🤝 BFF Take
SMH Is the Diversified Default. DRAM Is the High-Conviction Memory Thesis.
DRAM (Roundhill Memory ETF) and SMH (VanEck Semiconductor ETF) both give semiconductor exposure, but from very different angles. DRAM focuses exclusively on companies that make DRAM and NAND flash memory: Micron Technology, SK Hynix, Samsung Electronics, Western Digital/SanDisk. The thesis is specific: AI infrastructure requires massive quantities of High Bandwidth Memory (HBM) for data center GPUs, and memory companies are the direct beneficiaries. SMH takes a broader view of the semiconductor value chain: it includes Nvidia (chip design), TSMC (manufacturing), ASML (lithography equipment), Broadcom (networking chips), AMD, Qualcomm, and others alongside its memory exposure. SMH charges 0.35% vs DRAM's 0.75%. SMH is the larger, more liquid fund with a longer track record. DRAM is a concentrated bet on the memory cycle that eliminates the chip design and manufacturing equipment diversification SMH provides. Both are high-risk sector funds. DRAM is the more concentrated and specific of the two.
📋 Quick Takeaways
🧠DRAM owns only memory companies: Micron, SK Hynix, Samsung, SanDisk/WD. SMH also owns Nvidia, TSMC, ASML, AMD, Broadcom: the full chip supply chain.
💰DRAM charges 0.75%. SMH charges 0.35%. On $10,000, that's $75/year vs $35/year. DRAM costs more than twice as much for a narrower bet.
📈Memory chips are more cyclical than semiconductors broadly. DRAM can outperform sharply in memory upcycles (AI HBM demand) and underperform badly when supply overwhelms demand.
📊 Data-Based Take: SMH has the lower fee
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
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Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
DRAM
Roundhill Memory ETF
SMH
VanEck Semiconductor ETF
📋 DRAM vs SMH — Key Facts Side by Side
| Metric |
DRAM |
SMH |
| Fund Name |
Roundhill Memory ETF |
VanEck Semiconductor ETF |
| Issuer |
Roundhill |
VanEck |
| Tracks Index |
Solactive Memory Chip Index |
MVIS US Listed Semiconductor 25 Index |
| Expense Ratio |
0.75% |
0.35% ✓ |
| Cost per $10K/yr |
$75.00 |
$35.00 |
| AUM |
$13.4B |
$18B |
| Holdings |
25 |
26 |
| Inception |
2024 |
2000 |
| 1-Year Return |
+92.00% |
+35.00% |
| 3-Year Return |
— |
+14.00% |
| 5-Year Return |
— |
+28.00% |
| Avg Bid-Ask Spread |
0.06% |
0.01% |
Data from ETF BFF database. Returns are annualised. Not investment advice.
📊 DRAM vs SMH — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy DRAM or SMH?
Choose if...
DRAM
- You already use Roundhill and prefer staying within their fund family
Choose if...
SMH
- You want the lowest fees — saves ~$40/yr per $10K vs DRAM
- You already use VanEck and prefer staying within their fund family
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❓ DRAM vs SMH — Frequently Asked Questions
What does the DRAM ETF actually hold?
DRAM (Roundhill Memory ETF) holds companies that design or manufacture DRAM (Dynamic Random Access Memory) and NAND flash memory. Core holdings include Micron Technology (MU), SK Hynix (Korean memory giant), Samsung Electronics (Korea), and Western Digital/SanDisk. The fund's thesis centers on the explosive demand for High Bandwidth Memory (HBM), a specialized form of DRAM stacked in the packaging of Nvidia's H100 and H200 data center GPUs. As AI training clusters scale, HBM demand scales with them.
Does SMH include memory chip companies?
Yes. SMH includes Micron Technology and has exposure to Samsung and SK Hynix through its global holdings. But memory is a minority of SMH's total portfolio. The fund is dominated by chip designers (Nvidia, AMD, Broadcom, Qualcomm) and manufacturing infrastructure (TSMC, ASML). DRAM is entirely memory. SMH's memory exposure is diversified across a much larger semiconductor universe.
Why has DRAM had such high search interest recently?
The memory semiconductor market entered a strong upcycle driven by AI infrastructure spending. Building large-scale AI training clusters requires massive amounts of HBM, and only a few companies in the world manufacture it (primarily SK Hynix, Micron, and Samsung). Investors searching for direct exposure to this theme found DRAM as the most targeted vehicle. The fund is new enough that many investors are discovering it for the first time.
Is DRAM too risky to own?
DRAM is a concentrated, thematic, single-cycle bet on memory semiconductors. Memory is one of the most cyclical sub-sectors in an already cyclical industry. When memory prices collapse from oversupply (as they did in 2022-2023), memory stocks fall dramatically. When AI drives HBM demand and supply is tight, they surge. DRAM should be understood as a high-conviction sector bet rather than a core holding. Past performance does not guarantee future results.
New to ETF investing? See answers to the most common ETF questions →
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.