SMH or SMGB semi-conductor ETF?

Hi all, I’m interested in adding a semi-conductor ETF to my portfolio, and my research led me to the VanEck SMH ETF as a good option, which I see is available to buy on here. I’ve just recently noticed that they also offer what seems to be an identical ETF called SMGB, also on here, but which is traded in pounds rather than the SMH’s dollars.

As someone investing from Britain I’d rather trade in pounds to avoid exchange rates and fees, all other things equal, but are they? Comparing the funds on Google Finance shows some disparity in their fortunes, and then there’s the question of liquidity, as I’d like to be able to sell shares in this volatile market at short notice.

Can anyone help?

Personally, I’d go for the sterling-denominated one to avoid the FX fee. At a glance, it looks relatively liquid. As an alternative, you could create a semi-conductor pie based on this index. That way, you cut out the ETF’s ongoing charge.

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Thanks. TBH, I’m not so bothered about the .35% fee, for the amount I’ll be putting in, at least in the short term, although trading in £ is obviously more appealing to me. I am still slightly perplexed by the difference in the ups and downs of the two ETFs if they hold the same assets with the same weighting. The $ traded SMH showed a 46.76% YTD increase, compared to 38.20% for the £ traded SMGB.

Perhaps the difference is due to the FX performance? :wink:

How is the GBP/USD YTD performance?