SOXX vs SMH: the 10-year comparison
SMH led on ten-year cumulative return. Separate KRW 100 million investments ended about KRW 358.0 million apart. SMH also had the higher CAGR. SMH also had a smaller MDD and lower volatility. But SOXX led over the latest year, so the ranking changed with the investment period.
- Identical period
- ~
- Investment
- KRW 100,000,000 in each · No further contributions
- Currency and dividends
- KRW · USD/KRW included · All dividends reinvested
The cutoff is September 8, 2026, when both price and FX data are available. All results are in KRW and include exchange-rate movements.
| Metric | SOXX | SMH |
|---|---|---|
| Cumulative total return (dividends included) | +1,880.80% | +2,238.78% |
| CAGR | +34.80% | +37.06% |
| MDD | −37.34% | −34.24% |
| Annualized volatility | 34.88% | 33.59% |
CAGR is an annual equivalent; actual yearly returns varied.
What did KRW 100 million become?
| Metric | SOXX | SMH |
|---|---|---|
| Final portfolio value | ₩1,980,795,368 | ₩2,338,783,063 |
Select a date to see the KRW portfolio value and cumulative return.
The vertical axis shows portfolio value in KRW. Use Left and Right Arrow or Home and End to explore returns by date. Use the wheel to zoom and drag to move through time.
| Date | Fund | Cumulative return |
|---|---|---|
| SOXX | 0.00% | |
| SMH | 0.00% | |
| SOXX | +1880.80% | |
| SMH | +2238.78% |
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How far did they fall at the worst point?
| Metric | SOXX | SMH |
|---|---|---|
| Peak date | 2024-07-10 | 2022-01-03 |
| Trough date | 2025-04-08 | 2022-10-14 |
| Recovery date | 2025-09-18 | 2023-05-25 |
| Peak to recovery (calendar days) | 435 | 507 |
MDD is the largest percentage loss from a previous peak. Recovery time runs from that peak to the date the portfolio regained its value, including weekends and holidays.
SOXX fell further but regained its peak sooner than SMH. Each fund’s worst drawdown can occur in a different window, so loss depth and recovery time need to be read together.
Did a higher return come with higher risk?
Volatility measures how much daily returns fluctuate.
SMH’s higher ten-year return came with a smaller MDD and lower volatility, rather than larger losses.
How did they compare during selloffs?
A long-term return can hide losses during the holding period. The first half of 2020 and the 2022 selloff show how far each fund fell and how long it took to regain its peak.
COVID-19 selloff
~
| Metric | SOXX | SMH |
|---|---|---|
| Window return | 10.38% | 9.71% |
| Window MDD | -31.89% | -30.96% |
| Window peak | 2020-02-19 | 2020-02-19 |
| Window trough | 2020-03-16 | 2020-03-16 |
| Recovery of that peak | 2020-06-03 | 2020-06-04 |
| Peak to recovery (calendar days) | 105 | 106 |
Both funds finished this window with a gain, but suffered large declines along the way. A positive ending return does not mean the holding period was free of losses.
2022 semiconductor / growth selloff
~
| Metric | SOXX | SMH |
|---|---|---|
| Window return | -32.47% | -30.99% |
| Window MDD | -34.70% | -34.24% |
| Window peak | 2022-01-03 | 2022-01-03 |
| Window trough | 2022-10-14 | 2022-10-14 |
| Recovery of that peak | 2023-06-14 | 2023-05-25 |
| Peak to recovery (calendar days) | 527 | 507 |
Recovery is checked through the cutoff using each window’s peak, which can differ from the peak selected for the full ten years.
How do their semiconductor holdings differ?
SOXX tracks the NYSE Semiconductor Index; SMH tracks the MVIS US Listed Semiconductor 25 Index. Stock counts and weight limits differ, changing each fund’s exposure to the same company.
| Rule | SOXX | SMH |
|---|---|---|
| Index stocks | 30 | 25 |
| Weighting | Modified float-adjusted market cap | Modified float-adjusted market cap |
| Rebalance limits | Top five: 8% each; others: 4%; ADRs combined: 10% | Large-weights group: 50% combined, 20% individual maximum; small-weights: 4.5% maximum |
Limits apply at rebalancing; weights can drift afterward. See the iShares SAI and MarketVector guide for the rules.
| Concentration | SOXX | SMH |
|---|---|---|
| NVIDIA | 7.36% | 19.30% |
| Top ten equities combined | 60.88% | 67.31% |
The SOXX holdings file and SMH holdings show greater NVIDIA and top-ten concentration in SMH, giving those companies more influence on its returns.
The SOXX prospectus documents its June 21, 2021 switch from PHLX to ICE, now NYSE Semiconductor Index. These holdings postdate the backtest and do not represent the whole decade. NVIDIA’s historical contribution requires historical weights.
Does the result persist across investment periods?
Every window ends on September 8, 2026, with a different starting date. This tests whether the ten-year ranking also held over shorter periods.
| Period | SOXX | SMH |
|---|---|---|
| 1 year
2025-09-08 ~ 2026-09-08 |
+106.54% | +87.89% |
| 3 years
2023-09-08 ~ 2026-09-08 |
+229.70% | +289.34% |
| 5 years
2021-09-08 ~ 2026-09-08 |
+309.93% | +405.64% |
| 10 years
2016-09-08 ~ 2026-09-08 |
+1,880.80% | +2,238.78% |
| Maximum history
2011-12-20 ~ 2026-09-08 |
+4,312.67% | +5,095.29% |
SMH led over ten years, but SOXX led over the latest year. The starting date changed the relative performance, so the ten-year lead cannot be extended to every investment period.
These are trailing returns with a fixed ending date, not rolling returns with both dates moving.
Comparison basis
Each portfolio starts with KRW 100 million invested as a lump sum, with dividends reinvested. Taxes, trading commissions and FX spreads are excluded, so actual investment results can differ. See the backtest methodology for purchase-date, dividend and FX rules.
Dividend, FX and risk assumptions
The model uses split-adjusted closing prices and fractional shares; fund expenses are treated as reflected in market prices. Verified payment dates were unavailable, so dividends become cash on the ex-date and are reinvested the next trading day. Actual payment-date reinvestment can differ. Holidays use the previous FX rate, and stress windows use their first and last available sessions. MDD uses closing values; intraday losses can be larger. Volatility is the sample standard deviation of daily returns × √252, rounded to two decimals.
What the SOXX vs SMH backtest tells us
SMH had the higher ten-year cumulative return. CAGR was higher too. SMH also had a smaller MDD and lower volatility. But SOXX led over the latest year, ruling out a universal winner.
The holdings snapshot shows greater NVIDIA and top-stock concentration in SMH. Returns and drawdowns need to be considered alongside that concentration and the period you intend to invest.
I believe we should invest to connect our money with business growth. Before choosing a semiconductor ETF, study its largest holdings and backtest several periods. Examine returns, drawdowns and recovery together to decide how much of this industry belongs in your plan.
FAQ
What changes if I take dividends in cash?
Keeping or spending dividends reduces additional share purchases and can change the ending value. The calculator lets you change the dividend setting.
Does a −30% MDD mean my initial KRW 100 million fell to KRW 70 million?
It means the portfolio fell 30% from its previous peak. For example, a rise to KRW 200 million followed by a fall to KRW 140 million is also a −30% drawdown. This is an illustration, not an observed value for either fund.
Does the return change if I invest less than KRW 100 million?
With the same dates, currency and dividend setting, the percentage return is the same in this calculation. It allows fractional shares and excludes taxes and trading costs. Actual purchases can differ because of share increments and costs.
Why do these returns differ from the fund website?
USD returns published by a fund do not include the USD/KRW effect in these KRW results. Check the dates, market-price versus net asset value (NAV) basis, and dividend reinvestment timing as well.
Compare your own dates and currency
Change the investment amount, dates, reinvestment policy and USD/KRW setting.
Open the backtest calculatorThis article combines the author’s investment opinion with a pretax historical simulation. Returns and losses depend on the asset and period. Calculation basis