DRAM vs SMH vs SOXX: Which Semiconductor ETF Fits Your Thesis?
DRAM owns only memory chips. SMH owns the full semiconductor supply chain globally. SOXX owns U.S.-focused chip companies with diversified weighting. Three different bets on the same industry.
The Roundhill Memory ETF (ticker: DRAM) launched in 2024 and has surged in search interest as investors connect the AI hardware buildout to memory chip demand. Nvidia's data center GPUs require High Bandwidth Memory (HBM), and only Micron, SK Hynix, and Samsung make it at scale. DRAM is the only fund dedicated entirely to those companies. That specificity is the entire thesis.
DRAM vs SMH vs SOXX: Side-by-Side
| DRAM | SMH | SOXX | |
|---|---|---|---|
| Full name | Roundhill Memory ETF | VanEck Semiconductor ETF | iShares Semiconductor ETF |
| Expense ratio | 0.75% | 0.35% | 0.35% |
| AUM | $13.4B | $18B | $15B |
| Holdings | 25 stocks | 26 stocks | 30 stocks |
| Geography | Global (Korea, US, Taiwan) | Global (includes TSMC, ASML) | Primarily US |
| Includes | Micron, SK Hynix, Samsung, SanDisk/WD | Nvidia, TSMC, ASML, AMD, Broadcom, Micron | Nvidia, AMD, Broadcom, Qualcomm, Micron |
| Excludes | Chip designers (Nvidia, AMD), equipment (ASML) | Nothing major | TSMC, ASML, foreign chip makers |
| 1-year return | +92.0% | +35.0% | +32.4% |
| 3-year return | N/A (new fund) | +14.0% | +18.6% |
| Inception | 2024 | 2000 | 2001 |
| Memory focus | 100% memory | Partial (~15-20%) | Partial (~10-15%) |
*DRAM fund launched 2024: no 3-year return available. Returns approximate and subject to change. Past performance does not guarantee future results.
SMH is the default answer for semiconductor exposure. 26 holdings, 0.35%, 24-year track record, global coverage. If you believe in chips broadly, start here. SOXX is the U.S.-centric alternative at the same cost with slightly more even weighting. The choice between them is close. DRAM is a different decision: it is a concentrated, cycle-dependent bet on memory specifically. The AI HBM thesis is real and the 1-year returns reflect it. So does the 0.75% expense ratio and the thin AUM. DRAM belongs in a satellite position, not a core holding. If the memory cycle turns, DRAM will demonstrate that very clearly.
Who Each Fund Is Built For
Best for
- Investors with a specific AI HBM thesis
- Deliberate overweight to memory over logic chips
- Satellite position (5-10% of portfolio max)
- Short-to-medium time horizon on the memory cycle
Best for
- Default semiconductor sector exposure
- Global chip supply chain in one fund
- Long-term core semiconductor holding
- Investors who want TSMC and ASML included
Best for
- US-focused semiconductor exposure
- More even weighting (10% single-stock cap)
- Long-term core semiconductor holding
- Preference for domestic over global chip exposure