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ETF Comparison

SMH vs SOXX vs VGT vs XLK: Which Is the Better Pick in 2026?

A side-by-side comparison of VanEck Semiconductor ETF, iShares Semiconductor ETF, Vanguard Information Technology ETF and Technology Select Sector SPDR Fund covering yield, cost, risk, and income potential.

Data updated July 21, 2026

VanEck
ETFs84
Total AUM$154B

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.

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iShares
ETFs477
Total AUM$4543B

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

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

See our curated list of related YouTube videos on SOXX.

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Vanguard
ETFs116
Total AUM$4488B

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

Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.

See our curated list of related YouTube videos on VGT.

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State Street
ETFs178
Total AUM$2025B

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

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on XLK.

See all State Street ETFs

Side-by-side snapshot

SMHSOXXVGTXLK
Full nameVanEck Semiconductor ETFiShares Semiconductor ETFVanguard Information Technology ETFTechnology Select Sector SPDR Fund
IssuerVanEckiSharesVanguardState Street
Last Close$584.08 as of July 21, 2026$524.14 as of July 21, 2026$113.23 as of July 21, 2026$175.71 as of July 21, 2026
Distribution yield0.19%0.22%0.49%0.52%
Distribution Safety Score™ 938089100
Expense ratio0.35%0.35%0.10%0.09%
AUM$67.4B$45.1B$139B$115B
Distribution frequencyAnnualQuarterlyQuarterlyQuarterly
Underlying indexMVIS US Listed Semiconductor 25 IndexICE Semiconductor Indexa basket of Vanguard Information Technology ETF holdingsTechnology Select Sector Index
ObjectiveTrack the MVIS US Listed Semiconductor 25 Index.Tracks the ICE Semiconductor Index of US-listed semiconductor companies.Seeks to track the performance of the MSCI US Investable Market Index/Information Technology 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the information technology sector, including technology software and services, hardware and equipment, and semiconductor manufacturers.Track the Technology Select Sector Index, providing exposure to the information technology constituents of the S&P 500.
Asset classEquityEquityEquityEquity
Inception date12/20/201107/10/200101/26/200412/16/1998
Beta1.982.241.441.43
Last dividend$1.1050$0.2830$0.1384$0.2280
Ex-dividend date12/22/202506/15/202606/24/202609/21/2026

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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

SOXX tops the group on trailing twelve-month total return at 113.24%, with SMH at 101.68%, VGT at 32.53% and XLK at 35.23%. Across the 10-year window, SMH has the strongest compounding at 35.35% a year. Figures are total returns: price change plus every distribution reinvested.

SymbolYTD1Y3Y5Y10YSince Jan 2004Volatility Sharpe Sortino Max drawdown
SMH56.46%101.68%56.71%36.94%35.35%19.63%36.3%1.121.59-35.7%
SOXX67.27%113.24%46.88%30.85%33.12%16.28%38.5%0.891.26-41.4%
VGT20.09%32.53%27.10%18.69%24.34%14.83%24.3%0.811.14-27.2%
XLK22.06%35.23%26.70%19.73%24.05%14.76%24.6%0.791.10-25.7%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 21, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jan 2004” measures every fund from January 30, 2004 — 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

SMH (VanEck Semiconductor ETF), SOXX (iShares Semiconductor ETF), VGT (Vanguard Information Technology ETF), XLK (Technology Select Sector SPDR Fund) are dividend ETFs that take different approaches.

XLK offers the highest reported yield at 0.52%, followed by VGT at 0.49%, SOXX at 0.22%, SMH at 0.19%.

XLK is the cheapest with an expense ratio of 0.09%, compared to 0.10% for VGT and 0.35% for SMH and 0.35% for SOXX.

VGT is the largest fund by assets ($139B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment: SMH generates ~$1.58/month, SOXX generates ~$1.83/month, VGT generates ~$4.08/month, XLK generates ~$4.33/month at current distribution rates.

SMH yield0.19%
SOXX yield0.22%
VGT yield0.49%
XLK yield0.52%

Cost & efficiency

Over 10 years on $10,000: SMH costs ~$350, SOXX costs ~$350, VGT costs ~$100, XLK costs ~$90 in fees (simplified, not compounded).

SMH ER0.35%
SOXX ER0.35%
VGT ER0.10%
XLK ER0.09%

Strategy & risk

SMH tracks MVIS US Listed Semiconductor 25 Index with a technology approach; SOXX tracks ICE Semiconductor Index; VGT holds a basket of Vanguard Information Technology ETF holdings; XLK tracks Technology Select Sector Index with a technology approach.

SMH beta1.98
SOXX beta2.24
VGT beta1.44
XLK beta1.43

Fund details

SMH is managed by VanEck (launched 12/20/2011) with $67.4B in assets. SOXX is managed by iShares (launched 07/10/2001) with $45.1B in assets. VGT is managed by Vanguard (launched 01/26/2004) with $139B in assets. XLK is managed by State Street (launched 12/16/1998) with $115B in assets.

SMH AUM$67.4B
SOXX AUM$45.1B
VGT AUM$139B
XLK AUM$115B
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Frequently asked questions

Which of SMH, SOXX, VGT, and XLK is best for dividend income?

It depends on your goals. XLK currently offers the highest reported distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility, and funds without an established distribution history have no comparable yield to evaluate. Consider your time horizon and risk tolerance.

What is the difference between SMH, SOXX, VGT, and XLK?

SMH (VanEck Semiconductor ETF) tracks MVIS US Listed Semiconductor 25 Index with a technology approach, issued by VanEck. SOXX (iShares Semiconductor ETF) tracks ICE Semiconductor Index, issued by iShares. VGT (Vanguard Information Technology ETF) holds a basket of Vanguard Information Technology ETF holdings, issued by Vanguard. XLK (Technology Select Sector SPDR Fund) tracks Technology Select Sector Index with a technology approach, issued by State Street.

Can I hold SMH, SOXX, VGT, and XLK together?

Yes — nothing prevents holding them together. 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 the lowest fees among SMH, SOXX, VGT, and XLK?

SMH has an expense ratio of 0.35%, SOXX has an expense ratio of 0.35%, VGT has an expense ratio of 0.10%, XLK has an expense ratio of 0.09%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 generate in each?

$10,000 in SMH yields ~$1.58/month ($19.00/year). $10,000 in SOXX yields ~$1.83/month ($22.00/year). $10,000 in VGT yields ~$4.08/month ($49.00/year). $10,000 in XLK yields ~$4.33/month ($52.00/year).

More comparisons to explore

SMH vs SOXX vs VGT vs XLK — at a glance

Generated July 2026 from current fund data.

Overview

These four ETFs all track U.S. technology stocks but differ sharply in scope and concentration. SMH and SOXX focus exclusively on semiconductor manufacturers, while VGT and XLK cast a wider net across all technology sector stocks — software, services, hardware, and semiconductors combined. The semiconductor pair offers higher beta and lower yields; the broad tech pair offers lower volatility, higher current income, and significantly lower expense ratios.

How they differ

The biggest difference: SMH and SOXX isolate semiconductor companies only, while VGT and XLK include the entire technology sector as defined by their respective indexes. This means VGT and XLK own software giants, cloud providers, and IT services firms alongside chip makers, lowering their sector concentration and volatility.

Second, cost and income diverge sharply. VGT charges 0.10% and XLK charges 0.09% — less than one-third the 0.35% expense ratio of both semiconductor ETFs. VGT and XLK also yield roughly 2.5x more (0.47% and 0.49%) than SMH and SOXX (0.18% and 0.19%), reflecting the broader portfolios' exposure to dividend-paying software and services companies.

Third, volatility differs markedly. SMH carries a beta of 1.98 and SOXX 2.24, meaning they amplify market moves by roughly double. VGT and XLK have betas of 1.44 and 1.43, moving closer to the broader market. AUM varies too: VGT is the largest at $143B, followed by XLK at $118B, while the semiconductor pair trails at $65.1B (SMH) and $36.9B (SOXX).

Who each is best for

SMH: Investors seeking concentrated exposure to semiconductor cyclicality and growth, with high volatility tolerance and a long time horizon — chip manufacturers' fortunes swing sharply with capex cycles and technology demand.

SOXX: Fits a similar semiconductor-focused objective as SMH but entered the market earlier (2001 vs. 2011) and offers quarterly distributions instead of annual, appealing to those preferring more frequent dividend updating.

VGT: Designed for investors who want broad U.S. technology exposure at the lowest cost, with some semiconductor holdings blended into software, cloud, and IT services — suits those preferring diversification within tech and lower expense drag.

XLK: Fits investors seeking S&P 500 technology constituents only (excluding mid- and small-cap tech stocks that VGT includes), with a legacy inception date and institutional adoption, offering similar low cost and moderate income to VGT in a narrower, large-cap-only frame.

Key risks to know

  • Semiconductor cyclicality risk: SMH and SOXX are highly sensitive to chip industry cycles, capex spending, and geopolitical supply-chain disruptions. Their 2.0+ betas mean they fall harder in downturns and recessions when demand for semiconductors contracts sharply.
  • Concentration in a few holdings: Semiconductor indexes and the technology sector overall are heavily weighted to a small number of mega-cap names (like Nvidia, Intel, ASML, TSMC). SMH and SOXX concentrate this risk further by excluding non-chip tech; VGT and XLK spread it across software and services but remain tech-heavy.
  • Valuation sensitivity: Technology stocks, especially high-growth semiconductor and software companies, are vulnerable to interest rate rises and multiple compression. All four ETFs saw significant drawdowns in 2022 when rates climbed; SMH and SOXX fell harder due to higher beta.
  • Regulatory and geopolitical exposure: Semiconductor companies face export controls (China restrictions), antitrust scrutiny, and trade tensions. SMH and SOXX carry this risk as their core exposure; VGT and XLK dilute it with software and services holdings.

Bottom line

If you want pure semiconductor volatility and growth potential, SMH or SOXX fit the bill — though SOXX offers slightly higher beta and more frequent distributions. If you prefer broad technology sector exposure with lower fees, less volatility, and higher yield, VGT and XLK are the more efficient vehicles, with VGT including mid- and small-cap tech and XLK restricting itself to S&P 500 large-caps. Past performance does not guarantee future results, and all four are concentrated in technology; verify the sector's weight in your overall portfolio before allocating heavily to any of them.

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

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