ETF Comparison
VGT vs SMH: Which Is the Better Pick in 2026?
A head-to-head comparison of Vanguard Information Technology ETF and VanEck Semiconductor ETF covering yield, cost, risk, and income potential.
Data updated April 5, 2026
Side-by-side snapshot
| VGT | SMH | |
|---|---|---|
| Full name | Vanguard Information Technology ETF | VanEck Semiconductor ETF |
| Issuer | Vanguard | VanEck |
| Price | $706.65 | $391.97 |
| Distribution yield | 0.42% | 0.27% |
| Expense ratio | 0.09% | 0.35% |
| AUM | $126.5B | $46.2B |
| Distribution frequency | Quarterly | Quarterly |
| Underlying index | Basket (Vanguard Information Technology ETF holdings) | MVIS US Listed Semiconductor 25 Index |
| Objective | 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 MVIS US Listed Semiconductor 25 Index. |
| Asset class | Equity | Equity |
| Inception date | 01/26/2004 | 12/20/2011 |
| Beta | 1.32 | 1.67 |
| Last dividend | $0.74 | $1.10 |
| Ex-dividend date | 03/24/2026 | 12/22/2025 |
Visual comparison
Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
Quick verdict
VGT (Vanguard Information Technology ETF) and SMH (VanEck Semiconductor ETF) are both popular quarterly-pay 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. ETFs, but they take different approaches.
VGT offers the higher yield at 0.42% vs 0.27% for SMH. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
VGT is cheaper with an expense ratio of 0.09% compared to 0.35%.
They track different benchmarks: VGT is linked to Basket (Vanguard Information Technology ETF holdings) while SMH tracks MVIS US Listed Semiconductor 25 Index, which means their performance drivers differ.
VGT is the larger fund by assets ($126.5B), which generally means tighter spreads and better liquidity.
Deep dive
Yield & income
On a $10,000 investment, VGT would generate roughly $3.50/month while SMH would produce $2.25/month at current distribution rates. Both pay quarterly distributions.
Cost & efficiency
Over 10 years on $10,000, VGT would cost approximately $90 in fees vs $350 for SMH (simplified, not compounded). The $260.00 difference may be offset by yield or performance.
Strategy & risk
VGT tracks Basket (Vanguard Information Technology ETF holdings) with a 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. approach, while SMH tracks MVIS US Listed Semiconductor 25 Index using a track the mvis us listed semiconductor 25 index. strategy. Beta is 1.32 for VGT and 1.67 for SMH, indicating VGT is less volatile relative to the market.
Fund details
VGT is managed by Vanguard (launched 01/26/2004) with $126.5B in assets. SMH is managed by VanEck (launched 12/20/2011) with $46.2B in assets.
Income calculator
See how much monthly income a hypothetical investment would generate in each ETF at current yields.
Frequently asked questions
Is VGT or SMH better for dividend income?
It depends on your goals. VGT 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 VGT and SMH?
VGT (Vanguard Information Technology ETF) tracks Basket (Vanguard Information Technology ETF holdings) with a 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. strategy, while SMH (VanEck Semiconductor ETF) tracks MVIS US Listed Semiconductor 25 Index with a track the mvis us listed semiconductor 25 index. approach. They are issued by Vanguard and VanEck respectively.
Can I hold both VGT and SMH?
Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.
Which has lower fees, VGT or SMH?
VGT has an expense ratio of 0.09% 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 VGT vs SMH generate?
At current yields, $10,000 in VGT would generate roughly $3.50 per month ($42.00 annually). The same in SMH would produce about $2.25 per month ($27.00 annually).
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