SMH vs. SOXX vs. SOXQ: Which Semiconductor ETF Is the Best Buy Right Now?
Written by David Dierking for The Motley Fool -> The VanEck Semiconductor ETF (SMH) is more top-heavy and allocates the most to mega-caps. The iShares Semiconductor ETF (SOXX) is more spread out to smaller companies, but is one of the more expensive choices. The Invesco PHLX S
The VanEck Semiconductor ETF (SMH) is more top-heavy and allocates the most to mega-caps.
The iShares Semiconductor ETF (SOXX) is more spread out to smaller companies, but is one of the more expensive choices.
The Invesco PHLX Semiconductor ETF (SOXQ) has a portfolio that is substantially the same as SOXX's, but with nearly half the expense ratio.
Microsoft , 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.
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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.
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:
