In this paper, a comprehensive simulation study is conducted to investigate the switching characteristics, gain, and breakdown voltage of a GaN-AlN-(4H)SiC based optically-triggered (OT) heterostructure vertical power semiconductor device (PSD). It comprises a 1 nm AlN buffer layer between the GaN and SiC heterointerface to achieve a reasonable compromise between lattice mismatch and lower forward drop. The results are compared with an all-(4H)SiC OT PSD. The all-(4H)SiC homostructure PSD is based completely on SiC and has no buffer layer. Further, it has the same structure, dimensions, and doping densities as that of the GaN-AlN-(4H)SiC based heterostructure PSD. While there have been studies on GaN-AlN-SiC lateral heterostructures, their primary focus has been on lateral conduction in the GaN structure with a thick (typically >300 nm) AlN buffer layer residing on top of a SiC substrate. Such an approach will not be useful for our vertical PSD because of the thick AlN layer. As such, first, a scaled molecular dynamics simulation (MDS) is carried out in DMol(3) emulating the GaN-AlN-(4H)SiC heterointerface pn junction of the vertical PSD (with 1 nm AlN buffer) to assess the possibility of vertical conduction and stability of the heterointerface by calculating the density of states (DOS) at the Fermi level and the potential energy, respectively. Subsequently, detailed electrical simulations of the GaN-AlN-(4H)SiC and all-(4H)SiC vertical PSDs are carried out in Silvaco to assess their switching performances, gain, on-state drop, and blocking capabilities. The overall results indicate that, the GaN-AlN-(4H)SiC vertical PSD provides superior switching performance and optical absorption compared to the all-(4H)SiC vertical PSD, while the latter provides better gain. The blocking capabilities and forward drops are found to be comparable for both the PSDs from a practical standpoint. (C) 2011 Elsevier Ltd. All rights reserved.