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Dividend Vision

ETF Comparison

VGT vs SMH: Own Broad Tech, or Just Semiconductors?

A head-to-head of Vanguard Information Technology and VanEck Semiconductor covering concentration and cost, not a tiny yield gap.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

  • SMHInvestors who want targeted semiconductor exposure and accept industry concentration.
  • VGTInvestors who want broader information-technology exposure and accept sector concentration.

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

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

SMH has outpaced VGT over the trailing twelve months, posting a 89.57% total return against 37.02%. The lead holds up over 10 years too: SMH has compounded at 35.00% a year, against 25.03% for VGT. VGT has been the steadier holding, though — annualized volatility of 24.6% against 37.0% 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.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Jan 2004Volatility Sharpe Sortino Max drawdown
SMH68.93%89.57%63.49%38.33%35.00%19.85%37.0%1.211.73-35.7%
VGT36.25%37.02%35.55%21.10%25.03%15.33%24.6%1.061.52-27.2%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Jan 2004” measures every fund from January 30, 2004 — the start of shared available history — 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.
MetricSMHVGT
Full nameVanEck Semiconductor ETFVanguard Information Technology ETF
IssuerVanEckVanguard
Underlying indexMVIS US Listed Semiconductor 25 IndexMSCI US Investable Market Index/Information Technology 25/50
Last Close$630.60 as of October 2, 2026$128.32 as of October 2, 2026
Distribution rate0.18%0.46%
Trailing 12-month yield0.18%0.37%
Distribution Safety Score™ 7993
Safety-Adjusted Yield 0.14%0.43%
Expense ratio0.35%0.09%
AUM$74.6B$155B
Distribution frequencyAnnualQuarterly
ObjectiveTrack the MVIS US Listed Semiconductor 25 Index.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.
Asset classEquityEquity
Inception date12/20/201101/26/2004
Beta2.061.49
Last dividend$1.105$0.1465
Ex-dividend date12/22/202509/23/2026

Bottom lineChoose SMH if you want targeted semiconductor exposure and accept industry concentration. Choose VGT if you want broader information-technology exposure and accept sector concentration.

Semiconductors versus broad information technology

SMH is a semiconductor book. VGT is a full information-technology sleeve. Concentration, not a tiny yield gap, is the decision.

SMHVGT
BookSemiconductor industryBroad information technology
Expense ratio0.35%0.09%
Fund size$74.6B$155B
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VanEck
ETFs85
Total AUM$171B

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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Vanguard
ETFs116
Total AUM$4676B

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

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on VGT.

See all Vanguard ETFs

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Quick verdict

SMH (VanEck Semiconductor ETF) and VGT (Vanguard Information Technology ETF) are both dividend ETFs, but they take different approaches.

VGT offers the higher yield at 0.46% vs 0.18% 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 have different reference exposures: SMH is linked to MVIS US Listed Semiconductor 25 Index while VGT is linked to MSCI US Investable Market Index/Information Technology 25/50, which means their performance drivers differ.

VGT is the larger fund by assets ($155B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, SMH would generate roughly $18.00 cash per distribution, while VGT would produce $11.50 cash per distribution, at current distribution rates.

SMH yield0.18%
VGT yield0.46%
Cash diff on $10K$6.50

Cost & efficiency

Over 10 years on $10,000, SMH would cost approximately $350 in fees vs $90 for VGT (simplified, not compounded). The $260.00 difference may be offset by yield or performance.

SMH ER0.35%
VGT ER0.09%

Strategy & risk

SMH tracks MVIS US Listed Semiconductor 25 Index with a technology approach, while VGT tracks MSCI US Investable Market Index/Information Technology 25/50 with an index approach. Beta is 2.06 for SMH and 1.49 for VGT, making VGT the less volatile of the two by this measure.

SMH beta2.06
VGT beta1.49

Fund details

SMH is managed by VanEck (launched 12/20/2011) with $74.6B in assets. VGT is managed by Vanguard (launched 01/26/2004) with $155B in assets.

SMH AUM$74.6B
VGT AUM$155B
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Frequently asked questions

What is the difference between SMH and VGT?

SMH (VanEck Semiconductor ETF) is a semiconductor book. VGT (Vanguard Information Technology ETF) is a broad information-technology ETF. Industry concentration, not a tiny yield gap, is the split. Cost is 0.35% versus 0.09%; size is $74.6B versus $155B. Distributions are 0.18% and 0.46% as of October 2026.

What is the current distribution rate for SMH and VGT?

SMH currently distributes 0.18% and VGT 0.46%, based on fund data updated October 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 VGT 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.

Can I hold both SMH and VGT?

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 VGT safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — VGT scores 93, SMH scores 79, so VGT's payout currently looks the more resilient of the two. VGT has also shown lower price volatility (beta 1.49 vs 2.06 for SMH). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, SMH or VGT?

SMH has an expense ratio of 0.35% while VGT charges 0.09%. Lower fees mean more of your investment returns stay in your pocket over time.

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

At current rates, $10,000 in SMH would generate roughly $18.00 cash per distribution ($18.00 annually). The same in VGT would produce about $11.50 cash per distribution ($46.00 annually).

Which has performed better historically, SMH or VGT?

SMH has outpaced VGT over the trailing twelve months, posting a 89.57% total return against 37.02%. The lead holds up over 10 years too: SMH has compounded at 35.00% a year, against 25.03% for VGT. VGT has been the steadier holding, though — annualized volatility of 24.6% against 37.0% for SMH. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

SMH vs VGT — at a glance

Generated October 3, 2026.

Overview

SMH and VGT are both equity ETFs tracking the U.S. technology sector, but they differ in breadth and specificity. The key trade-off is concentration versus diversification: SMH offers a pure-play semiconductor bet, while VGT provides balanced exposure across the tech landscape.

How they differ

SMH's single biggest distinction is its narrow focus: it holds only 25 semiconductor companies, making it a concentrated sector play. VGT, by contrast, encompasses the full breadth of U.S. tech—software giants, equipment makers, semiconductor manufacturers, and services firms—giving it far wider exposure.

On fees, VGT wins decisively. Its expense ratio of 0.09% is less than one-third of SMH's 0.35%, a 0.26% percentage-point gap that compounds meaningfully over decades. On size, VGT dominates with $155B in assets versus SMH's $74.6B.

The most striking volatility difference appears in beta: SMH carries a 2.06 beta, nearly 40% more responsive to broad market swings than VGT's 1.49. This reflects semiconductor stocks' historical sensitivity to economic cycles and chip-cycle booms and busts.

Who each is best for

SMH: Fits investors with higher risk tolerance who believe semiconductor demand will outpace the broader tech sector and want concentrated exposure to that thesis. The narrow 25-stock index suits those comfortable with cyclical upside and downside.

VGT: Fits investors seeking broad-based technology exposure without the volatility and concentration of a semiconductor-only fund. Works for those who want tech diversification spanning software, hardware, and chip makers without paying outsized fees.

Key risks to know

  • Semiconductor cyclicality. SMH's concentrated bet on 25 chip companies means it will amplify the semiconductor industry's notorious boom-bust cycles—periods of oversupply and margin compression can hit the fund harder and faster than diversified tech indices. VGT's broader mix dampens this exposure.
  • Sector concentration vs. tech breadth. SMH's focus on one subsector means geopolitical or trade shocks specific to semiconductor manufacturing (Taiwan exposure, China restrictions, supply chain disruption) hit it disproportionately. VGT spreads risk across software, services, and hardware alongside semiconductors.
  • Volatility and beta gap. SMH's 2.06 beta versus VGT's 1.49 means SMH will experience larger drawdowns in tech sell-offs and larger gains in rallies. Investors uncomfortable with 30%+ single-year swings in a concentrated sector should note this difference.
  • Valuation cyclicality in semiconductors. Chip stocks trade on multi-year cycles driven by capacity, pricing, and innovation—not just earnings growth. SMH holders face timing risk if they buy near peak valuations in the cycle.

Bottom line

If you believe semiconductors will significantly outperform the rest of tech and can tolerate concentrated, volatile exposure, SMH offers a pure play. If you want technology sector exposure with lower fees (0.09% vs. 0.35%), broader holdings, and steadier income, VGT is the more balanced choice. Past performance does not guarantee future results, and semiconductor cycles are notoriously unpredictable—even high conviction bets can time poorly.

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

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These comparisons follow the Dividend Vision methodology.