# SMH ETF Outperforms First Trust Chip Fund

> VanEck SMH ETF beats First Trust FTXL chip fund in yearly returns despite longer-term lag.
- Title: SMH ETF Outperforms First Trust Chip Fund · 24/7 Wall St.
- Summary: VanEck SMH ETF beats First Trust FTXL chip fund in yearly returns despite longer-term lag. VanEck Semiconductor ETF (SMH) returned 44.09% over the past year…
- Keywords: smh, ftxl, nasdaq, semiconductor, etf, chip, vanec, first trust, Outperforms, First, Trust, Fund
- Source: 24/7 Wall St. — https://247wallst.com/investing/etf/2026/11/02/smh-returned-44-09-over-the-past-year-first-trusts-chip-fund-returned-67-35
- Author: Ryne Mauck
- Published: 2026-11-02T22:33:41+00:00
- Read time: 1 min
- Topics: smh, ftxl, nasdaq, semiconductor, etf, chip, vanec, first trust
## Short-Term Performance
VanEck Semiconductor ETF (SMH) returned 44.09% over the past year through October 30, 2026.
## First Trust Leads Short-Term
First Trust Nasdaq Semiconductor ETF (FTXL) returned 67.35% over the same period, a lead of 23.26 percentage points.
## Year-to-Date Comparison
FTXL is up 63.18% year to date against SMH's 45.08%, a lead of 18.1 percentage points.
## Five-Year Returns Favor SMH
SMH returned 293.58% over five years starting October 29, 2021, versus FTXL's 210.27%.
## Ten-Year Returns Favor SMH
SMH returned 1595.48% since November 1, 2016, versus FTXL's 1024.25%.
## Recent Volatility
Both funds dropped sharply: FTXL lost 16.52%, SMH lost 14.21% in the past month.
## Different Index Rules
SMH tracks largest liquid chip stocks; FTXL uses volatility, value, and growth scoring.
## Tax Implications
Taxable accounts trigger capital gains; tax-advantaged accounts avoid immediate tax.
## What to Watch Next
Index rebalances and chipmaker earnings will test FTXL's lead over SMH.
## Key takeaway

VanEck Semiconductor ETF (SMH) returned 44.09% over the past year versus First Trust Nasdaq Semiconductor ETF (FTXL)'s 67.35%.