ETF Comparison
XLK vs SMH: Which Is the Better Pick in 2026?
A head-to-head comparison of Technology Select Sector SPDR Fund and VanEck Semiconductor ETF covering yield, cost, risk, and income potential.
Data updated April 5, 2026
Side-by-side snapshot
| XLK | SMH | |
|---|---|---|
| Full name | Technology Select Sector SPDR Fund | VanEck Semiconductor ETF |
| Issuer | State Street | VanEck |
| Price | $134.91 | $391.97 |
| Distribution yield | 0.56% | 0.27% |
| Expense ratio | 0.08% | 0.35% |
| AUM | $87.7B | $46.2B |
| Distribution frequency | Quarterly | Quarterly |
| Underlying index | Technology Select Sector Index | MVIS US Listed Semiconductor 25 Index |
| Objective | Track the Technology Select Sector Index, providing exposure to the information technology constituents of the S&P 500. | Track the MVIS US Listed Semiconductor 25 Index. |
| Asset class | Equity | Equity |
| Inception date | 12/16/1998 | 12/20/2011 |
| Beta | 1.24 | 1.67 |
| Last dividend | $0.17 | $1.10 |
| Ex-dividend date | 03/23/2026 | 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
XLK (Technology Select Sector SPDR Fund) and SMH (VanEck Semiconductor ETF) are both popular quarterly-pay track the technology select sector index, providing exposure to the information technology constituents of the s&p 500. ETFs, but they take different approaches.
XLK offers the higher yield at 0.56% vs 0.27% 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 0.08% compared to 0.35%.
They track different benchmarks: XLK is linked to Technology Select Sector Index while SMH tracks MVIS US Listed Semiconductor 25 Index, which means their performance drivers differ.
XLK is the larger fund by assets ($87.7B), which generally means tighter spreads and better liquidity.
Deep dive
Yield & income
On a $10,000 investment, XLK would generate roughly $4.67/month while SMH would produce $2.25/month at current distribution rates. Both pay quarterly distributions.
Cost & efficiency
Over 10 years on $10,000, XLK would cost approximately $80 in fees vs $350 for SMH (simplified, not compounded). The $270.00 difference may be offset by yield or performance.
Strategy & risk
XLK tracks Technology Select Sector Index with a track the technology select sector index, providing exposure to the information technology constituents of the s&p 500. approach, while SMH tracks MVIS US Listed Semiconductor 25 Index using a track the mvis us listed semiconductor 25 index. strategy. Beta is 1.24 for XLK and 1.67 for SMH, indicating XLK is less volatile relative to the market.
Fund details
XLK is managed by State Street (launched 12/16/1998) with $87.7B 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 XLK or SMH 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 XLK and SMH?
XLK (Technology Select Sector SPDR Fund) tracks Technology Select Sector Index with a track the technology select sector index, providing exposure to the information technology constituents of the s&p 500. 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 State Street and VanEck respectively.
Can I hold both XLK 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, XLK or SMH?
XLK has an expense ratio of 0.08% 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 XLK vs SMH generate?
At current yields, $10,000 in XLK would generate roughly $4.67 per month ($56.00 annually). The same in SMH would produce about $2.25 per month ($27.00 annually).
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