SMH vs VYM
VanEck Semiconductor ETF vs Vanguard High Dividend Yield ETF
Which is better, SMH or VYM?
Large Cap Growth against Large Cap Value.
VYM has a lower expense ratio. SMH led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 82.3%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SMH | VYM |
|---|---|---|
| Expense Ratio | 0.35% | 0.04%Best |
| AUM | $71.2B | $78.9B |
| Dividend Yield | 0.18% | 2.37% |
| Holdings | 52 | 608 |
| YTD Return | +51.28%Best | +11.83% |
| 1Y Return | +69.86%Best | +15.96% |
| 3Y Return (annualized) | +56.35%Best | +18.60% |
| 5Y Return (annualized) | +34.92%Best | +11.51% |
| Volatility (annualized) | 26.0% | 14.6%Best |
| Max Drawdown | -63.5% | -58.8%Best |
| $10,000 over 5 years | $44,708Best | $17,241 |
| Top 10 Weight | 82.3% | 25.8%Best |
| Fund Family | VanEck | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Value |
| Inception | Dec 20, 2011 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Oct 14, 2026 (19.9 years).
SMH vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
SMH vs VYM Performance
VanEck Semiconductor ETF (SMH) is an ETF from VanEck and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year SMH returned +69.86% while VYM returned +15.96%. Year to date, SMH is up 51.28% versus a gain of 11.83% for VYM.
Over three years, SMH compounded at +56.35% per year against +18.60% for VYM; over five years the annualized figures are +34.92% and +11.51% respectively. Across the full 20-year window we track, SMH has the edge at +20.78% annualized vs +6.82%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMH has been the more volatile fund, with annualized monthly volatility of 26.0% compared with 14.6% for VYM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -63.5% for SMH and -58.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.62. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SMH charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, SMH currently yields 0.18% against 2.37% for VYM.
Holdings Overlap
16.8% of SMH's money is in holdings VYM also owns. 9.7% of VYM's money is in holdings SMH also owns.
SMH and VYM share little of their money.
6 positions in common, counted across the 25 positions we hold weights for in SMH and 602 in VYM, against full books of 52 and 608.
What only one of them owns
Our book lists 567 positions for VYM that do not appear in our book for SMH (88.1% of the fund), and 16 for SMH that do not appear in VYM (64.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
You are not choosing between two funds in isolation.
Whichever of SMH and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SMH or VYM?
SMH has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option, by $31 a year on a $10,000 investment.
Which performed better, SMH or VYM?
Over the past year SMH returned +69.86% vs +15.96% for VYM, so SMH leads on 1-year performance. Over the longest common window we track (20 years), SMH annualized +20.78% vs +6.82% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SMH or VYM?
SMH has been the more volatile fund at 26.0% annualized versus 14.6% for VYM. Worst drawdown: SMH -63.5% vs VYM -58.8%.
Should I hold both SMH and VYM?
SMH and VYM have a monthly-return correlation of 0.62, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between SMH and VYM?
16.8% of SMH's money is in holdings VYM also owns. 9.7% of VYM's is in holdings SMH also owns. They hold 6 positions in common, counted across the 25 positions we hold weights for in SMH and 602 in VYM.
Which pays a higher dividend, SMH or VYM?
SMH yields 0.18% while VYM yields 2.37%, so VYM currently pays the higher dividend yield.
Is VYM better than SMH?
VYM has a lower expense ratio. SMH led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 82.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.