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ETF Comparison

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

A head-to-head comparison of VanEck Semiconductor ETF and State Street SPDR S&P Semiconductor ETF covering yield, cost, risk, and income potential.

Data updated September 4, 2026

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 XSD over the trailing twelve months, posting a 98.57% total return against 74.62%. The lead holds up over 10 years too: SMH has compounded at 34.01% a year, against 25.79% for XSD. 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.
SymbolYTD1Y3Y5Y10YSince Feb 2006Volatility Sharpe Sortino Max drawdown
SMH51.89%98.57%54.30%33.71%34.01%21.98%36.9%1.061.50-35.7%
XSD46.68%74.62%32.62%19.27%25.79%15.83%41.5%0.570.81-41.2%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 4, 2026. YTD and 1Y are cumulative; windows of one year or longer are annualized. “Since Feb 2006” measures every fund from February 6, 2006 — 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.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricSMHXSD
Full nameVanEck Semiconductor ETFState Street SPDR S&P Semiconductor ETF
IssuerVanEckState Street
Last Close$567.01 as of September 4, 2026$491.45 as of September 4, 2026
Distribution yield0.19%0.19%
Distribution Safety Score™ 9363
Safety-Adjusted Yield 0.18%0.12%
Expense ratio0.35%0.35%
AUM$66.4B$2.53B
Distribution frequencyAnnualQuarterly
Underlying indexMVIS US Listed Semiconductor 25 Index—
ObjectiveTrack the MVIS US Listed Semiconductor 25 Index.—
Asset classEquityEquity
Inception date12/20/201101/31/2006
Beta2.052.77
Last dividend$1.105$0.233
Ex-dividend date12/22/202506/22/2026

Bottom lineSMH and XSD are nearly interchangeable — both offer very similar semiconductors exposure with very similar cost and risk. Fees are effectively identical, so it comes down to which your broker offers commission-free and any share-price or tax-lot preference.

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

VanEck
ETFs85
Total AUM$165B

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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State Street
ETFs179
Total AUM$2124B

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 XSD.

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Quick verdict

SMH (VanEck Semiconductor ETF) and XSD (State Street SPDR S&P Semiconductor ETF) are both dividend ETFs, but they take different approaches.

SMH is the larger fund by assets ($66.4B), 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 XSD would produce $1.58/month, at current distribution rates.

SMH yield0.19%
XSD yield0.19%
Monthly diff on $10K$0.00

Cost & efficiency

Over 10 years on $10,000, SMH would cost approximately $350 in fees vs $350 for XSD (simplified, not compounded). Both charge the same expense ratio.

SMH ER0.35%
XSD ER0.35%

Strategy & risk

SMH tracks MVIS US Listed Semiconductor 25 Index with a technology approach, while XSD is an ETF built around technology exposure. Beta is 2.05 for SMH and 2.77 for XSD, making SMH the less volatile of the two by this measure.

SMH beta2.05
XSD beta2.77

Fund details

SMH is managed by VanEck (launched 12/20/2011) with $66.4B in assets. XSD is managed by State Street (launched 01/31/2006) with $2.53B in assets.

SMH AUM$66.4B
XSD AUM$2.53B
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Frequently asked questions

What is the current distribution yield for SMH and XSD?

SMH currently distributes 0.19% and XSD 0.19%, based on fund data updated September 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is SMH or XSD better for dividend income?

It depends on your goals. SMH 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 XSD?

SMH (VanEck Semiconductor ETF) tracks MVIS US Listed Semiconductor 25 Index with a technology approach, while XSD (State Street SPDR S&P Semiconductor ETF) is an ETF built around technology exposure. They are issued by VanEck and State Street respectively.

Can I hold both SMH and XSD?

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 XSD safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — SMH scores 93, XSD scores 63, so SMH's payout currently looks the more resilient of the two. SMH has also shown lower price volatility (beta 2.05 vs 2.77 for XSD). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, SMH or XSD?

SMH and XSD both charge the same expense ratio of 0.35%, so neither is cheaper on fees — pick based on yield, strategy, or underlying index instead.

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

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

Which has performed better historically, SMH or XSD?

SMH has outpaced XSD over the trailing twelve months, posting a 98.57% total return against 74.62%. The lead holds up over 10 years too: SMH has compounded at 34.01% a year, against 25.79% for XSD. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

SMH vs XSD — at a glance

Generated August 29, 2026.

Overview

SMH and XSD are both semiconductor-focused equity ETFs tracking the same industry, but they differ fundamentally in index construction and liquidity. SMH tracks the MVIS US Listed Semiconductor 25 Index — a capped portfolio of 25 large-cap semiconductor names — while XSD tracks the S&P Semiconductor Select Industry Index, which covers a broader swath of the sector. SMH has $66.4B in assets and has been running since 2011; XSD holds $2.53B and launched in 2006.

How they differ

The biggest distinction is index breadth: SMH's 25-name concentration versus XSD's broader exposure. This shows up directly in beta — SMH reports 2.05, XSD 2.77 — suggesting XSD's wider constituent base adds volatility, possibly because it captures smaller or more cyclical semiconductor names that amplify sector swings. Both charge the same 0.35% expense ratio and pay minimal distributions (0.19% and 0.19%), so the cost difference is negligible. The real gap is size: SMH's $66.4B in AUM dwarfs XSD's $2.53B, meaning SMH offers tighter spreads and deeper liquidity for most retail and institutional investors.

Who each is best for

SMH: Fits investors seeking broad large-cap semiconductor exposure through a liquid, low-cost vehicle. The 25-name index design and massive AUM appeal to those who want sector participation without extreme volatility or the need to hand-pick individual chips stocks.

XSD: Designed for investors comfortable with higher volatility in exchange for potentially broader sector capture. The narrower AUM and higher beta may suit those with longer time horizons who want exposure beyond the mega-cap semiconductor names SMH emphasizes.

Key risks to know

  • Sector concentration. Both ETFs are entirely dependent on semiconductor industry health — any downturn in chip demand, supply-chain disruption, or geopolitical pressure (especially around Taiwan) can drive sharp losses for either fund.
  • Amplified market sensitivity. XSD's beta of 2.77 means it swings nearly three times as hard as the broad market during downturns; SMH's 2.05 beta is still elevated and leaves little room for defensive positioning.
  • Index construction gap. SMH's cap-weighted 25-name approach concentrates risk in the largest players (likely NVIDIA, Intel, TSMC exposure); XSD's broader index may diversify that somewhat but introduces exposure to smaller firms with higher failure risk in down cycles.
  • Minimal income potential. With distribution rates of 0.19% and 0.19%, neither ETF is held for yield. Investors relying on distributions will be disappointed; total return depends almost entirely on price appreciation.

Bottom line

If you want maximum liquidity and large-cap semiconductor exposure with tighter volatility, SMH's $66.4B asset base and lower beta stand out. If you're willing to accept higher sector-wide swings and prefer a broader definition of "semiconductor," XSD's wider index may suit a longer-horizon allocation — but confirm its constituent overlap with SMH aligns with your holdings elsewhere. Past performance in semiconductors has been outsized; neither fund hedges against the cyclicality inherent in the space.

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

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The metrics behind this comparison, explained in the Academy.

Dividend growth vs. high yield Yield on cost, explained How expense ratios eat returns

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