Semiconductors sit at the core of AI, data centers, EVs, cloud computing, and defense technologies. As we move toward 2026, semiconductor ETFs are increasingly viewed as strategic long-term growth assets. This guide compares the Top 10 US semiconductor ETFs using performance data, portfolio exposure, dividend yield, and a forward-looking industry outlook.
Semiconductor Industry Overview & 2026 Trends
The global semiconductor cycle is entering a new expansion phase driven by AI accelerators, advanced packaging, memory recovery, and US reshoring policies. Major chipmakers are increasing capital expenditure through 2026, supported by the CHIPS Act and defense spending.
- AI-related semiconductor demand expected to grow at double-digit CAGR through 2026
- Memory (DRAM/NAND) cycle bottomed in 2024, recovery accelerating in 2025–2026
- Geopolitical risks increase the value of US-based semiconductor exposure
Summary: Semiconductor ETFs benefit from secular AI growth, but volatility remains higher than broad market ETFs.
Top 10 US Semiconductor ETFs – Performance & Structure Comparison
The table below compares leading semiconductor ETFs based on size, diversification, recent performance, and income characteristics.
| ETF | Focus | AUM | Dividend Yield | 3M | 6M | 9M | 12M |
|---|---|---|---|---|---|---|---|
| SOXX | Large-cap US semiconductors | $10B+ | ~1.1% | +6% | +14% | +22% | +38% |
| SMH | Market-cap weighted leaders | $13B+ | ~0.8% | +7% | +15% | +24% | +40% |
| XSD | Equal-weight semiconductors | $2B+ | ~0.9% | +5% | +12% | +20% | +34% |
| SOXQ | Nasdaq semiconductor exposure | $2B+ | ~0.7% | +6% | +13% | +21% | +36% |
| PSI | Dynamic semiconductor index | $1.5B+ | ~0.8% | +5% | +11% | +19% | +32% |
| USD | Ultra semiconductor exposure | $1B+ | ~0.6% | +9% | +20% | +32% | +55% |
| SSG | Inverse semiconductor ETF | $300M+ | 0% | - | - | - | - |
| SOXL | 3x leveraged semiconductors | $8B+ | ~0.5% | +18% | +45% | +70% | +120% |
| SOXS | 3x inverse leveraged | $2B+ | 0% | - | - | - | - |
| FSELX | Actively managed semiconductor fund | $20B+ | ~0.7% | +6% | +14% | +23% | +39% |
Summary: SMH and SOXX lead in stability, while SOXL offers extreme upside with significant risk.
Portfolio Exposure & Strategy Comparison
Most semiconductor ETFs concentrate heavily in NVIDIA, AMD, Broadcom, Intel, TSMC, and Qualcomm. Differences emerge in weighting methodology and risk profile.
| ETF Type | Portfolio Characteristics |
|---|---|
| Market-cap weighted | Dominated by NVIDIA and mega-cap AI leaders |
| Equal-weight | Greater exposure to mid-cap innovators |
| Leveraged | Amplified returns and drawdowns |
Summary: Equal-weight ETFs reduce single-stock risk, while leveraged ETFs magnify cycle timing.
2026 Semiconductor Industry Outlook & ETF Attractiveness
Looking ahead to 2026, semiconductor demand is expected to remain structurally strong, with AI and defense spending offsetting cyclical slowdowns.
| ETF | 2026 Outlook | Attractiveness Score (5) |
|---|---|---|
| SMH | Core AI and foundry exposure | 4.8 |
| SOXX | Balanced long-term semiconductor growth | 4.7 |
| XSD | Mid-cap innovation leverage | 4.4 |
| SOXQ | Stable Nasdaq semiconductor exposure | 4.5 |
| SOXL | High-risk, high-reward AI cycle play | 4.2 |
Summary: SMH and SOXX are best suited for long-term investors, while SOXL fits tactical traders.
Conclusion
Semiconductor ETFs remain one of the most compelling growth themes heading into 2026. Investors should align ETF selection with risk tolerance, time horizon, and volatility acceptance. A blend of core (SMH / SOXX) and tactical exposure may offer the optimal risk-adjusted strategy.
