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iShares Semiconductor ETF outperforms VanEck's SMH by 20% in 2026 due to different weighting strategies.
In 2026, the iShares Semiconductor ETF (SOXX) has outperformed the VanEck Semiconductor ETF (SMH) by about 20 percentage points due to its more balanced stock weighting. SMH focuses heavily on a few mega-cap chip companies, making it vulnerable when those leaders lag, while SOXX caps individual stock weights to spread exposure more evenly across the sector. This year’s broader leadership among chipmakers favored SOXX’s approach, though SMH has historically done better when a few giants dominate. Investors may consider shifting to SOXX or the lower-cost Invesco PHLX Semiconductor ETF (SOXQ) depending on their preference for concentration and fees.
In 2026, the iShares Semiconductor ETF (SOXX) has outperformed the VanEck Semiconductor ETF (SMH) by about 20 percentage points due to its more balanced stock weighting. SMH focuses heavily on a few mega-cap chip companies, making it vulnerable when those leaders lag, while SOXX caps individual stock weights to spread exposure more evenly across the sector. This year’s broader leadership among chipmakers favored SOXX’s approach, though SMH has historically done better when a few giants dominate. Investors may consider shifting to SOXX or the lower-cost Invesco PHLX Semiconductor ETF (SOXQ) depending on their preference for concentration and fees.
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