4 min read
By Ron Koren, ETF Insider


Exchange-Traded Funds (ETFs) have become a cornerstone of modern investing, offering a diverse range of investment opportunities across different sectors and asset classes. In this article, we will undertake a thorough comparison of two popular ETFs: XLK (Technology Select Sector SPDR Fund) and SMH (VanEck Vectors Semiconductor ETF). We'll delve into various aspects, including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

XLK Vs SMH: Overview

The XLK and SMH ETFs represent distinct segments of the technology industry. XLK focuses on technology companies across various sub-sectors such as software, hardware, and IT services. On the other hand, SMH concentrates specifically on semiconductor manufacturers and suppliers. Understanding this fundamental difference is essential for investors seeking exposure to the tech sector.

XLK Vs SMH: Sectors and Top Holdings

XLK's portfolio encompasses a broad spectrum of technology-related industries, including giants like Apple, Microsoft, and Visa. In contrast, SMH hones in on semiconductor firms like NVIDIA, Intel, and Taiwan Semiconductor Manufacturing Company (TSMC). Recognizing these sectors and key holdings is crucial for investors as they evaluate the potential growth and volatility of these ETFs.

XLK  overlap XLK VS SMHXLK overlap XLK VS SMH

XLK Vs SMH: Capitalization and Strategy

The XLK ETF boasts substantial assets under management, indicative of its popularity among investors who seek comprehensive exposure to the tech sector. SMH, with its specialized focus on semiconductors, offers a unique way to tap into the growth potential of this crucial industry. Investors must consider the differing capitalization and strategies of these ETFs to align with their investment goals and risk appetite.

XLK Vs SMH: Tracking and Exposure

XLK provides investors with exposure to a wide array of technology stocks, aiming to mirror the performance of the Technology Select Sector Index. SMH, on the other hand, zeroes in on semiconductors, replicating the MVIS US Listed Semiconductor 25 Index. The tracking mechanisms diverge, and understanding these nuances assists investors in making informed decisions based on their sector preferences and investment strategies.


In the world of ETFs, XLK and SMH stand out as powerful tools for investors looking to capitalize on the opportunities presented by the technology sector. Each ETF offers a unique perspective on this ever-evolving industry. For those interested in exploring deeper insights into holdings, correlations, overlaps, and other critical details, ETF Insider emerges as the ultimate tool. This user-friendly app provides an invaluable resource for gaining comprehensive insights into a wide range of financial instruments.

Disclaimer: This article is intended for informational purposes only and does not provide investment advisory services. Investing in ETFs involves risks, and individuals should conduct thorough research and consider seeking advice from financial professionals before making investment decisions.

XLK Fund Overview. State Street Global Advisors. [Link]
SMH Fund Summary. VanEck. [Link]
XLK Holdings. Technology Select Sector Index. [Link]
SMH Holdings. MVIS US Listed Semiconductor 25 Index. [Link]

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  • Why is XLK better than SMH?

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

  • Does SMH beat XLK?

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

  • Should I invest in XLK or SMH?

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

  • Are XLK and SMH good investments?

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

  • What is the correlation between XLK and SMH?

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