Semiconductor ETFs Australia: SEMI vs SMHG vs SMH vs SOXX
Semiconductor ETFs Australia compared: ASX-listed SEMI and SMHG vs US-listed SMH and SOXX — fees, caps, Korean memory exposure, W-8BEN and US estate tax.
Quick answer: For most Australians, an ASX-listed fund is simpler than buying SMH or SOXX in the US. SEMI (Global X, 0.45% p.a.) is the large, established option, and SMHG (VanEck, 0.35% p.a.) is cheaper but only listed in August 2026 and is still very small. Both hold Korean memory makers SK Hynix and Samsung, which the US-listed SMH and SOXX can't hold. The US funds are slightly cheaper, but you then deal with a W-8BEN form, currency conversion and possible US estate tax.
Searches for "smh etf" and "soxx etf" have climbed sharply in Australia over the past year, largely on the back of AI chip demand. Most of what ranks for those terms is written for American investors, and the question Australians actually ask — what is the SMH ETF equivalent in Australia? — rarely gets a direct answer. This comparison looks at the same funds from an Australian's point of view, including the two ASX-listed alternatives that most US-focused pages don't mention.
The four semiconductor ETFs side by side
| SEMI | SMHG | SMH | SOXX | |
|---|---|---|---|---|
| Issuer | Global X | VanEck | VanEck | iShares (BlackRock) |
| Listed on | ASX | ASX | US exchange | US exchange |
| Management fee | 0.45% p.a. | 0.35% p.a. | 0.35% p.a. | 0.33% p.a. |
| Index | Solactive Global Semiconductor 30 | MarketVector Global Semiconductor (AUD) | MVIS US Listed Semiconductor 25 | NYSE Semiconductor Index |
| Number of holdings | 30 | 37 | 25 | 30 |
| Single-stock limit | 10% at each rebalance | Not stated (largest holding 7.9%) | 20% | 8% for top five, 4% for the rest |
| Can hold Korean-listed chipmakers? | Yes | Yes | No | No |
| Fund size | Over A$1 billion (8 Oct 2026) | A$4.6 million (Sept 2026) | US$77.2 billion (30 Jun 2026) | US$45.9 billion (9 Oct 2026) |
| Distributions | Twice a year | Once a year | Once a year | Quarterly |
| Trades in | AUD | AUD | USD | USD |
Sources: Global X SEMI fund page, VanEck SMHG fact sheet (Sept 2026), VanEck US ETF guide, Aug 2026, MarketVector index page, iShares SOXX fund page, SOXX summary prospectus. SMH distribution timing from VanEck's 2025 distribution schedule.
The fee gap is small. On a $20,000 holding, the difference between SEMI at 0.45% and SMHG at 0.35% is $20 a year. That is less than one brokerage trade at some brokers, and smaller than the currency conversion cost of buying SMH or SOXX at most Australian brokers. For a US-listed fund, the FX spread often matters more than the fee itself.
Where the money actually goes: index rules matter more than the fee
All four funds are "semiconductor ETFs", but their index rules produce noticeably different portfolios.
SMH lets one company dominate. The MVIS US Listed Semiconductor 25 Index caps each company at 20% and holds only 25 stocks. In practice, that means the largest chip designer can be up to a fifth of the fund. If you want maximum exposure to the AI chip leaders, that is a feature. If you already own the same company through VGS, IVV or NDQ, it is doubling up.
SOXX spreads the weight more evenly. Its index caps every holding at 8%, then caps everything outside the top five at 4%. It also limits all foreign companies trading as US depositary receipts (ADRs) to a combined 10%. That rule matters: TSMC and ASML, two of the most important companies in the industry, trade in the US as ADRs, so SOXX can hold only a small slice of them.
SEMI is global and caps at 10%. The Solactive Global Semiconductor 30 Index picks the 30 largest semiconductor companies by free-float market cap across developed markets plus South Korea and Taiwan. It caps each at 10% when it rebalances in February, May, August and November. Between rebalances, winners can drift above the cap. On 9 October 2026, NVIDIA was 11.63% of SEMI.
SMHG is the broadest. It held 37 companies in September 2026, with the largest at 7.9%. The country split was 59.22% US, 13.70% Taiwan, 10.69% South Korea, 7.96% Japan and 5.77% Netherlands.
Why Korean exposure matters right now
SMH and SOXX only hold US-listed companies. SK Hynix and Samsung Electronics are listed in Seoul, so neither US fund can own them. Both ASX funds can:
- SEMI: SK Hynix was 6.63% of the fund on 9 October 2026, alongside Micron at 10.63%.
- SMHG: Samsung Electronics is in its top 10 holdings.
This is directly relevant to the memory-chip boom behind the breakout searches for "dram etf" (covered below). If memory makers are the part of the chip cycle you want, the ASX funds give you more of it than either US fund.
ASX-listed vs US-listed: the Australian admin
The fee table makes SMH and SOXX look cheapest. For an Australian investor, the bigger differences sit outside the fee.
| Issue | SEMI / SMHG (ASX) | SMH / SOXX (US) |
|---|---|---|
| Broker | Any Australian broker, CHESS or custodial | Needs a broker with US market access |
| Currency | Buy and sell in AUD (the underlying shares are still unhedged foreign assets) | Convert AUD to USD to buy, and back to sell; FX spread on each conversion |
| W-8BEN form | Not needed | Needed to cut US dividend withholding from 30% to 15% |
| US estate tax | Not exposed (you own units in an Australian trust) | US-situs asset: estates holding more than US$60,000 of US assets must file a US estate tax return |
| Tax paperwork | Annual tax statement from the issuer | You gross up dividends and claim a foreign income tax offset yourself |
W-8BEN and dividend withholding
The Australia–US tax treaty limits US tax on dividends paid to Australian residents to 15%. To get that rate, you lodge a Form W-8BEN with your broker; without it, the default 30% applies. In your Australian return, you include the gross dividend and can usually claim the US tax withheld as a foreign income tax offset. Semiconductor ETFs pay very little income (SMHG's portfolio yield was 0.57% in September 2026), so the withholding amount itself is small. The paperwork is the bigger cost.
US estate tax: the risk most people miss
If an Australian dies holding US-listed shares or ETFs, the IRS treats US marketable securities as part of a US-situated estate. Once those US assets exceed US$60,000, the executor must file Form 706-NA. A semiconductor position that has doubled in a strong year can pass that threshold faster than people expect. ASX-listed SEMI and SMHG avoid this, because you own units in an Australian trust, not US shares. Our guide on how to invest in US shares from Australia covers this in more detail.
Capital gains are taxed in Australia under normal CGT rules in either case. Under the current rules, units held more than 12 months get the 50% discount. From 1 July 2027, that discount is replaced by cost-base indexation with a 30% minimum tax rate for individuals, under the Treasury Laws Amendment (Tax Reform No. 1) Act 2026; gains made before then keep the old treatment. Our guide to the 2027 CGT changes explains the split. Use the Capital Gains Tax Calculator to see what selling a chip ETF after a big run-up would cost you.
Which one suits which investor
Choose SEMI if you want an established ASX fund with real size. At over A$1 billion, it has the scale and trading history of a fund that has been listed since August 2021. It is the most direct way to get global chip exposure, including Korean memory makers, without leaving the ASX.
Choose SMHG if you want the lowest ASX fee and the broadest spread (37 holdings, largest under 8%). Keep in mind that it listed on 6 August 2026 and held just A$4.6 million in September 2026. Small new ETFs can have wider bid–ask spreads, so check the spread before placing a large order. Also use a limit order rather than a market order.
Choose SMH if you already have a US brokerage account and W-8BEN on file, want the most concentrated bet on the largest US-listed chip companies, and your total US-listed holdings are well below the estate tax threshold.
Choose SOXX if you want US-listed exposure but prefer a more evenly spread portfolio than SMH, and you're comfortable with very little TSMC and ASML exposure.
Skip all four if you already hold a large position in NDQ, IVV or VGS and haven't checked how much of it is already in the same chip companies. Adding a sector ETF on top of a tech-heavy core portfolio increases concentration more than most people intend. Our guide to how many ETFs you should hold explains how to check overlap.
How volatile is this sector?
The index SMHG tracks shows the swings. To the end of September 2026, it returned 112.92% over one year but fell 9.68% over the previous three months. Returns before SMHG's July 2026 index launch are simulated, but the pattern is typical of the sector. Chip stocks follow a boom-and-bust inventory cycle, so a strong year is often followed by a sharp fall. Most investors who use a sector ETF keep it as a small "satellite" alongside a diversified core.
Use our ETF Calculator to see how a small satellite position compares with your core portfolio over 10–20 years, with fees included.
What about the DRAM ETF?
"dram etf" was a breakout search in Australia this year. It refers to the Roundhill Memory ETF (DRAM), which started trading on the US Cboe BZX exchange on 2 April 2026. It is actively managed, holds memory chipmakers such as Micron, Samsung, SK Hynix, SanDisk and Kioxia, and has a gross expense ratio of 0.65%. According to etf.com, it became one of the fastest-growing ETF launches on record.
For Australians, DRAM carries every US-listed drawback above (W-8BEN, FX, estate tax) plus a higher fee and a much narrower portfolio. If memory chips are the theme you want, SEMI already has Micron (10.63%) and SK Hynix (6.63%) as two of its larger holdings, inside a 30-stock portfolio on the ASX.
Frequently asked questions
What is the SMH ETF equivalent in Australia?
There is no ASX-listed version of SMH itself. The closest ASX alternatives are VanEck SMHG (0.35% p.a.), from the same issuer as SMH but tracking a global index of 37 companies, and Global X SEMI (0.45% p.a.), the larger and longer-established fund with 30 holdings. Unlike SMH, both can hold Korean-listed chipmakers such as SK Hynix and Samsung.
Can I buy SMH or SOXX on the ASX?
No. SMH and SOXX are US-listed and need a broker with US market access. The closest ASX-listed alternatives are Global X SEMI (0.45% p.a.) and VanEck SMHG (0.35% p.a.). SMHG is VanEck's ASX semiconductor fund but tracks a different, global index from SMH.
Is SMHG the same as SMH?
No. SMH tracks 25 US-listed semiconductor companies with up to 20% in any single company. SMHG tracks the MarketVector Global Semiconductor (AUD) Index, held 37 companies in September 2026 and includes Korean-listed Samsung, which SMH cannot hold.
Which semiconductor ETF has the lowest fee in Australia?
On the ASX, SMHG has the lowest management fee at 0.35% p.a., compared with SEMI at 0.45% p.a. US-listed SOXX is 0.33% p.a., but currency conversion costs on an Australian broker usually outweigh that difference.
Do I need a W-8BEN for a semiconductor ETF?
Only for US-listed funds like SMH, SOXX or DRAM. The W-8BEN reduces US withholding on dividends from 30% to the 15% treaty rate. ASX-listed SEMI and SMHG don't need one.
Do semiconductor ETFs pay dividends?
Yes, but very little. Chip companies reinvest most of their profits, so yields are low. SMHG's portfolio yield was 0.57% in September 2026. SEMI pays twice a year, SMHG and SMH once a year, and SOXX quarterly.
Is a semiconductor ETF a good core investment?
Most investors treat it as a small satellite holding rather than a core holding. It is a single sector with large swings, and broad ETFs like VGS, IVV and NDQ already hold the biggest chip companies.
Related calculators and guides
- ETF Calculator: project growth of a satellite ETF position with fees
- Capital Gains Tax Calculator: estimate CGT when you sell after a run-up
- How to invest in US shares from Australia: W-8BEN, FX and estate tax in more depth
- IVV vs VGS vs VTS: broad US and global options you may already hold
- Best ETF brokers in Australia: compare brokers with US market access and FX costs
- How to read your ETF tax statement
This article is for general information only and does not constitute financial, tax or legal advice. Individual circumstances vary. Consult a registered tax agent or licensed financial adviser before making decisions based on this information.
Written by
Mahi PatilSoftware engineer & personal finance enthusiast · Melbourne, Australia
Built Dolaro.com.au to create accurate, free Australian finance tools. Invests in Australian and global ETFs and writes about the topics researched firsthand. More about Mahi →