Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTDavid BerenWed, June 10, 2026 at 9:31 PM GMT+2 4 min readQuick ReadSOXX outpaced SMH by 23 percentage points in 2026, but SMH's 10-year return of 2,148% dwarfs SOXX's 1,833%.SMH concentrates in mega-cap design leaders like NVIDIA and TSMC, while SOXX tilts toward equipment makers like Applied Materials and Lam Research.SMH wins when leadership narrows to a few mega caps; SOXX wins when the broader semiconductor cycle, especially equipment names, re-rates.Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and VanEck Semiconductor ETF didn't make the cut. Grab the names FREE today.The VanEck Semiconductor ETF (NASDAQ:SMH) and the iShares Semiconductor ETF (NASDAQ:SOXX) appear to be substitutes on a fund screener. Both promise pure-play chip exposure, both charge roughly the same fee, and both ride the same AI cycle. The reason the choice still matters is that their indexes draw different lines around what counts as a chip stock and how much any one name can move the fund. In 2026, that distinction produced a return gap wide enough to reshape a portfolio.TechAnimationStock / Shutterstock.comWhat each fund is actually betting onSMH tracks the MarketVector US Listed Semiconductor 10% Capped Screened Index, a 25-stock basket that limits any single position to 10% at each rebalance. The cap matters less than the roster, and as of June 9, 2026, the top weights are NVIDIA 15.55%, TSM 9.78%, Micron 7.28%, AMD 7.22%, and Intel 6.56%.SOXX tracks the NYSE Semiconductor Index, a portfolio of about 30 holdings that moved away from the old PHLX rules in 2021. It uses tighter weighting bands that tend to push more capital toward equipment makers such as Applied Materials, Lam Research, and KLA. SMH also owns those companies, but the index design gives SOXX a stronger tilt toward the capital equipment side of the value chain. The underlying bet is on broader-cycle participation rather than on the largest design winners, a distinction that shapes how investors think about semiconductor breadth and value chain exposure. It's also important to note that SOXX's NVIDIA weight is closer to 9% versus the more than 15% SMH holds.Where the difference showed upThrough June 9, 2026, SOXX is up 86.78% year-to-date, while SMH has gained 64.11%. Over the trailing year, SOXX returned 160% versus SMH at 135%. The rally broadened in 2026, equipment names re-rated, and SOXX's wider net captured more of it.Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and VanEck Semiconductor ETF didn't make the cut. Grab the names FREE today.Run the clock back, and the picture inverts. Over five years, SMH returned 391%, compared with SOXX at 307%. Over ten, SMH gained 2,148% while SOXX added 1,833%. That long-run lead reflects the years when NVIDIA and Taiwan Semiconductor carried the sector, and SMH's heavier mega-cap tilt collected the upside.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info