What is the difference between SMH, SOXX, and SOXQ?

The main differences are cost and portfolio construction. SMH is heavily concentrated in NVIDIA (about 20%), while SOXX and SOXQ are more diversified. SOXQ has the lowest expense ratio at 0.19%.

Which semiconductor ETF has the lowest expense ratio?

SOXQ has the lowest expense ratio at 0.19%, compared to 0.35% for both SMH and SOXX.

Is SMH better than SOXX?

Not necessarily. SMH offers higher exposure to NVIDIA, which can boost returns if NVIDIA rises, but it also carries more risk. SOXX is more diversified. The choice depends on investor goals.

What is the top holding in these ETFs?

NVIDIA is the top holding in all three ETFs, but with different weights: SMH holds about 20%, while SOXX and SOXQ have lower concentration.

SMH vs. SOXX vs. SOXQ: Which Semiconductor ETF Is Best?

Three semiconductor ETFs—SMH, SOXX, and SOXQ—compete for investor attention. The key differences lie in expense ratios and portfolio construction, with one ETF winning on both fronts.

Investors are turning to semiconductor ETFs to gain exposure to the AI and cloud computing boom. Three popular options are SMH (VanEck Semiconductor ETF), SOXX (iShares PHLX Semiconductor Sector Index ETF), and SOXQ (Invesco PHLX Semiconductor ETF). Which one is the best buy? The answer depends on cost and portfolio construction.

Expense Ratio (Cost)

SMH: 0.35% expense ratio.
SOXX: 0.35% expense ratio.
SOXQ: 0.19% expense ratio — the lowest of the three.

SOXQ clearly wins on cost, making it attractive for long-term investors.

Portfolio Construction

SMH: Tracks the MVIS US Listed Semiconductor 25 Index, market-cap weighted. Holds 25 stocks, with heavy concentration in NVIDIA (around 20% of the portfolio).
SOXX: Tracks the ICE Semiconductor Index, market-cap weighted. Holds 30 stocks. Top holding is also NVIDIA.
SOXQ: Tracks the PHLX Semiconductor Sector Index, market-cap weighted. Holds 30 stocks. Similar composition to SOXX.

The main difference is SMH's higher exposure to NVIDIA, which amplifies returns but also risk. SOXX and SOXQ are more diversified.

Recent Performance

No specific performance figures were provided, but the sector has been volatile due to US-China trade tensions.

What This Means for Investors

Your choice depends on your goals: if you want maximum NVIDIA exposure and can tolerate risk, SMH is suitable. If you prefer lower cost and diversification, SOXQ is the winner. SOXX sits in between. This is not a buy/sell recommendation, but an objective comparison.

SMH vs. SOXX vs. SOXQ: Which Semiconductor ETF Is Best?

Expense Ratio (Cost)

Portfolio Construction

Recent Performance

What This Means for Investors

Frequently Asked Questions