A cheaper semiconductor ETF outperforms SMH by 22 points in 2026 due to broader chip exposure.

In 2026, the Xtrackers Semiconductor Select Equity ETF (CHPS) has outperformed the popular VanEck Semiconductor ETF (SMH) by 22 percentage points, returning 81.52% versus 59.47%. This is largely due to CHPS's broader portfolio with less concentration in NVIDIA and more exposure to memory and international chip equipment companies, sectors that led the market this year. CHPS also charges a lower fee of 0.15% compared to SMH's 0.35%. However, SMH remains larger and more liquid, favoring investors focused on mega-cap AI chip stocks like NVIDIA and Taiwan Semiconductor. The choice depends on investor preference for concentration, liquidity, and chip sector exposure.