Dividend comparison
XLK vs SMH: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for State Street Technology Select Sector SPDR ETF and VanEck Semiconductor ETF, side by side. Updated October 21, 2026.
XLK vs SMH: key differences
The short answer, from the latest data on this page.
- Fees. XLK is cheaper at 0.08% a year versus 0.35% for SMH. On $10,000 that is $27 a year less in fees.
- Income. XLK pays more income, yielding 0.45% over the last twelve months versus 0.20% for SMH. That is about $25 more a year on $10,000. Both pay annual.
- Performance. Over the last 5 years, SMH returned 322.6% versus 142.8% for XLK, with dividends reinvested. $10,000 would have grown to $42,258 in SMH and $24,275 in XLK.
- Risk. SMH has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -45.3%, against -33.6% for XLK.
- Diversification. XLK holds 75 positions and SMH holds 26. The ten largest positions make up 65.2% of XLK and 68.1% of SMH.
- Overlap. 44% of the two portfolios overlap by weight, across 20 shared holdings.
- Dividend growth. SMH grew its yearly payout 8.9% a year over the last 4 years, versus 8.7% for XLK.
Bottom line: XLK 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.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | XLK State Street Technology Select Sector SPDR ETF | SMH VanEck Semiconductor ETF |
|---|---|---|
| Dividend yield (TTM) | 0.45% | 0.20% |
| Dividend / share (TTM) | $0.83 | $1.10 |
| Payout frequency | Annual | Annual |
| Last dividend | $0.2207 on Sep 23, 2026 | $1.1047 on Dec 26, 2025 |
| Ex-dividend date | Sep 21, 2026 | Dec 22, 2025 |
| Dividend growth (CAGR) | 8.7% over 4 yrs | 8.9% over 4 yrs |
| Price | $185.44 | $546.36 |
| Dividend growth streak | 4 years | 2 years |
| Beta | 1.35 | 1.98 |
| Max drawdown (5Y) | -33.6% | -45.3% |
| Market cap | $120.98B | $65.69B |
| Exchange | AMEX | NASDAQ |
| Expense ratio | 0.08% | 0.35% |
| Assets under management | $120.70B | $66.62B |
| Number of holdings | 75 | 26 |
| Top 10 concentration | 65.2% | 68.1% |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
XLK
$3.75/mo
$45 /yr at 0.45% yield
SMH
$1.68/mo
$20 /yr at 0.20% yield
Dividend history
Total dividends paid per share in each calendar year. XLK pays annual; SMH pays annual.
| Year | XLK | SMH |
|---|---|---|
| 2025 | $0.7840 | $1.1047 |
| 2024 | $0.7617 | $1.0713 |
| 2023 | $0.7297 | $1.0427 |
| 2022 | $0.6453 | $1.2005 |
| 2021 | $0.5613 | $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 $24,275 in XLK and $42,258 in SMH.
| Period | XLK | SMH |
|---|---|---|
| 1 month | -2.08% | -4.65% |
| 3 months | 5.66% | -2.23% |
| Year to date | 29.27% | 51.71% |
| 1 year | 29.34% | 57.84% |
| 3 years | 130.27% | 289.73% |
| 5 years | 142.75% | 322.58% |
- XLK
- 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.
- XLK
- SMH
XLK vs SMH holdings overlap
44% overlap by weight, with 20 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 | XLK weight | SMH weight |
|---|---|---|
| NVDANVIDIA CORP | 15.45% | 20.42% |
| AVGOBROADCOM INC | 4.66% | 5.49% |
| AMDADVANCED MICRO DEVICES | 4.66% | 5.43% |
| MUMICRON TECHNOLOGY INC | 3.92% | 4.63% |
| INTCINTEL CORP | 2.69% | 4.09% |
| LRCXLAM RESEARCH CORP | 1.99% | 4.07% |
| AMATAPPLIED MATERIALS INC | 1.96% | 4.16% |
| TXNTEXAS INSTRUMENTS INC | 1.52% | 4.99% |
| KLACKLA CORP | 1.31% | 4.30% |
| MRVLMARVELL TECHNOLOGY INC | 1.20% | 4.45% |
Quick verdict
XLK 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. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
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Frequently asked questions
Is XLK or SMH better for dividend income?
It depends on your goals. XLK currently yields 0.45% 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 XLK and SMH?
State Street Technology Select Sector SPDR ETF (XLK) 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, XLK or SMH?
XLK has the lower expense ratio. XLK charges 0.08% a year and SMH charges 0.35%, a difference of $27 a year on a $10,000 investment.
Which has performed better, XLK or SMH?
Over the last 5 years, SMH has the higher total return with dividends reinvested: XLK returned 142.8% and SMH returned 322.6%. Past performance does not predict future returns.
Which is riskier, XLK or SMH?
Measured by the worst peak-to-trough decline over the last five years, SMH has been riskier: XLK fell as much as 33.6% and SMH as much as 45.3%. Their betas are 1.35 and 1.98.
How much do XLK and SMH overlap?
About 44% of the two portfolios overlap by weight, across 20 shared holdings. The largest shared positions are NVDA, AVGO, AMD. Holding both still adds meaningful diversification.
How often do XLK and SMH pay dividends?
Both pay annual. The most recent payments were $0.2207 for XLK and $1.1047 for SMH.
How much income does $10,000 in XLK vs SMH generate?
At current TTM yields, $10,000 in XLK would generate roughly $3.75 per month ($45 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 XLK 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 XLK vs SMH with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how XLK 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.