Which ETF is better for AI exposure?

SMH may be better due to its higher NVIDIA concentration, but it is more volatile.

Are the fees of SMH and SOXX similar?

Yes, both have expense ratios around 0.35%.

Which ETF is more diversified?

SOXX is more diversified as it holds 30 stocks with relatively equal weighting.

SMH vs. SOXX: Which Semiconductor ETF Is the Smarter Chip Bet?

The VanEck Semiconductor ETF (SMH) and iShares Semiconductor ETF (SOXX) offer similar chip exposure but differ in index methodology. SMH is more concentrated on top players like NVIDIA, while SOXX provides broader diversification.

June 10, 2026

2 min read

Source: 24/7 Wall St.

According to a report from 24/7 Wall St., the VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF (SOXX) appear similar at first glance: both offer pure-play chip exposure, charge similar fees, and ride the same AI cycle. However, the key difference lies in their underlying indexes.

Index Difference

SMH tracks the MVIS US Listed Semiconductor 25 Index, which focuses on 25 large-cap companies, giving higher weight to giants like NVIDIA (NVDA), Applied Materials (AMAT), and Lam Research (LRCX). SOXX tracks the PHLX Semiconductor Sector Index, which includes 30 stocks with a more equal weighting.

Fees

Both ETFs charge an expense ratio of approximately 0.35%, making them cost-effective choices.

Performance and AI Exposure

Due to its heavier weighting in NVIDIA, SMH tends to outperform during AI-driven rallies but is also more volatile. SOXX, with its broader diversification, offers lower single-stock risk.

What It Means for Investors

The choice depends on your investment goals. If you seek concentrated exposure to AI leaders, SMH may be suitable. If you prefer a balanced semiconductor portfolio, SOXX is a better option. Always review the holdings before investing.

Frequently Asked Questions

SMH focuses on 25 large-cap semiconductor stocks with higher weight on NVIDIA, while SOXX holds 30 stocks with more equal weighting.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.