{
  "id": 3501274,
  "title": "Prediction: SOXX Will Continue to Outperform SMH. Here's Why.",
  "url": "https://urgent.news/2026/08/26/prediction-soxx-will-continue-to-outperform-smh-heres-why",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-26T11:54:00.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/prediction-soxx-continue-outperform-smh-115400498.html"
  },
  "original_language": "en",
  "account": "The iShares Semiconductor ETF (SOXX) and VanEck Semiconductor ETF (SMH) share similarities, as both track the semiconductor industry and are passively managed. However, SOXX has outperformed SMH significantly year-to-date, with a difference of 16.54 percentage points. This gap is noteworthy and suggests that SOXX may continue to outperform SMH. The reason for this performance lies in the way each fund allocates its investments. SOXX spreads its money across a more balanced set of holdings, with no single stock representing more than about 9% of the fund. In contrast, SMH has a more concentrated portfolio, with its top two stocks accounting for over 30% of its holdings. This concentration creates a higher risk, as the performance of just a couple of dominant positions can significantly impact the fund's overall value. A real-world example of this risk is the First Trust Nasdaq Semiconductor ETF (FTXL), which lost 5% of its value in just five trading days due to weakness in its top holdings. SOXX's more evenly distributed risk profile makes it better positioned to benefit from multiple winners in the semiconductor industry, potentially leading to continued outperformance against SMH.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}