Dividend comparison
VGT vs SMH: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard Information Technology ETF and VanEck Semiconductor ETF, side by side. Updated October 21, 2026.
VGT vs SMH: key differences
The short answer, from the latest data on this page.
- Fees. VGT is cheaper at 0.09% a year versus 0.35% for SMH. On $10,000 that is $26 a year less in fees.
- Income. VGT pays more income, yielding 0.39% over the last twelve months versus 0.20% for SMH. That is about $19 more a year on $10,000. Both pay annual.
- Performance. Over the last 5 years, SMH returned 322.6% versus 132.3% for VGT, with dividends reinvested. $10,000 would have grown to $42,258 in SMH and $23,232 in VGT.
- Risk. SMH has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -45.3%, against -35.1% for VGT.
- Diversification. VGT holds 310 positions and SMH holds 26. The ten largest positions make up 63.6% of VGT and 68.1% of SMH.
- Overlap. 41% of the two portfolios overlap by weight, across 21 shared holdings.
- Dividend growth. SMH grew its yearly payout 8.9% a year over the last 4 years, versus 1.0% for VGT.
- Size. VGT is the larger fund with $178.0 billion in assets, against $66.6 billion for SMH.
Bottom line: VGT fits better if you care most about lower fees, smaller drawdowns and broader diversification. SMH fits better if you care most about stronger 5-year returns and faster dividend growth.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | VGT Vanguard Information Technology ETF | SMH VanEck Semiconductor ETF |
|---|---|---|
| Dividend yield (TTM) | 0.39% | 0.20% |
| Dividend / share (TTM) | $0.47 | $1.10 |
| Payout frequency | Annual | Annual |
| Last dividend | $0.1465 on Sep 25, 2026 | $1.1047 on Dec 26, 2025 |
| Ex-dividend date | Sep 23, 2026 | Dec 22, 2025 |
| Dividend growth (CAGR) | 1.0% over 4 yrs | 8.9% over 4 yrs |
| Price | $120.20 | $546.36 |
| Dividend growth streak | — | 2 years |
| Beta | 1.35 | 1.98 |
| Max drawdown (5Y) | -35.1% | -45.3% |
| Market cap | $138.44B | $65.69B |
| Exchange | AMEX | NASDAQ |
| Expense ratio | 0.09% | 0.35% |
| Assets under management | $178.00B | $66.62B |
| Number of holdings | 310 | 26 |
| Top 10 concentration | 63.6% | 68.1% |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
VGT
$3.28/mo
$39 /yr at 0.39% yield
SMH
$1.68/mo
$20 /yr at 0.20% yield
Dividend history
Total dividends paid per share in each calendar year. VGT pays annual; SMH pays annual.
| Year | VGT | SMH |
|---|---|---|
| 2025 | $0.3810 | $1.1047 |
| 2024 | $0.4644 | $1.0713 |
| 2023 | $0.3904 | $1.0427 |
| 2022 | $0.3636 | $1.2005 |
| 2021 | $0.3654 | $0.7865 |
Strategy: Sector and thematic
Funds that hold a single industry or theme, such as technology, semiconductors, healthcare or energy. Funds covering the same sector can still differ in concentration rules: some cap the largest positions while others let the biggest companies take a quarter of the fund. Sector funds are usually used to tilt a portfolio rather than as its core.
A single sector can fall far further than the broad market and stay down for years, and the largest names often dominate the fund.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $23,232 in VGT and $42,258 in SMH.
| Period | VGT | SMH |
|---|---|---|
| 1 month | -1.61% | -4.65% |
| 3 months | 6.28% | -2.23% |
| Year to date | 28.02% | 51.71% |
| 1 year | 26.74% | 57.84% |
| 3 years | 138.07% | 289.73% |
| 5 years | 132.32% | 322.58% |
- VGT
- SMH
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
- VGT
- SMH
VGT vs SMH holdings overlap
41% overlap by weight, with 21 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
| Largest shared holdings | VGT weight | SMH weight |
|---|---|---|
| NVDANVIDIA Corp | 17.58% | 20.42% |
| MUMicron Technology Inc | 4.45% | 4.63% |
| AVGOBroadcom Inc | 4.11% | 5.49% |
| AMDAdvanced Micro Devices Inc | 3.67% | 5.43% |
| INTCIntel Corp | 1.98% | 4.09% |
| LRCXLam Research Corp | 1.55% | 4.07% |
| AMATApplied Materials Inc | 1.53% | 4.16% |
| KLACKLA Corp | 0.98% | 4.30% |
| TXNTexas Instruments Inc | 0.98% | 4.99% |
| MRVLMarvell Technology Inc | 0.88% | 4.45% |
Quick verdict
VGT fits better if you care most about lower fees, smaller drawdowns and broader diversification. SMH fits better if you care most about stronger 5-year returns and faster dividend growth. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
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Frequently asked questions
Is VGT or SMH better for dividend income?
It depends on your goals. VGT currently yields 0.39% Trailing Twelve Months (TTM) while SMH yields 0.20%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between VGT and SMH?
Vanguard Information Technology ETF (VGT) is an ETF listed on AMEX. VanEck Semiconductor ETF (SMH) is an ETF listed on NASDAQ. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, VGT or SMH?
VGT has the lower expense ratio. VGT charges 0.09% a year and SMH charges 0.35%, a difference of $26 a year on a $10,000 investment.
Which has performed better, VGT or SMH?
Over the last 5 years, SMH has the higher total return with dividends reinvested: VGT returned 132.3% and SMH returned 322.6%. Past performance does not predict future returns.
Which is riskier, VGT or SMH?
Measured by the worst peak-to-trough decline over the last five years, SMH has been riskier: VGT fell as much as 35.1% and SMH as much as 45.3%. Their betas are 1.35 and 1.98.
How much do VGT and SMH overlap?
About 41% of the two portfolios overlap by weight, across 21 shared holdings. The largest shared positions are NVDA, MU, AVGO. Holding both still adds meaningful diversification.
How often do VGT and SMH pay dividends?
Both pay annual. The most recent payments were $0.1465 for VGT and $1.1047 for SMH.
How much income does $10,000 in VGT vs SMH generate?
At current TTM yields, $10,000 in VGT would generate roughly $3.28 per month ($39 annually). The same amount in SMH would produce about $1.68 per month ($20 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both VGT and SMH?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare VGT vs SMH with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how VGT and SMH fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.