# How KLA (KLAC) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/klac
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on KLAC alone. It places KLAC (KLA Corporation) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where KLAC stands in the market, and of the alternatives worth a closer look.

Period covered: KLAC's full trading record, from October 1986 through September 2026. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** Over the past 3 months, KLAC fell 22.0% while the S&P 500 rose 3.9%. The slide is KLAC's own: it is 46.3% below its high, against 1.3% for the S&P 500.
- **Stock or market?:** The weakness is KLAC's own: it fell 22.0% over the past 3 months while the semiconductor equipment ETF SMH (VanEck Semiconductor ETF) fell 2.2%. The S&P 500 rose 3.9%. Its semiconductor equipment peers did not move as one over the past 3 months: TER (Teradyne) rose 0.9%, while MKSI (MKS) fell 34.8%.
- **Past 1 to 3 years:** KLAC has run far ahead of the market, rising 41.0% over the past year against 15.8% for the S&P 500 and 17.9% for the Nasdaq 100. The same gap shows up over 3 years (258% against 89.3%). KLAC lagged its semiconductor equipment peers in 2023, then moved up the pack in 2025.
- **Long term:** KLAC turned $10,000 into $263,000 over the past decade, against $42,100 in the S&P 500. KLAC's 10-year return of 2,534% puts it ahead of 99% of the stocks worth at least $300 million with that much history. The S&P 500 returned 321%.
- **In a crash:** Across seven sell-offs, KLAC has typically fallen 1.3 times as far as the S&P 500. In the 2022 bear market, KLAC fell 37.6%, against 24.5% for the S&P 500, and less than semiconductor equipment peers such as ASML (ASML Holding, 48.4%).
- **Diversification:** KLAC is some diversification, but not a hedge: a correlation of 0.50 with the S&P 500 over 5 years and 0.50 with the total US market, more closely than 73% of stocks worth at least $300 million.
- **Better options**
  - **Popular alternatives:** MU (Micron Technology) and LRCX (Lam Research) were ahead of KLAC in most short and long periods.
  - **Nearby categories and themes:** ASX (ASE Technology Holding, semiconductors) earned more than KLAC with less volatility over the past 5 years: 48.8% a year at 43.0% volatility, against 38.7% a year at 46.7%.
  - **Whole market:** Few investments have done better on both counts: only 18 of the 3,633 stocks and funds worth at least $500 million earned more than KLAC with less volatility over the past 5 years, among them LLY (Eli Lilly and Company), PBR (Petróleo Brasileiro S.A. - Petrobras) and PBR-A (Petróleo Brasileiro S.A. - Petrobras).

## How much would $10,000 in KLAC have grown?

This chart tracks a hypothetical $10,000 investment in KLAC over the past 29 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of KLAC over the same span and KLAC's popular alternatives, among those that traded for the entire period.

- $10,000 invested in KLAC at the end of September 1997 would have grown to $1,107,588 by September 2026, more than the $132,907 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of KLAC, and AAPL finished highest, at $20,534,853.

## KLAC at a glance

This section summarizes the key facts about the stock, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- KLAC is still 46.3% below its all-time high.
- KLAC's deepest decline since it began trading in 1986 was 83.8%, from April 2000 to November 2008. It took about six years from the low to climb back to its old high.
- Over 29 full calendar years, KLAC's best was 1999, when it returned 157%, and its worst was 2008, when it lost 53.5%. It lost money in seven of those years.

- Type: Stock, Technology (Semiconductors)
- Trading since: October 17, 1986
- Market value: $211B
- Volatility (5 years): 46.7%; Sharpe ratio: 0.94
- Worst decline ever: −83.8%, from April 7, 2000 to November 19, 2008; back at its high by September 8, 2014

| Period | KLAC total return |
| --- | --- |
| 1 month | −12.1% |
| 3 months | −22.0% |
| 6 months | −10.2% |
| year to date | +27.4% |
| 1 year | +41.0% |
| 3 years | +258% |
| 5 years | +413% |
| 10 years | +2,534% |

## KLAC against the whole market

Where KLAC ranks among every stock and fund, and what across the market has done better.

### How does KLAC rank among all stocks?

This section ranks KLAC on return, volatility, risk-adjusted return and worst decline against every stock worth at least $300 million with enough history.

- KLAC's 10-year return ranks in the top 1% of the 2,202 stocks worth at least $300 million with 10 years of history.

| Measure | KLAC | Rank |
| --- | --- | --- |
| 1-year return | +41.0% | 710 of 3,287 (top 22%) |
| 3-year return | +258% | 288 of 3,017 (top 10%) |
| 5-year return | +413% | 95 of 2,893 (top 4%) |
| 10-year return | +2,534% | 29 of 2,202 (top 2%) |
| Volatility, 5 years | 46.7% | 1,779 of 2,893 (top 62%) |
| Sharpe ratio, 5 years | 0.94 | 141 of 2,893 (top 5%) |
| Worst decline, past 10 years | −46.3% | 331 of 2,187 (top 16%) |

### What has beaten KLAC on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 18 stocks worth at least $500 million sit in the green region: each earned more than KLAC over the past 5 years with smaller price swings. That is fewer than 1% of the 3,633 screened. Few investments beat it on both counts.
- Among those with at least half KLAC's swings, CAH has the best return for its risk: 42.1% a year at 24.7% volatility, 47% less than KLAC's 46.7%, and a Sharpe ratio (return above cash per unit of volatility) of 1.55 against 0.94 for KLAC. ATI earned the most, 61.8% a year, while still swinging less than KLAC (42.9% against 46.7%).
- None of KLAC's popular alternatives made it, but ASX (semiconductors) did: 48.8% a year at 43.0% volatility, 8% less than KLAC's 46.7%.

### Is there a better investment than KLAC?

The table below lists investments that beat KLAC over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes.

- Among KLAC's popular alternatives, MU and LRCX were ahead of KLAC in most short and long periods.
- Looking beyond its popular alternatives, ASX (semiconductors) earned more than KLAC with less volatility over the past 5 years: 48.8% a year at 43.0% volatility, against 38.7% a year at 46.7%.
- Few investments have done better on both counts: only 18 of the 3,633 stocks and funds worth at least $500 million earned more than KLAC with less volatility over the past 5 years, among them LLY, PBR and PBR-A.

The 15 strongest of 18 investments that beat KLAC over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with KLAC | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| KLAC: KLA Corporation (this page) |  | +38.7% | 46.7% | 0.94 | −46.3% | +2,534% |  |  |
| ESLT: Elbit Systems Ltd. | Aerospace & Defense | +39.8% | 34.6% | 1.15 | −35.4% | +765% | -0.12 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| ATI: ATI Inc. | Metals & Mining | +61.8% | 42.9% | 1.34 | −82.4% | +929% | 0.21 | Higher return, lower volatility; Higher return in most periods |
| [LLY](https://easycompare.io/research/lly): Eli Lilly and Company | Pharmaceuticals | +40.7% | 32.8% | 1.21 | −34.5% | +1,807% | 0.25 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [ASX](https://easycompare.io/research/asx): ASE Technology Holding Co., Ltd. | Semiconductors | +48.8% | 43.0% | 1.15 | −52.5% | +967% | 0.66 | Higher return, lower volatility; Higher return in most periods |
| JXN: Jackson Financial Inc. | Life Insurance | +41.7% | 43.3% | 1.03 | −48.4% | — | 0.04 | Higher return, lower volatility; Higher return in most periods |
| [MPC](https://easycompare.io/research/mpc): Marathon Petroleum Corporation | Oil & Gas | +51.2% | 33.4% | 1.41 | −79.7% | +1,387% | 0.00 | Higher return, lower volatility |
| [PBR-A](https://easycompare.io/research/pbr-a): Petróleo Brasileiro S.A. - Petrobras | Integrated Oil & Gas | +51.8% | 37.5% | 1.31 | −71.7% | +768% | -0.01 | Higher return, lower volatility |
| TK: Teekay Corporation | Oil & Gas Midstream | +47.1% | 41.7% | 1.13 | −83.8% | +244% | -0.01 | Higher return, lower volatility; Higher return in most periods |
| [HWM](https://easycompare.io/research/hwm): Howmet Aerospace Inc. | Aerospace & Defense | +47.3% | 32.5% | 1.36 | −68.9% | +1,028% | 0.31 | Higher return, lower volatility |
| [CAH](https://easycompare.io/research/cah): Cardinal Health, Inc. | Health Care Distribution | +42.1% | 24.7% | 1.55 | −46.1% | +349% | 0.34 | Higher return, lower volatility |
| [PBR](https://easycompare.io/research/pbr): Petróleo Brasileiro S.A. - Petrobras | Integrated Oil & Gas | +50.3% | 37.5% | 1.28 | −75.3% | +674% | -0.05 | Higher return, lower volatility |
| INSW: International Seaways, Inc. | Oil & Gas | +56.5% | 40.5% | 1.31 | −57.4% | — | -0.07 | Higher return, lower volatility |
| [VLO](https://easycompare.io/research/vlo): Valero Energy Corporation | Oil & Gas | +44.2% | 36.9% | 1.18 | −71.9% | +1,061% | 0.08 | Higher return, lower volatility |
| [TRGP](https://easycompare.io/research/trgp): Targa Resources Corp. | Oil & Gas Midstream | +41.8% | 31.7% | 1.27 | −90.8% | +829% | 0.15 | Higher return, lower volatility |
| EME: EMCOR Group, Inc. | Engineering & Construction | +43.0% | 35.3% | 1.20 | −48.0% | +1,202% | 0.31 | Higher return, lower volatility |

## KLAC against its popular alternatives

The investments people most often weigh against KLAC, compared period by period and year by year.

### How do KLAC's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- None of the 21 popular alternatives earned more than KLAC over the past 5 years with smaller price swings, so every higher return on the map came with a bumpier ride.
- 17 of the 21 popular alternatives earned less than KLAC over the past 5 years while swinging more, the weaker corner of the map.
- Over the past 5 years, KLAC returned 38.7% a year, more than the S&P 500's 12.7%, with higher volatility (46.7% against 17.1%).

### Has KLAC consistently beaten its popular alternatives?

This section compares KLAC with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- MU outperformed KLAC in every long-term period and in all but one short-term period, the most consistent record in the group.
- Two of the 22 popular alternatives, MU and LRCX, outperformed KLAC in at least 3 of 5 short-term and 2 of 3 long-term timeframes.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of KLAC | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| KLAC: KLA Corporation (this page) | +41.0% | +258% | +413% | +2,534% |  |  | 0.94 |
| [MU](https://easycompare.io/research/mu): Micron Technology, Inc. | +334% | +1,246% | +1,244% | +5,243% | 4/5 short-term, 3/3 long-term | all-weather | 1.20 |
| [LRCX](https://easycompare.io/research/lrcx): Lam Research Corporation | +83.7% | +350% | +390% | +2,989% | 4/5 short-term, 2/3 long-term | consistent | 0.89 |
| [TSM](https://easycompare.io/research/tsm): Taiwan Semiconductor Manufacturing Company Limited | +44.3% | +382% | +293% | +1,505% | 5/5 short-term, 1/3 long-term |  | 0.91 |
| [TER](https://easycompare.io/research/ter): Teradyne, Inc. | +142% | +271% | +193% | +1,565% | 3/5 short-term, 1/3 long-term |  | 0.67 |
| CAMT: Camtek Ltd. | +4.1% | +149% | +231% | +4,551% | 1/5 short-term, 1/3 long-term |  | 0.70 |
| [ASML](https://easycompare.io/research/asml): ASML Holding N.V. | +57.5% | +188% | +123% | +1,628% | 5/5 short-term, 0/3 long-term |  | 0.59 |
| VECO: Veeco Instruments Inc. | +50.9% | +77.7% | +90.3% | +110% | 5/5 short-term, 0/3 long-term |  | 0.51 |
| [UMC](https://easycompare.io/research/umc): United Microelectronics Corporation | +166% | +202% | +147% | +1,610% | 4/5 short-term, 0/3 long-term |  | 0.63 |
| FORM: FormFactor, Inc. | +144% | +227% | +201% | +964% | 4/5 short-term, 0/3 long-term |  | 0.67 |
| COHU: Cohu, Inc. | +132% | +61.0% | +68.5% | +406% | 4/5 short-term, 0/3 long-term |  | 0.46 |
| [INTC](https://easycompare.io/research/intc): Intel Corp. | +141% | +167% | +79.8% | +219% | 4/5 short-term, 0/3 long-term |  | 0.49 |
| AEHR: Aehr Test Systems | +115% | +96.2% | +207% | +1,987% | 3/5 short-term, 0/3 long-term |  | 0.72 |
| [AMAT](https://easycompare.io/research/amat): Applied Materials, Inc. | +78.5% | +209% | +215% | +1,488% | 3/5 short-term, 0/3 long-term |  | 0.72 |
| ONTO: Onto Innovation Inc. | +61.9% | +86.2% | +200% | +1,005% | 3/5 short-term, 0/3 long-term |  | 0.67 |
| ACLS: Axcelis Technologies, Inc. | +34.6% | −21.9% | +126% | +730% | 3/5 short-term, 0/3 long-term |  | 0.57 |
| ASYS: Amtech Systems, Inc. | +71.5% | +75.1% | +12.3% | +207% | 3/5 short-term, 0/3 long-term |  | 0.38 |
| UCTT: Ultra Clean Holdings, Inc. | +76.8% | +108% | +16.2% | +574% | 2/5 short-term, 0/3 long-term |  | 0.37 |
| GFS: GLOBALFOUNDRIES Inc. | +32.7% | −13.2% | — | — | 2/5 short-term, 0/3 long-term |  | — |
| ICHR: Ichor Holdings, Ltd. | +87.0% | +63.9% | +6.6% | — | 2/5 short-term, 0/3 long-term |  | 0.38 |
| MKSI: MKS Inc. | +49.8% | +191% | +50.5% | +371% | 1/5 short-term, 0/3 long-term |  | 0.42 |
| ACMR: ACM Research, Inc. | +38.1% | +208% | +54.8% | — | 1/5 short-term, 0/3 long-term |  | 0.51 |
| NVMI: Nova Ltd. | −5.1% | +232% | +213% | +2,512% | 0/5 short-term, 0/3 long-term |  | 0.71 |

### How did KLAC do year by year?

This table shows each investment's total return in every full calendar year since 1997, along with where KLAC ranked among its popular alternatives each year.

- Ranked against its popular alternatives each year, KLAC finished in the top quarter in eight of 29 years and in the bottom quarter in two. In 2025, it ranked 5 of 23.
- KLAC finished ahead of the S&P 500 in 17 of its 29 full calendar years.
- Among its popular alternatives, LRCX came out ahead of KLAC most often, in 17 of the 29 years both traded.

| Year | KLAC | SPY |
| --- | --- | --- |
| 2025 | +94.5% | +17.7% |
| 2024 | +9.4% | +24.9% |
| 2023 | +56.0% | +26.2% |
| 2022 | −11.2% | −18.2% |
| 2021 | +68.1% | +28.7% |
| 2020 | +47.9% | +18.3% |
| 2019 | +104% | +31.2% |
| 2018 | −12.4% | −4.6% |
| 2017 | +36.7% | +21.7% |
| 2016 | +17.0% | +12.0% |

## Risk and diversification

How KLAC has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were KLAC's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all four of KLAC's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: KLAC fell 72.0% from August 1997 to August 1998, while the S&P 500 rose 3.3%.
- The slowest recovery came after KLAC fell 83.8% from April 2000 to November 2008; it did not regain that peak until September 2014, six years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −83.8% | April 7, 2000 | November 19, 2008 | September 8, 2014 | −38.0% | dot-com bust |
| −76.5% | August 11, 1987 | October 15, 1990 | September 27, 1993 | — |  |
| −72.0% | August 20, 1997 | August 31, 1998 | October 29, 1999 | +3.3% |  |
| −62.4% | September 19, 1995 | September 9, 1996 | February 13, 1997 | +15.9% |  |
| −46.3% | June 30, 2026 | October 20, 2026 | not yet | +3.2% |  |

### How did KLAC do in stock market crashes?

This section measures how far KLAC, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- KLAC fell further than the S&P 500 in nine of the ten crashes it has traded through. The clearest case was the dot-com bust, when KLAC fell 73.2% and the S&P 500 fell 47.5%.
- Among its popular alternatives, INTC held up best, falling less than KLAC in six of the ten crashes they both traded through.

| Crash | Dates | KLAC fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | −73.2% | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −71.8% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −2.8% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −23.0% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −13.5% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −7.5% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −21.6% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −33.8% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −37.6% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −5.9% | −3.4% |

### How closely does KLAC move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- None of the 19 popular alternatives with the same record had a higher capture ratio (upside capture divided by downside capture) than KLAC's 2.57.
- Over the past 10 years, KLAC captured 152% of the S&P 500's gains in rising months and 59% of its losses in falling months, with a beta of 1.32. Its share of the market's gains was larger than its share of the losses.
- UMC took just 52% of the S&P 500's losses, against 59% for KLAC, while still keeping 133% of its gains.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| KLAC: KLA Corporation (this page) | 152% | 59.0% | 1.32 |
| [MU](https://easycompare.io/research/mu): Micron Technology, Inc. | 204% | 114% | 1.75 |
| [LRCX](https://easycompare.io/research/lrcx): Lam Research Corporation | 183% | 104% | 1.56 |
| [TSM](https://easycompare.io/research/tsm): Taiwan Semiconductor Manufacturing Company Limited | 138% | 75.0% | 1.15 |
| [TER](https://easycompare.io/research/ter): Teradyne, Inc. | 167% | 121% | 1.53 |
| CAMT: Camtek Ltd. | 191% | 96.0% | 1.60 |
| [ASML](https://easycompare.io/research/asml): ASML Holding N.V. | 170% | 132% | 1.44 |
| VECO: Veeco Instruments Inc. | 76.0% | 84.0% | 1.38 |
| [UMC](https://easycompare.io/research/umc): United Microelectronics Corporation | 133% | 52.0% | 1.33 |
| FORM: FormFactor, Inc. | 132% | 81.0% | 1.29 |
| COHU: Cohu, Inc. | 122% | 116% | 1.65 |
| [INTC](https://easycompare.io/research/intc): Intel Corp. | 98.0% | 100% | 1.43 |
| AEHR: Aehr Test Systems | 184% | 123% | 2.29 |
| [AMAT](https://easycompare.io/research/amat): Applied Materials, Inc. | 152% | 97.0% | 1.51 |
| ONTO: Onto Innovation Inc. | 139% | 92.0% | 1.41 |
| ACLS: Axcelis Technologies, Inc. | 151% | 136% | 1.67 |
| ASYS: Amtech Systems, Inc. | 171% | 241% | 1.76 |
| UCTT: Ultra Clean Holdings, Inc. | 165% | 156% | 1.93 |
| MKSI: MKS Inc. | 156% | 181% | 1.77 |
| NVMI: Nova Ltd. | 179% | 110% | 1.46 |

### What diversifies KLAC?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in KLAC into MCK would have cut the portfolio's volatility by 19% over the past 5 years and raised its annual return (+43.7% for KLAC alone, +44.7% for the mix).
- Among large ETFs, LVHI, DXJ and EMLP have moved largely independently of KLAC over the past 5 years, with correlations of 0.32 or lower, and each still earned a positive 5-year return.
- XLE made money in four of the seven calendar years in which KLAC lost money.

| Investment | Correlation with KLAC | 5Y return | Volatility | Sharpe | Rose in KLAC's 7 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | 0.18 | +119% | 11.1% | 1.48 | 1 of 7 |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.32 | +225% | 19.1% | 1.34 | 1 of 7 |
| EMLP: First Trust North American Energy Infrastructure Fund | 0.27 | +101% | 14.5% | 1.04 | 1 of 7 |
| HDV: iShares Core High Dividend ETF | 0.20 | +83.3% | 13.0% | 1.00 | 1 of 7 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | -0.05 | +126% | 18.9% | 0.96 | 2 of 7 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | -0.05 | +177% | 25.5% | 0.93 | 4 of 7 |
| [VTV](https://easycompare.io/research/vtv): Vanguard Morningstar Value ETF | 0.44 | +76.6% | 13.7% | 0.90 | 0 of 7 |
| VLUE: iShares MSCI USA Value Factor ETF | 0.49 | +109% | 18.4% | 0.90 | 0 of 7 |

## Common questions

### What was KLAC's worst drawdown?

KLAC's deepest decline since it began trading in 1986 was 83.8%, from April 2000 to November 2008. It took about six years from the low to climb back to its old high.

### What were KLAC's best and worst years?

Over 29 full calendar years, KLAC's best year was 1999, when it returned 157%. Its worst was 2008, with a return of -53.5%.

### Is there a better investment than KLAC?

Among KLAC's popular alternatives, MU and LRCX were ahead of KLAC in most short and long periods. Looking beyond its popular alternatives, ASX (semiconductors) earned more than KLAC with less volatility over the past 5 years: 48.8% a year at 43.0% volatility, against 38.7% a year at 46.7%.

### Is KLAC more volatile than the S&P 500?

Yes. KLAC's volatility over the past 5 years was 46.7%, 2.7 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, KLAC's return lands within 46.7% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is KLAC's Sharpe ratio?

KLAC's Sharpe ratio over the past 5 years was 0.94, against 0.79 for the S&P 500, so KLAC earned more for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is KLAC with the S&P 500?

Over the past 5 years, KLAC's monthly returns had a correlation of 0.50 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against KLAC instead: the lower it is, the more that option would diversify a KLAC holding.

### What are the best alternatives to KLAC?

Of the 22 popular alternatives we compared, two outperformed KLAC in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: MU and LRCX.

### Did KLAC outperform the S&P 500?

KLAC finished ahead of the S&P 500 (SPY) in 17 of 29 full calendar years. In 2025, it returned +94.5%, against +17.7% for the index.

### How did KLAC do in stock market crashes?

KLAC fell less than the S&P 500 (SPY) in none of the ten major crashes it has traded through, and further in nine. The clearest case was the dot-com bust, when KLAC fell 73.2% and the S&P 500 fell 47.5%.

### What diversifies KLAC?

These had a low correlation with KLAC over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.18), DXJ (correlation 0.32) and EMLP (correlation 0.27); among large stocks, CAH (correlation 0.34), CLS (correlation 0.32) and FIX (correlation 0.45). A correlation near zero means the two have moved largely independently.

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## Explore further

- Full page with charts: https://easycompare.io/research/klac
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against KLAC live: https://betterthanspy.com/?b=KLAC&utm_source=easycompare&utm_medium=research