Sach336699 / Shutterstock.com Quick Read SMH crushed XSD over five years, returning 376% versus 197%, but XSD's equal-weight structure flipped the ranking in 2026, gaining 71% to SMH's 65%. SMH's edge includes direct exposure to TSM and ASML, foreign foundry and lithography names that XSD's U.S.-only mandate completely excludes. SMH lets winners compound by rebalancing less aggressively, while XSD systematically trims outperformers and adds to laggards, capping single-stock concentration.