# How Microchip Technology (MCHP) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/mchp
> 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 MCHP alone. It places MCHP (Microchip Technology Incorporated) 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 MCHP stands in the market, and of the alternatives worth a closer look.

Period covered: MCHP's full trading record, from March 1993 through September 2026. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** The slide is MCHP's own: it is 25.7% below its high, against 1.3% for the S&P 500. Over the past 6 months, MCHP fell 4.6% while the S&P 500 rose 9.1%.
- **Stock or market?:** MCHP fell 5.2% over the past 3 months, 3.0 points behind the semiconductors ETF SMH (VanEck Semiconductor ETF), which fell 2.2%. The S&P 500 rose 3.9%. Its semiconductor peers did not move as one over the past 3 months: ADI (Analog Devices) rose 6.9%, while AVGO (Broadcom) fell 11.4%.
- **Past 1 to 3 years:** MCHP's 63.8% fall from May 2024 to April 2025 took 13 months to heal. the S&P 500 fell 5.1% over those same dates. MCHP finished behind the S&P 500 in both 2024 and 2025.
- **Long term:** MCHP turned $10,000 into $30,700 over the past decade, against $42,100 in the S&P 500.
- **In a crash:** MCHP has tended to fall harder than the S&P 500 in crashes, about 1.2 times the index's decline. The Covid crash took 49.0% off MCHP, against 33.7% for the S&P 500. That was more than AVGO (Broadcom, 46.8%) but less than NXPI (NXP Semiconductors, 52.0%).
- **Diversification:** MCHP is more of the same, not a cushion: a correlation of 0.63 with the S&P 500 over 5 years and 0.63 with the total US market, more closely than 94% of stocks worth at least $300 million. Over 10 years, MCHP's beta versus the S&P 500 was 1.72: in the S&P 500's rising months it gained 1.3 times as much as the index, and in falling months it lost 1.7 times as much.
- **Better options**
  - **Popular alternatives:** TSM (Taiwan Semiconductor Manufacturing), ADI (Analog Devices) and TXN (Texas Instruments) earned more than MCHP with less volatility over the past 5 years. TSM returned 31.5% a year at 38.5% volatility, against 2.5% a year at 45.9%.
  - **Nearby categories and themes:** MSFT (Microsoft, software) and MSI (Motorola Solutions, communications equipment) earned more than MCHP with less volatility over the past 5 years. MSFT returned 12.5% a year at 28.2% volatility, against 2.5% a year at 45.9%.
  - **Versus the S&P 500:** Simply owning the S&P 500 would have done better over the past 5 years: 12.7% a year at 17.1% volatility, against 2.5% at 45.9% for MCHP.

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

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

- $10,000 invested in MCHP at the end of September 1997 would have grown to $217,246 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 MCHP, and AMAT finished highest, at $594,575.

## MCHP 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.

- MCHP is still 25.7% below its all-time high.
- MCHP's deepest decline since it began trading in 1993 was 63.8%, from May 2024 to April 2025. It took 13 months from the low to climb back to its old high.
- Over 29 full calendar years, MCHP's best was 1999, when it returned 85.0%, and its worst was 2024, when it lost 35.0%. It lost money in ten of those years.

- Type: Stock, Technology (Semiconductors)
- Trading since: March 19, 1993
- Market value: $41B
- Volatility (5 years): 45.9%; Sharpe ratio: 0.28
- Worst decline ever: −63.8%, from May 22, 2024 to April 8, 2025; back at its high by May 4, 2026

| Period | MCHP total return |
| --- | --- |
| 1 month | +1.4% |
| 3 months | −5.2% |
| 6 months | −4.6% |
| year to date | +18.6% |
| 1 year | +16.0% |
| 3 years | +8.5% |
| 5 years | +13.0% |
| 10 years | +207% |

## MCHP against the whole market

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

### How does MCHP rank among all stocks?

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

- MCHP lands in the broad middle of the market on every measure here. MCHP's 10-year return ranks in the top 38% of the 2,202 stocks worth at least $300 million with 10 years of history.

| Measure | MCHP | Rank |
| --- | --- | --- |
| 1-year return | +16.0% | 1,366 of 3,287 (top 42%) |
| 3-year return | +8.5% | 2,182 of 3,017 (top 73%) |
| 5-year return | +13.0% | 1,556 of 2,893 (top 54%) |
| 10-year return | +207% | 836 of 2,202 (top 38%) |
| Volatility, 5 years | 45.9% | 1,739 of 2,893 (top 61%) |
| Sharpe ratio, 5 years | 0.28 | 1,626 of 2,893 (top 57%) |
| Worst decline, past 10 years | −63.8% | 1,032 of 2,187 (top 48%) |

### What has beaten MCHP 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).

- 941 stocks and 749 ETFs worth at least $500 million sit in the green region: each earned more than MCHP over the past 5 years with smaller price swings. That is 47% of the 3,633 screened.
- Among those with at least half MCHP's swings, CAH has the best return for its risk: 42.1% a year at 24.7% volatility, 46% less than MCHP's 45.9%, and a Sharpe ratio (return above cash per unit of volatility) of 1.55 against 0.28 for MCHP. ATI earned the most, 61.8% a year, while still swinging less than MCHP (42.9% against 45.9%).
- Among MCHP's popular alternatives, TSM, ADI and KEYS are in the region. TSM earned 31.5% a year against 2.5% a year for MCHP, at 38.5% volatility, 16% less than MCHP's 45.9%.

### Is there a better investment than MCHP?

The table below lists investments that beat MCHP 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 MCHP's popular alternatives, TSM, ADI and TXN earned more than MCHP with less volatility over the past 5 years. TSM returned 31.5% a year at 38.5% volatility, against 2.5% a year at 45.9%.
- Looking beyond its popular alternatives, MSFT (software) and MSI (communications equipment) earned more than MCHP with less volatility over the past 5 years. MSFT returned 12.5% a year at 28.2% volatility, against 2.5% a year at 45.9%.
- Simply owning the S&P 500 would have done better over the past 5 years: 12.7% a year at 17.1% volatility, against 2.5% at 45.9% for MCHP.

The 15 strongest of 1,690 investments that beat MCHP 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 MCHP | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| MCHP: Microchip Technology Incorporated (this page) |  | +2.5% | 45.9% | 0.28 | −63.8% | +207% |  |  |
| [VTI](https://easycompare.io/research/vti): Vanguard Morningstar Total Stock Market ETF | US Total Market | +11.5% | 17.5% | 0.71 | −35.0% | +302% | 0.63 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VOO](https://easycompare.io/research/voo): Vanguard S&P 500 ETF | US Large-Cap Equity | +12.8% | 16.9% | 0.80 | −34.0% | +324% | 0.63 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [BRK-B](https://easycompare.io/research/brk-b): Berkshire Hathaway Inc. | Insurance | +13.4% | 17.1% | 0.82 | −29.6% | +274% | 0.10 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [V](https://easycompare.io/research/v): Visa Inc. | Payment Processing | +12.8% | 22.9% | 0.64 | −36.4% | +429% | 0.28 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [KO](https://easycompare.io/research/ko): The Coca-Cola Company | Food & Beverages | +14.7% | 16.8% | 0.91 | −37.0% | +204% | 0.09 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [COST](https://easycompare.io/research/cost): Costco Wholesale Corporation | Discount Retail | +17.4% | 22.9% | 0.82 | −31.4% | +685% | 0.32 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [QQQ](https://easycompare.io/research/qqq): Invesco QQQ Trust, Series 1 | US Large-Cap Growth | +14.5% | 23.0% | 0.71 | −35.1% | +553% | 0.66 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VTV](https://easycompare.io/research/vtv): Vanguard Morningstar Value ETF | US Large-Cap Value | +12.1% | 13.7% | 0.90 | −36.8% | +235% | 0.50 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [SGOV](https://easycompare.io/research/sgov): iShares 0-3 Month Treasury Bond ETF | Treasury Bonds | +3.8% | 0.3% | 13.25 | −0.3% | — | -0.01 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [LIN](https://easycompare.io/research/lin): Linde plc | Chemicals | +11.5% | 20.9% | 0.63 | −32.6% | +394% | 0.48 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VGT](https://easycompare.io/research/vgt): Vanguard Information Technology ETF | Technology Equity | +18.4% | 26.0% | 0.78 | −35.1% | +779% | 0.64 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [PGR](https://easycompare.io/research/pgr): The Progressive Corporation | Property & Casualty Insurance | +21.3% | 25.6% | 0.89 | −30.3% | +816% | 0.05 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [CB](https://easycompare.io/research/cb): Chubb Limited | Property & Casualty Insurance | +15.7% | 20.4% | 0.82 | −42.6% | +248% | 0.04 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VIG](https://easycompare.io/research/vig): Vanguard Dividend Appreciation ETF | US Dividend Equity | +10.4% | 14.1% | 0.78 | −31.7% | +258% | 0.53 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [TRV](https://easycompare.io/research/trv): The Travelers Companies, Inc. | Property & Casualty Insurance | +22.4% | 22.3% | 1.02 | −46.3% | +347% | 0.00 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |

## MCHP against its popular alternatives

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

### How do MCHP'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.

- Seven of the 21 popular alternatives, led by AVGO, TSM and ADI, were both more rewarding and calmer than MCHP over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, MCHP returned 2.5% a year, less than the S&P 500's 12.7%, with higher volatility (45.9% against 17.1%).

### Has MCHP consistently beaten its popular alternatives?

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

- 11 of the 22 popular alternatives, led by ADI, TXN and TSM, outperformed MCHP in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- ADI, TXN and TSM outperformed MCHP in every long-term period and in all but one short-term period, the most consistent record in the group.
- AVGO, TSM and AMAT earned more for the risk they took than MCHP (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of MCHP | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| MCHP: Microchip Technology Incorporated (this page) | +16.0% | +8.5% | +13.0% | +207% |  |  | 0.28 |
| [ADI](https://easycompare.io/research/adi): Analog Devices, Inc. | +63.3% | +150% | +144% | +652% | 5/5 short-term, 3/3 long-term | all-weather | 0.69 |
| [TXN](https://easycompare.io/research/txn): Texas Instruments Incorporated | +58.7% | +105% | +60.5% | +424% | 5/5 short-term, 3/3 long-term | all-weather | 0.45 |
| [TSM](https://easycompare.io/research/tsm): Taiwan Semiconductor Manufacturing Company Limited | +44.3% | +382% | +293% | +1,505% | 4/5 short-term, 3/3 long-term | all-weather | 0.91 |
| [KEYS](https://easycompare.io/research/keys): Keysight Technologies, Inc. | +103% | +172% | +91.9% | +923% | 4/5 short-term, 3/3 long-term | all-weather | 0.55 |
| SLAB: Silicon Laboratories Inc. | +60.8% | +115% | +47.7% | +277% | 4/5 short-term, 3/3 long-term | all-weather | 0.39 |
| [AMAT](https://easycompare.io/research/amat): Applied Materials, Inc. | +78.5% | +209% | +215% | +1,488% | 3/5 short-term, 3/3 long-term | consistent | 0.72 |
| MTSI: MACOM Technology Solutions Holdings, Inc. | +87.4% | +249% | +302% | +588% | 3/5 short-term, 3/3 long-term | consistent | 0.83 |
| ON: ON Semiconductor Corporation | +37.8% | −10.9% | +66.0% | +540% | 3/5 short-term, 2/3 long-term | consistent | 0.46 |
| [STM](https://easycompare.io/research/stm): STMicroelectronics N.V. | +52.9% | +18.8% | +11.6% | +525% | 3/5 short-term, 2/3 long-term | consistent | 0.28 |
| DIOD: Diodes Incorporated | +49.4% | +14.1% | −5.6% | +324% | 3/5 short-term, 2/3 long-term | consistent | 0.23 |
| VSH: Vishay Intertechnology, Inc. | +66.1% | +32.0% | +62.9% | +146% | 3/5 short-term, 2/3 long-term | consistent | 0.44 |
| [MPWR](https://easycompare.io/research/mpwr): Monolithic Power Systems, Inc. | +21.9% | +204% | +159% | +1,659% | 2/5 short-term, 3/3 long-term |  | 0.62 |
| LSCC: Lattice Semiconductor Corporation | +52.8% | +46.9% | +58.3% | +1,555% | 2/5 short-term, 3/3 long-term |  | 0.45 |
| [TEL](https://easycompare.io/research/tel): TE Connectivity plc | −4.1% | +90.6% | +57.4% | +311% | 1/5 short-term, 3/3 long-term |  | 0.46 |
| [AVGO](https://easycompare.io/research/avgo): Broadcom Inc. | −3.5% | +305% | +617% | +2,380% | 0/5 short-term, 3/3 long-term |  | 1.11 |
| [NXPI](https://easycompare.io/research/nxpi): NXP Semiconductors N.V. | +10.0% | +34.9% | +31.9% | +159% | 2/5 short-term, 2/3 long-term |  | 0.34 |
| SITM: SiTime Corporation | +70.6% | +364% | +124% | — | 2/5 short-term, 2/3 long-term |  | 0.60 |
| SYNA: Synaptics Incorporated | +61.9% | +29.9% | −33.2% | +72.3% | 5/5 short-term, 1/3 long-term |  | 0.12 |
| ALGM: Allegro MicroSystems, Inc. | +11.2% | +17.5% | +5.5% | — | 1/5 short-term, 1/3 long-term |  | 0.28 |
| SWKS: Skyworks Solutions, Inc. | +10.2% | −2.8% | −43.5% | +29.2% | 3/5 short-term, 0/3 long-term |  | -0.05 |
| GFS: GLOBALFOUNDRIES Inc. | +32.7% | −13.2% | — | — | 2/5 short-term, 0/3 long-term |  | — |
| POWI: Power Integrations, Inc. | +5.5% | −30.5% | −49.8% | +66.8% | 1/5 short-term, 0/3 long-term |  | -0.07 |

### How did MCHP do year by year?

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

- Among its popular alternatives, AVGO came out ahead of MCHP most often, in 13 of the 16 years both traded.
- MCHP finished ahead of the S&P 500 in 16 of its 29 full calendar years, and behind it in each of the last two.
- Ranked against its popular alternatives each year, MCHP finished in the top quarter in five of 29 years and in the bottom quarter in six. In 2025, it ranked 12 of 23.

| Year | MCHP | SPY |
| --- | --- | --- |
| 2025 | +14.6% | +17.7% |
| 2024 | −34.9% | +24.9% |
| 2023 | +30.9% | +26.2% |
| 2022 | −18.0% | −18.2% |
| 2021 | +27.5% | +28.7% |
| 2020 | +33.7% | +18.3% |
| 2019 | +48.1% | +31.2% |
| 2018 | −16.7% | −4.6% |
| 2017 | +39.5% | +21.7% |
| 2016 | +41.6% | +12.0% |

## Risk and diversification

How MCHP 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 MCHP's worst declines?

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

- In all five of MCHP's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: MCHP fell 62.5% from September 1997 to August 1998, while the S&P 500 rose 1.9%.
- The longest climb back to a previous high took 23 months, after MCHP fell 57.8% from June 2007 to January 2009.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −63.8% | May 22, 2024 | April 8, 2025 | May 4, 2026 | −5.1% |  |
| −62.5% | September 23, 1997 | August 31, 1998 | June 16, 1999 | +1.9% |  |
| −58.7% | April 7, 2000 | December 20, 2000 | May 14, 2002 | −16.0% | dot-com bust |
| −57.8% | June 15, 2007 | January 20, 2009 | December 2, 2010 | −45.6% | 2008 financial crisis |
| −53.6% | May 20, 2002 | September 16, 2002 | November 3, 2003 | −17.8% | dot-com bust |

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

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

- Among its popular alternatives, KEYS held up best, falling less than MCHP in five of the six crashes they both traded through.
- MCHP fell further than the S&P 500 in six of the ten crashes it has traded through. The clearest case was the Covid crash, when MCHP fell 49.0% and the S&P 500 fell 33.7%.

| Crash | Dates | MCHP fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | −58.7% | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −55.2% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −0.4% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −12.7% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −18.6% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −14.4% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −25.9% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −49.0% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −35.3% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −3.8% | −3.4% |

### How closely does MCHP 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.

- 14 of the 19 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than MCHP's 0.75, led by AVGO, TSM and KEYS.
- KEYS took just 71% of the S&P 500's losses, against 170% for MCHP, while still keeping 121% of its gains.
- Over the past 10 years, MCHP captured 127% of the S&P 500's gains in rising months and 170% of its losses in falling months, with a beta of 1.72. It amplified the market's moves in both directions.

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

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| MCHP: Microchip Technology Incorporated (this page) | 127% | 170% | 1.72 |
| [ADI](https://easycompare.io/research/adi): Analog Devices, Inc. | 117% | 92.0% | 1.20 |
| [TXN](https://easycompare.io/research/txn): Texas Instruments Incorporated | 113% | 108% | 1.18 |
| [TSM](https://easycompare.io/research/tsm): Taiwan Semiconductor Manufacturing Company Limited | 138% | 75.0% | 1.15 |
| [KEYS](https://easycompare.io/research/keys): Keysight Technologies, Inc. | 121% | 71.0% | 1.08 |
| SLAB: Silicon Laboratories Inc. | 113% | 130% | 1.18 |
| [AMAT](https://easycompare.io/research/amat): Applied Materials, Inc. | 152% | 97.0% | 1.51 |
| MTSI: MACOM Technology Solutions Holdings, Inc. | 148% | 157% | 1.93 |
| ON: ON Semiconductor Corporation | 161% | 185% | 1.95 |
| [STM](https://easycompare.io/research/stm): STMicroelectronics N.V. | 122% | 104% | 1.72 |
| DIOD: Diodes Incorporated | 128% | 146% | 1.53 |
| VSH: Vishay Intertechnology, Inc. | 118% | 160% | 1.61 |
| [MPWR](https://easycompare.io/research/mpwr): Monolithic Power Systems, Inc. | 156% | 107% | 1.31 |
| LSCC: Lattice Semiconductor Corporation | 156% | 102% | 1.45 |
| [TEL](https://easycompare.io/research/tel): TE Connectivity plc | 109% | 120% | 1.26 |
| [AVGO](https://easycompare.io/research/avgo): Broadcom Inc. | 158% | 86.0% | 1.19 |
| [NXPI](https://easycompare.io/research/nxpi): NXP Semiconductors N.V. | 115% | 157% | 1.63 |
| SYNA: Synaptics Incorporated | 117% | 188% | 1.64 |
| SWKS: Skyworks Solutions, Inc. | 88.0% | 149% | 1.31 |
| POWI: Power Integrations, Inc. | 89.0% | 133% | 1.28 |

### What diversifies MCHP?

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 MCHP into MCK would have cut the portfolio's volatility by 20% over the past 5 years and raised its annual return (+2.5% for MCHP alone, +10.4% for the mix).
- Among large ETFs, LVHI, DXJ and EMLP have moved largely independently of MCHP over the past 5 years, with correlations of 0.34 or lower, and each still earned a positive 5-year return.
- MCK made money in six of the ten calendar years in which MCHP lost money.

| Investment | Correlation with MCHP | 5Y return | Volatility | Sharpe | Rose in MCHP's 10 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | 0.32 | +119% | 11.1% | 1.48 | 2 of 10 |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.34 | +225% | 19.1% | 1.34 | 3 of 10 |
| EMLP: First Trust North American Energy Infrastructure Fund | 0.29 | +101% | 14.5% | 1.04 | 2 of 10 |
| EWP: iShares MSCI Spain ETF | 0.43 | +140% | 20.3% | 0.97 | 5 of 10 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.05 | +126% | 18.9% | 0.96 | 4 of 10 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.11 | +177% | 25.5% | 0.93 | 6 of 10 |
| AMLP: Alerian MLP ETF | 0.15 | +111% | 18.9% | 0.89 | 3 of 10 |
| EFV: iShares MSCI EAFE Value ETF | 0.48 | +89.0% | 15.9% | 0.88 | 3 of 10 |

## Common questions

### What was MCHP's worst drawdown?

MCHP's deepest decline since it began trading in 1993 was 63.8%, from May 2024 to April 2025. It took 13 months from the low to climb back to its old high.

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

Over 29 full calendar years, MCHP's best year was 1999, when it returned 85.0%. Its worst was 2024, with a return of -35.0%.

### Is there a better investment than MCHP?

Among MCHP's popular alternatives, TSM, ADI and TXN earned more than MCHP with less volatility over the past 5 years. TSM returned 31.5% a year at 38.5% volatility, against 2.5% a year at 45.9%. Looking beyond its popular alternatives, MSFT (software) and MSI (communications equipment) earned more than MCHP with less volatility over the past 5 years. MSFT returned 12.5% a year at 28.2% volatility, against 2.5% a year at 45.9%.

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

Yes. MCHP's volatility over the past 5 years was 45.9%, 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, MCHP's return lands within 45.9% 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 MCHP's Sharpe ratio?

MCHP's Sharpe ratio over the past 5 years was 0.28, against 0.79 for the S&P 500, so MCHP earned less 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 MCHP with the S&P 500?

Over the past 5 years, MCHP's monthly returns had a correlation of 0.63 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 MCHP instead: the lower it is, the more that option would diversify a MCHP holding.

### What are the best alternatives to MCHP?

Of the 22 popular alternatives we compared, 11 outperformed MCHP in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: ADI, TXN and TSM.

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

MCHP finished ahead of the S&P 500 (SPY) in 16 of 29 full calendar years. In 2025, it returned +14.6%, against +17.7% for the index.

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

MCHP fell less than the S&P 500 (SPY) in two of the ten major crashes it has traded through, and further in six. The clearest case was the Covid crash, when MCHP fell 49.0% and the S&P 500 fell 33.7%.

### What diversifies MCHP?

These had a low correlation with MCHP over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.32), DXJ (correlation 0.34) and EMLP (correlation 0.29); among large stocks, CAH (correlation 0.08), CLS (correlation 0.35) and FIX (correlation 0.40). 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/mchp
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against MCHP live: https://betterthanspy.com/?b=MCHP&utm_source=easycompare&utm_medium=research