IHAK VS SMH
3 min read
By Ron Koren, ETF Insider

IHAK VS SMH

Exchange-Traded Funds (ETFs) have transformed the landscape of investment, providing investors with diversified exposure across a wide range of sectors and asset classes. In this article, we will conduct an in-depth comparison between two prominent ETFs: IHAK (iShares Cybersecurity and Tech ETF) and SMH (VanEck Vectors Semiconductor ETF). We'll explore various facets including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking methods, and exposure.

IHAK Vs SMH: Overview

IHAK and SMH are two ETFs that offer distinct strategies within the technology sector. While IHAK focuses on cybersecurity and broader technology companies, SMH concentrates on the semiconductor industry. This disparity in focus results in different market exposures and associated risks, which we will delve into in the following sections.

IHAK Vs SMH: Sectors and Top Holdings

The IHAK ETF centers its holdings on cybersecurity and tech companies, with top holdings like Cisco, Palo Alto Networks, and Crowdstrike. In contrast, SMH invests in semiconductor-related firms such as NVIDIA, Taiwan Semiconductor, and ASML Holdings. Examining these sectors and top holdings can aid investors in selecting the ETF that aligns with their investment objectives and risk tolerance.

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IHAK Vs SMH: Capitalization and Strategy

IHAK boasts a considerable asset under management (AUM), indicating its popularity among investors interested in cybersecurity and technology sectors. SMH's strategy revolves around capitalizing on the performance of semiconductor companies. The varying capitalization and strategies of these two ETFs offer different potential for returns and risks, necessitating careful consideration by investors.

IHAK Vs SMH: Tracking and Exposure

The IHAK ETF seeks to provide investors exposure to the cybersecurity and technology sectors, reflecting their daily price movements. In contrast, SMH offers exposure to the semiconductor industry. The tracking methodologies differ: IHAK tracks an index of cybersecurity and tech companies, while SMH follows a semiconductor index. Understanding these tracking and exposure approaches aids investors in choosing the ETF that aligns with their investment goals.

Conclusion

IHAK and SMH are distinctive ETFs, each offering specialized approaches to investing in the technology sector. For those interested in gaining deeper insights into holdings, correlations, overlaps, and other intricate details, ETF Insider serves as an invaluable tool. With its user-friendly application, it provides extensive information about these ETFs and other financial instruments.

Disclaimer: This article does not offer any investment advisory services.

Sources:

https://finance.yahoo.com/SMH ETF issuer
https://finance.yahoo.com/quote/SMH/ SMH ETF official page

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FAQ

  • Why is IHAK better than SMH?

    IHAK may be considered better than SMH for some investors due to its specific focus, offering diversification.

  • Does SMH beat IHAK?

    SMH's performance relative to IHAK will vary over time, depending on market conditions.

  • Should I invest in IHAK or SMH?

    The choice between IHAK and SMH should align with your investment goals, risk tolerance, and desired exposure.

  • Are IHAK and SMH good investments?

    Both IHAK and SMH can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between IHAK and SMH?

    The correlation between IHAK and SMH can vary over time, reflecting differences in performance.