iShares Semiconductor ETF’s capped methodology delivers 72% YTD returns, surpassing VanEck’s market-cap-weighted fund by 20 percentage points.
The iShares Semiconductor ETF (SOXX) has outperformed the VanEck Semiconductor ETF (SMH) by roughly 20 percentage points year to date in 2026. SOXX’s evenly distributed weighting, rather than stock selection, drove its 72% return, compared to SMH’s concentrated exposure to top chip firms.
SMH, a market-cap-weighted fund, holds 71% of its assets in its top 10 positions, including AMD (10.33%), Broadcom (9.57%), and NVIDIA (8.4%) as of May 27, 2026. SOXX, tracking the NYSE Semiconductor Index with a capped methodology, spreads weights more evenly, reducing reliance on a few large-cap stocks.
SOXX also charges a 0.10% fee, roughly a third of SMH’s expense ratio, adding to its appeal for investors seeking broader semiconductor exposure.