMH beta2.05
SOXL beta7.8

Fund details

SMH is managed by VanEck (launched 12/20/2011) with $66.4B in assets. SOXL is managed by Direxion (launched 03/11/2010) with $18.1B in assets.

SMH AUM$66.4B
SOXL AUM$18.1B

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Frequently asked questions

What is the difference between SMH and SOXL?

SMH (VanEck Semiconductor ETF) holds listed semiconductor companies. SOXL (Direxion Daily Semiconductor Bull 3X Shares) seeks three times the daily semiconductor move, then resets. SOXL costs 0.75% against 0.35%. Distributions are 0.19% and 0.01% as of September 2026. SOXL is a trading vehicle, not a substitute for SMH.

What is the current distribution rate for SMH and SOXL?

SMH currently distributes 0.19% and SOXL 0.01%, based on fund data updated September 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is SMH or SOXL better for dividend income?

It depends on your goals. SMH 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.

Can I hold both SMH and SOXL?

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 SMH or SOXL safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — SMH scores 93, SOXL scores 46, so SMH's payout currently looks the more resilient of the two. SMH has also shown lower price volatility (beta 2.05 vs 7.80 for SOXL). No score makes an investment risk-free — treat this as a screening signal, not a guarantee, and the leverage, options-income, or crypto caveats flagged on this page apply regardless of score.

Which has lower fees, SMH or SOXL?

SMH has an expense ratio of 0.35% while SOXL charges 0.75%. Lower fees mean more of your investment returns stay in your pocket over time.

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

At current rates, $10,000 in SMH would generate roughly $1.58 per month ($19.00 annually). The same in SOXL would produce about $0.08 per month ($1.00 annually).

Which has performed better historically, SMH or SOXL?

SMH has lagged SOXL over the trailing twelve months, posting a 98.57% total return against 370.95%. The lead holds up over 10 years too: SOXL has compounded at 46.16% a year, against 34.01% for SMH. SMH has been the steadier holding, though — annualized volatility of 36.9% against 117.3% for SOXL. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

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SMH vs SOXL — at a glance

Generated September 5, 2026.

Overview

SMH and SOXL both track semiconductor stocks but with radically different mechanics. SMH is a traditional index ETF holding 25 semiconductor companies weighted by market cap. SOXL is a 3x leveraged daily reset fund that amplifies semiconductor moves, aiming to deliver triple the daily performance of the ICE Semiconductor Index. The choice between them hinges on time horizon, volatility tolerance, and whether you want straight index exposure or intraday leverage.

How they differ

The fundamental difference is leverage. SOXL uses financial derivatives to target 3x daily returns, while SMH simply holds the underlying stocks. This creates a cascading effect: SOXL's 7.8 dramatically exceeds SMH's 2.05, and SOXL's 0.75% fee is more than double SMH's 0.35%.

Second, their index methodologies diverge. SOXL's leveraged structure also erodes value over time when held through choppy markets, even if the underlying index rises—a cost that doesn't apply to SMH. SMH has $66.4B in assets versus SOXL's $18.1B, reflecting SMH's broader appeal to traditional buy-and-hold investors.

Who each is best for

SMH: Fits investors seeking straightforward semiconductor sector exposure without derivatives. Works for multi-year holding periods and portfolios where you want the sector beta without amplification.

SOXL: Fits tactical traders betting on near-term upside moves in semiconductors or investors willing to accept daily volatility reset mechanics and value decay in exchange for leveraged gains on strong conviction short-term rallies.

Key risks to know

  • Leverage decay in sideways or choppy markets. SOXL resets its leverage daily. In a market that rallies 10%, falls 10%, then rallies 10% again, SOXL will lag the underlying index despite positive movement—the daily rebalancing locks in losses on down days before the next up day compounds them. This effect intensifies in low-volatility environments and over multi-year horizons.
  • Index composition mismatch. SMH and SOXL track different semiconductor indexes (MVIS vs. ICE), meaning their top holdings and weightings diverge. Concentration risk may differ between them; verifying the actual holdings overlap is essential before assuming they offer equivalent sector exposure.
  • Volatility amplification and forced selling. SOXL's 7.8 means a 20% sector downturn translates to roughly a 60% drawdown in the fund. Investors caught in a sharp reversal face margin calls, forced liquidations, or catastrophic losses if unable to hold through recovery. SMH's 2.05 volatility is significant but not leveraged. Over a decade, these fees plus daily reset losses can materially erode returns even in bull markets, versus SMH's 0.35% baseline.

Bottom line

If you're building a long-term semiconductor allocation and can tolerate sector volatility, SMH offers clean index exposure with modest fees. If you're trading a near-term semiconductor surge with conviction and a short time frame—days to weeks—SOXL's leverage can amplify gains, but leverage decay and the fee burden make it a poor holding beyond tactical windows. Past performance doesn't predict future results.

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

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The metrics behind this comparison, explained in the Academy.

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