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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.

Updated October 16, 2026

How these figures are calculated: methodology.

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 XSD over the trailing twelve months, posting a 57.72% total return against 33.11%. The lead holds up over 10 years too: SMH has compounded at 33.14% a year, against 25.20% 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.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Feb 2006Volatility Sharpe Sortino Max drawdown
SMH49.89%57.72%53.89%33.47%33.14%21.56%37.2%1.051.49-35.7%
XSD43.85%33.11%34.52%18.28%25.20%15.40%41.9%0.610.86-41.2%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 16, 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 Feb 2006” measures every fund from February 6, 2006 — 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. SMH's figures before its December 20, 2011 launch include its predecessor fund's history, which began May 4, 2000.

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$539.79 as of October 16, 2026$462.03 as of October 16, 2026
Distribution rate0.20%0.16%
Trailing 12-month yield0.20%0.17%
Distribution Safety Score™ 7969
Safety-Adjusted Yield 0.16%0.11%
Expense ratio0.35%0.35%
AUM$65.7B$2.64B
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
Beta2.02.76
Last dividend$1.105$0.184
Ex-dividend date12/22/202509/21/2026

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
ETFs86
Total AUM$160B

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 a broad range of asset classes, from traditional equities and fixed income to alternatives and digital assets. The firm's lineup encompasses income-focused funds, sector strategies, commodity exposure, municipal bonds, and innovative thematic products covering areas like blockchain, artificial intelligence, and emerging markets. VanEck serves both income-oriented and growth-focused investors with a diversified product suite that extends beyond conventional equity and bond offerings.

See our curated list of related YouTube videos on SMH.

See all ETFs from VanEck
State Street
ETFs186
Total AUM$2.15T

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 offers the higher yield at 0.20% vs 0.16% for XSD. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

SMH is the larger fund by assets ($65.7B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, SMH would generate roughly $20.00 cash per distribution, while XSD would produce $4.00 cash per distribution, at current distribution rates.

SMH yield0.20%
XSD yield0.16%
Cash diff on $10K$16.00

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 2.0 for SMH and 2.76 for XSD, making SMH the less volatile of the two by this measure.

SMH beta2.0
XSD beta2.76

Fund details

SMH is managed by VanEck (launched 12/20/2011) with $65.7B in assets. XSD is managed by State Street (launched 01/31/2006) with $2.64B in assets.

SMH AUM$65.7B
XSD AUM$2.64B
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Frequently asked questions

What is the current distribution rate for SMH and XSD?

SMH currently distributes 0.20% and XSD 0.16%, 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 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 79, XSD scores 69, so SMH's payout currently looks the more resilient of the two. SMH has also shown lower price volatility (beta 2.00 vs 2.76 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 $20.00 cash per distribution ($20.00 annually). The same in XSD would produce about $4.00 cash per distribution ($16.00 annually).

Which has performed better historically, SMH or XSD?

SMH has outpaced XSD over the trailing twelve months, posting a 57.72% total return against 33.11%. The lead holds up over 10 years too: SMH has compounded at 33.14% a year, against 25.20% 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 October 17, 2026.

Overview

SMH and XSD are semiconductor-focused equity ETFs that track different industry indexes and differ substantially in their underlying holdings and volatility profiles. SMH tracks the 25-stock MVIS US Listed Semiconductor 25 Index, while XSD tracks the broader S&P Semiconductor Select Industry Index. The key distinction is concentration: SMH holds a fixed 25 names, whereas XSD's composition is wider and governed by S&P's sector methodology.

How they differ

The most significant difference is index construction. SMH's 25-stock model creates higher concentration risk and a narrower competitive lens; XSD's broader S&P methodology captures more semiconductor ecosystem players, reducing single-name impact. Second, volatility differs sharply: XSD carries a 2.76 beta versus SMH's 2.0, meaning XSD amplifies market moves more than half again as much. SMH is substantially larger at $65.7B in assets compared to XSD's $2.64B, reflecting its longer track record and tighter index positioning.

Who each is best for

  • SMH: Fits investors seeking a pure-play 25-stock semiconductor concentration bet with lower volatility relative to the broader chip-equipment ecosystem; suits those comfortable with a tighter, more curated exposure to large-cap memory and logic chip makers.
  • XSD: Designed for investors who want wider sector participation and are comfortable accepting higher beta; appeals to those seeking exposure across semiconductor equipment, design, and manufacturing without the concentration of a fixed 25-name list.

Key risks to know

  • Concentration in top holdings: SMH's 25-stock architecture means performance hinges on a smaller set of mega-cap names (likely NVIDIA, Intel, Broadcom); a downturn in the largest three to five positions will move the fund significantly.
  • Higher-beta volatility in XSD: With a beta of 2.76, XSD will swing harder in both bull and bear markets than the broader market; investors should expect deeper drawdowns during semiconductor selloffs.
  • Cyclical industry and inventory risk: Both funds depend on semiconductor demand and capex cycles; cyclical downturns in chip demand or customer inventory corrections can persist for quarters, pressuring valuations across both portfolios.
  • Geopolitical exposure to Taiwan and China: The semiconductor supply chain concentrates production and intellectual property in Taiwan and portions of mainland China; trade tensions, sanctions, or supply-chain disruptions create tail risk for both funds.
  • Narrow sector overlap: Because SMH's 25-stock filter and XSD's broader index may not hold identical names, their holdings likely overlap significantly but are not identical; verify overlap if you plan to hold both.

Bottom line

If you want a curated, large-cap semiconductor play with lower volatility and simpler index mechanics, SMH's 25-stock approach and 2.0 beta offer a tighter fit. If you value broader ecosystem exposure and can tolerate XSD's 0.76 higher beta, XSD captures more of the chip-equipment and design supply chain. Both are capital-appreciation instruments with minimal income; 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.

Learn the method

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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These comparisons follow the Dividend Vision methodology.