A transistor includes a trench formed in a semiconductor body, the trench having sidewalls and a bottom. The transistor further includes a first semiconductor material disposed in the trench adjacent the sidewalls and a second semiconductor material disposed in the trench and spaced apart from the sidewalls by the first semiconductor material. The second semiconductor material has a different band gap than the first semiconductor material. The transistor also includes a gate material disposed in the trench and spaced apart from the first semiconductor material by the second semiconductor material. The gate material provides a gate of the transistor. Source and drain regions are arranged in the trench with a channel interposed between the source and drain regions in the first or second semiconductor material so that the channel has a lateral current flow direction along the sidewalls of the trench.