Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTDavid Dierking, The Motley FoolSun, June 14, 2026 at 9:50 PM GMT+2 4 min readMicrosoft, Amazon, Alphabet, Meta Platforms, and Oracle committed to spending nearly $700 billion on capital expenditures for 2026, an 81% increase over the prior year. The majority of that spending will help these companies meet semiconductor demand.There are two primary exchange-traded funds (ETFs) that compete in this sector: the VanEck Semiconductor ETF (NASDAQ: SMH) and the iShares Semiconductor ETF (NASDAQ: SOXX). Another, the Invesco PHLX Semiconductor ETF (NASDAQ: SOXQ), is on the rise to become the third. All three hold substantially the same names. The main differences come down to cost and concentration.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »SMH is the more concentrated AI infrastructure play. SOXQ is the cheapest to own. SOXX has perhaps the hardest investment case to make of the three.Image source: Getty Images.VanEck Semiconductor ETF (SMH)SMH tracks the 25 stocks within the MVIS US Listed Semiconductor 25 Index. It is market cap-weighted with essentially no cap on individual positions. That gives the portfolio a heavier mega-cap tilt. Its top holdings are:Nvidia: 15.55%Taiwan Semiconductor Manufacturing: 9.78%Micron Technology: 7.28%Advanced Micro Devices: 7.22%Intel: 6.56%iShares Semiconductor ETF (SOXX)This ETF currently holds 30 names and tracks the ICE Semiconductor Index. It also cap-weights the portfolio, but puts limits on how much any one stock can account for. That gives it a slightly higher tilt to smaller companies. Its top holdings are:Micron: 11.04%Advanced Micro Devices: 9.51%Broadcom: 6.58%Intel: 6.53%Marvell Technology: 6.18%Invesco PHLX Semiconductor ETF (SOXQ)This ETF currently holds around 30 stocks and tracks the PHLX Semiconductor Sector Index. Its portfolio is substantially the same as SOXX's, but its 0.19% expense ratio is nearly half that of SOXX. Its top holdings are:Micron: 11.26%Nvidia: 9.12%Broadcom: 8.39%Intel: 6.67%Advanced Micro Devices: 6.51%Data by YCharts.SMH vs. SOXX vs. SOXQThe VanEck Semiconductor ETF is clearly the most top-heavy of the three, but it's also the one that's performed the best. Its 36% average annual return over the past five years easily beats the 31% average of the iShares Semiconductor ETF. Nvidia and TSMC account for 25% of SMH's portfolio. Both of them are going to be major capex spenders. This is the fund to own if you want to overweight those two stocks.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info