BlackRock’s iShares Semiconductor ETF (SOXX) is the fund behind the headline. In the one-year comparison published by 24/7 Wall St. on October 6, 2026, SOXX returned 111.56% versus 89.13% for VanEck Semiconductor ETF (SMH), a lead of 22.43 percentage points.
That result is real, but it is not proof that SOXX is the better long-term holding. In the same report, SMH led over five years (415% versus 315.32%) and ten years (1,901.44% versus 1,618.66%). The sensible question is therefore not whether SOXX won one period, but whether its index design, concentration and tax consequences fit your portfolio better than SMH.
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What the October 2026 comparison actually measured
The figures are period returns reported by 24/7 Wall St. They are not a forecast, and the report does not establish that the two funds will keep the same ranking. Because the one-year figure is a trailing period cited in an October 6, 2026 article, it should not be confused with a complete calendar-year return.
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|---|---|---|---|---|
| One month | 13.64% | 11.96% | SOXX | 1.68 percentage points |
| Year to date | 96.38% | 76.28% | SOXX | 20.10 percentage points |
| Trailing one year | 111.56% | 89.13% | SOXX | 22.43 percentage points |
| Five years | 315.32% | 415% | SMH | 99.68 percentage points |
| Ten years | 1,618.66% | 1,901.44% | SMH | 282.78 percentage points |
A percentage-point spread is simple subtraction: 111.56 minus 89.13 equals 22.43. It is different from saying SOXX produced 22.43% more than SMH on a relative basis. The report presents these as returns for the named periods; check the provider’s methodology and exact start and end dates before using them for a trade decision.
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The shorter windows point in the same direction as the one-year result: SOXX was ahead by 1.68 points for one month and 20.10 points year to date. The longer windows reverse the ranking. SMH’s five-year advantage was almost 100 points, and its ten-year advantage was more than 280 points in the cited data.
Why a one-year winner can be a long-term laggard
Two ETFs can own the same broad industry while producing very different results because their indexes assign different weights, include different securities and rebalance on different schedules. A period dominated by a particular chip segment or a few large companies can reward one construction and penalize the other.
Different benchmarks
SOXX tracks the NYSE Semiconductor Index. SMH tracks the MVIS US Listed Semiconductor 25 Index. Those are separate rulebooks, not two share classes of the same portfolio. Their eligibility screens, weighting formulas, treatment of non-U.S. companies and rebalancing rules can all affect returns.
The index name for SMH references 25 constituents, but the cited article does not provide a current holding count for either ETF or a complete composition comparison. Use each sponsor’s current holdings file and index methodology when making a present-day comparison; a historical return table cannot tell you what each fund owns today.
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Different periods capture different market leadership
Semiconductor leadership rotates among chip designers, manufacturers, equipment companies and memory businesses. If the companies receiving the largest weights in one index surge during the measurement window, that ETF can lead even if the other fund has a stronger record over a full cycle. The five- and ten-year figures show why a single trailing year should be treated as a snapshot rather than a permanent ranking.
SMH’s NVIDIA exposure is a portfolio decision, not a footnote
SMH’s June 30, 2026 holdings filing assigned 17.54% of net assets to NVIDIA and 9.28% to Taiwan Semiconductor Manufacturing. Those are large individual positions. A major earnings report, forecast change or valuation move at either company can therefore have a noticeable effect on SMH’s daily and cumulative returns.
Concentration can help when a heavily weighted company leads the sector, which may have contributed to SMH’s stronger five- and ten-year result. It also creates single-company risk: a disappointment at a top holding can hurt the ETF more than it would hurt a portfolio with lower position limits. The 17.54% and 9.28% figures are from the June 30 filing, not a promise about current weights; holdings change with market prices, creations and redemptions, and index rebalances.
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Do not assume SOXX has the same exposure in a smaller amount. Its benchmark is different, so compare the current top holdings, weights and sector or industry classifications side by side. A fund that appears more diversified by name may still be dominated by a few securities, while a fund with fewer apparent names can have different exposure to manufacturers, equipment makers or designers.
Should you switch from SMH to SOXX?
The 22.43-point one-year lead is not, by itself, a reason to sell. A switch makes more sense when the new fund better matches your intended risk, diversification and holding period. Work through the following questions before placing an order.
1. Define the role of the position
Decide whether the ETF is a small satellite allocation to semiconductors or a core equity holding. A concentrated sector fund can behave very differently from a broad-market ETF. If the position is already large relative to your total portfolio, reducing sector exposure may matter more than choosing between two semiconductor funds.
2. Compare what you would own today
Open the latest holdings pages for SOXX and SMH and record the top positions, each weight, the number of holdings and the split among chip designers, foundries, equipment suppliers and other businesses. Use the same date for both funds. The October 2026 performance table cannot substitute for this current snapshot.
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Look for the eligibility rules, weighting caps, country and listing requirements, rebalance dates and how additions or deletions are handled. The NYSE Semiconductor Index and MVIS US Listed Semiconductor 25 Index are not interchangeable. Understanding those rules helps explain why the funds can diverge even when their largest names overlap.
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4. Check fees and trading conditions on the same date
Expense ratios, assets and liquidity can change. Pull the current expense ratio and net assets from each sponsor, then compare typical bid-ask spreads and the dollar volume you expect to trade. A small fee difference matters more over a long holding period, while spread and liquidity matter most when entering or exiting sizable orders. The cited performance report does not supply current fee or asset figures, so do not rely on an old comparison.
5. Match the decision to your time horizon
If your thesis is a short tactical trade, recent momentum and the current holdings may be relevant, but the risk of rapid reversal is high. If you plan to hold for many years, the five- and ten-year record, index rules and concentration limits deserve more weight than a single trailing year. Neither horizon guarantees that the historical leader will lead next.
Taxes can make an apparently simple switch expensive
In a taxable brokerage account, selling an appreciated SMH position can realize a capital gain. The tax bill depends on your cost basis, holding period, filing situation and applicable jurisdiction. Estimate the gain and potential tax before comparing the expected benefit of SOXX with the cost of leaving SMH.
Ways to reduce unnecessary tax friction
- Direct new money first. Future contributions can go to the fund or broader asset class you want without selling the existing position immediately.
- Rebalance selectively. If the position is oversized, sell only enough to return to your target allocation rather than replacing the entire holding.
- Use loss positions where appropriate. A tax-loss sale may offset gains, but wash-sale rules and your tax circumstances require professional advice.
- Separate account types. The tax effect of a trade depends on whether the position is in a taxable account or a tax-advantaged account; verify the rules that apply to your account.
Taxes should not turn into an excuse to keep an unsuitable investment forever, but they are a real switching cost. Compare after-tax outcomes, not just the two headline return percentages.
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A practical SOXX-versus-SMH checklist
- Write down the purpose and target percentage of your semiconductor allocation.
- Download same-date holdings for both ETFs from the iShares and VanEck sponsor pages.
- Compare the top ten weights, current NVIDIA and Taiwan Semiconductor Manufacturing exposure, total holdings and business mix.
- Read the NYSE Semiconductor Index and MVIS US Listed Semiconductor 25 Index methodology documents, including rebalance and weighting rules.
- Record each fund’s current expense ratio, assets and typical trading spread.
- Calculate your unrealized gain, tax basis and estimated tax if you would sell.
- Consider directing new contributions or making a partial rebalance before a full sale.
- Set a review date and evaluate the portfolio using the same measures rather than chasing whichever fund recently led.
Risks that the return table does not remove
- Sector concentration: Both funds focus on semiconductors, so a semiconductor downturn can affect them together.
- Single-stock exposure: SMH’s 17.54% NVIDIA weight in the June 30, 2026 filing illustrates how one company can influence results.
- Valuation and earnings risk: Strong past returns can raise expectations, leaving prices sensitive to guidance and demand changes.
- Index drift: Market prices change weights between rebalances, so a fund’s risk profile can move even without a formal rule change.
- Timing risk: Buying after a large run or selling after a lagging period can lock in the wrong part of the cycle.
- Tax and transaction costs: Commissions, spreads and realized gains reduce the result an individual investor actually keeps.
How to interpret the headline
SOXX is the BlackRock fund that beat SMH by 22.43 percentage points over the one-year period cited on October 6, 2026. That lead was accompanied by smaller advantages for the one-month and year-to-date periods. It does not erase SMH’s much stronger five- and ten-year results, nor does it establish that either fund will outperform in the next period.
The useful conclusion is conditional: choose the ETF whose current index construction, concentration, cost, liquidity and tax consequences fit your plan. If SMH’s exposure is too concentrated or its benchmark no longer matches your objective, SOXX may be a reasonable alternative. If your only reason to sell is the latest one-year leaderboard, keeping the existing position and directing new money elsewhere may avoid an unnecessary taxable event while you make a fuller comparison.
Performance figures are attributed to 24/7 Wall St.’s October 6, 2026 report. SMH concentration figures come from its June 30, 2026 holdings filing. Returns are historical and do not predict future results.
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