ETF Comparison

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

A head-to-head comparison of VanEck Semiconductor ETF and Technology Select Sector SPDR Fund covering yield, cost, risk, and income potential.

Data updated July 4, 2026

VanEck

ETFs83

Total AUM$156B

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

State Street

ETFs182

Total AUM$2107B

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

	SMH	XLK
Full name	VanEck Semiconductor ETF	Technology Select Sector SPDR Fund
Issuer	VanEck	State Street
Last Close	$592.29 as of July 4, 2026	$180.59 as of July 4, 2026
Distribution yield	0.19%	0.51%
Distribution Safety Score	93	99
Expense ratio	0.35%	0.09%
AUM	$65.1B	$118B
Distribution frequency	Annual	Quarterly
Underlying index	MVIS US Listed Semiconductor 25 Index	Technology Select Sector Index
Objective	Track the MVIS US Listed Semiconductor 25 Index.	Track the Technology Select Sector Index, providing exposure to the information technology constituents of the S&P 500.
Asset class	Equity	Equity
Inception date	12/20/2011	12/16/1998
Beta	1.97	1.42
Last dividend	$1.1050	$0.2280
Ex-dividend date	12/22/2025	09/21/2026

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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

SMH has outpaced XLK over the trailing twelve months, posting a 115.39% total return against 44.50%. The lead holds up over 10 years too: SMH has compounded at 36.81% a year, against 24.87% for XLK. XLK has been the steadier holding, though — annualized volatility of 24.4% against 36.0% for SMH. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since May 2000	Volatility	Sharpe	Sortino	Max drawdown
SMH	58.66%	115.39%	57.57%	36.41%	36.81%	13.26%	36.0%	1.14	1.63	-35.7%
XLK	25.30%	44.50%	28.51%	20.41%	24.87%	8.80%	24.4%	0.85	1.19	-25.7%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since May 2000” measures every fund from May 5, 2000 — 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) and XLK (Technology Select Sector SPDR Fund) are both dividend ETFs, but they take different approaches.

XLK offers the higher yield at 0.51% vs 0.19% for SMH. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

XLK is cheaper with an expense ratio of 0.09% compared to 0.35%.

They track different benchmarks: SMH is linked to MVIS US Listed Semiconductor 25 Index while XLK tracks Technology Select Sector Index, which means their performance drivers differ.

XLK is the larger fund by assets ($118B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, SMH would generate roughly $1.58/month, while XLK would produce $4.25/month, at current distribution rates.

SMH yield0.19%

XLK yield0.51%

Monthly diff on $10K$2.67

Cost & efficiency

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

SMH ER0.35%

XLK ER0.09%

Strategy & risk

SMH tracks MVIS US Listed Semiconductor 25 Index with a technology approach, while XLK tracks Technology Select Sector Index with a technology approach. Beta is 1.97 for SMH and 1.42 for XLK, indicating XLK is less volatile relative to the market.

SMH beta1.97

XLK beta1.42

Fund details

SMH is managed by VanEck (launched 12/20/2011) with $65.1B in assets. XLK is managed by State Street (launched 12/16/1998) with $118B in assets.

SMH AUM$65.1B

XLK AUM$118B

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Frequently asked questions

Is SMH or XLK better for dividend income?

It depends on your goals. XLK 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 SMH and XLK?

SMH (VanEck Semiconductor ETF) tracks MVIS US Listed Semiconductor 25 Index with a technology approach, while XLK (Technology Select Sector SPDR Fund) tracks Technology Select Sector Index with a technology approach. They are issued by VanEck and State Street respectively.

Can I hold both SMH and XLK?

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, SMH or XLK?

SMH has an expense ratio of 0.35% while XLK 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 XLK generate?

At current rates, $10,000 in SMH would generate roughly $1.58 per month ($19.00 annually). The same in XLK would produce about $4.25 per month ($51.00 annually).

Which has performed better historically, SMH or XLK?

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SMH vs XLK — at a glance

Generated June 2026 from current fund data.

Overview

SMH and XLK are both technology-focused equity ETFs tracking different indexes, but they occupy very different niches. SMH zeroes in on semiconductor manufacturers—a concentrated 25-stock index of chip designers and makers—while XLK owns all information technology constituents of the S&P 500, spanning semiconductors, software, hardware, and services. The key distinction: SMH is a narrowly focused sector play; XLK is a broad technology bet within the larger market.

How they differ

The biggest difference is scope. SMH tracks 25 semiconductor companies; XLK tracks roughly 70+ tech stocks across the entire IT sector. This concentration makes SMH roughly 40% more volatile, with a beta of 1.97 versus XLK's 1.42. Second, cost and scale work in XLK's favor: its expense ratio is 0.09% compared to SMH's 0.35%, and XLK has $118B in assets versus SMH's $65.1B. Third, income is negligible for both, but XLK pays quarterly at 0.49% yield while SMH pays just 0.17% annually—a difference driven by SMH's higher reinvestment of earnings into growth.

Who each is best for

SMH: Fits investors with high risk tolerance who believe semiconductor demand will outpace the broader tech sector and are comfortable with concentrated exposure to a single supply-chain segment.

XLK: Fits investors seeking broad technology exposure with lower volatility, lower fees, and quarterly distributions—a core holding for tech allocation without single-industry concentration risk.

Key risks to know

Semiconductor cyclicality (SMH): Chip demand is tied to capital spending and consumer electronics cycles; when capex contracts, SMH can see steep drawdowns that broader tech indices weather better.

Valuation sensitivity (both, but sharper for SMH): Tech stocks are growth-dependent; rising rates and multiple compression hit high-beta semiconductor stocks harder than diversified tech.

Concentration risk (SMH): A 25-stock index means the top 10 holdings likely represent 50%+ of the fund; a major fab shutdown, tariff surprise, or chip design shift can significantly impact NAV.

China exposure (SMH): Semiconductor companies have meaningful revenue and supply-chain exposure to China; geopolitical or trade friction creates idiosyncratic risk absent in the broader S&P 500.

Earnings-dependent growth (XLK): Software and cloud valuations in XLK are highly dependent on interest rates; a sustained rise in Treasury yields may pressure multiples across the sector.

Bottom line

If you want concentrated upside in a specific supply-chain segment and can tolerate roughly 40% higher volatility, SMH offers pure-play semiconductor exposure. If you prefer diversified technology with lower fees, lower beta, and quarterly income, XLK is the broader, steadier option. 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.