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Relative Intelligence · Semiconductors

How VanEck Semiconductor ETF (SMH) compares with the whole market and its popular alternatives

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on SMH alone. It places SMH (VanEck Semiconductor ETF) against 11 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 SMH stands in the market, and of the alternatives worth a closer look.

Period covered: SMH's full trading record, from May 2000 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

Data as of October 20, 2026. Full tables and charts read best on a larger screen.

Rank the market against SMH →Chart SMH vs. 11 alternatives →
On this page12 sections

Key findings

How much would $10,000 in SMH have grown?

This chart tracks a hypothetical $10,000 investment in SMH over the past 25 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of SMH over the same span and SMH's popular alternatives, among those that traded for the entire period. A second view covers the past 5 years, the period the better options further down the page are judged on. It shows not only where each investment ended up but also how smooth or uneven the path was.

Note: The chart covers the past 25 years rather than SMH's full 26 years, because most of its popular alternatives have not traded that long.

Choose a period

From the end of September 2001 to the end of September 2026. The scale is logarithmic, so equal steps up the chart are equal percentage gains. Hover over a fund in the key to pick out its line. 83 of the 1,326 stocks and funds worth at least $500 million that traded the whole period ended ahead of SMH; the chart shows 5, closest alternatives first. The other 3 lines are popular alternatives, shown for context.

$10,000$100,000$1M$10M2001200520092013201720212025$10,000$100,000$1M$10M20012007201320192025
  • AAPL$14M+143,470% total · +33.7% a year
  • NVDA$11M+109,423% total · +32.3% a year
  • AMZN$8M+83,363% total · +30.9% a year
  • TSM$1M+13,478% total · +21.7% a year
  • ESLT$1M+13,097% total · +21.6% a year
  • SMH$660,531+6,505% total · +18.2% a year
  • SOXX$435,742+4,257% total · +16.3% a year
  • XLK$273,782+2,638% total · +14.2% a year
  • IGV$184,528+1,745% total · +12.4% a year
  • SPY (S&P 500)$114,557+1,046% total · +10.2% a year
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From the end of September 2021 to the end of September 2026. The scale is logarithmic, so equal steps up the chart are equal percentage gains. Hover over a fund in the key to pick out its line. 131 of the 3,628 stocks and funds worth at least $500 million that traded the whole period ended ahead of SMH; the chart shows 5, closest alternatives first. The other 3 lines are popular alternatives, shown for context.

$10,000$20,000$50,000$100,000202120222023202420252026$10,000$20,000$50,000$100,000202120222023202420252026
  • STX$128,799+1,188% total · +66.7% a year
  • ATI$113,890+1,039% total · +62.7% a year
  • DELL$112,363+1,024% total · +62.2% a year
  • ASX$70,798+608% total · +47.9% a year
  • LLY$52,411+424% total · +39.3% a year
  • SMH$48,982+390% total · +37.4% a year
  • SOXX$39,747+297% total · +31.8% a year
  • XLK$27,207+172% total · +22.2% a year
  • SPY (S&P 500)$19,000+90.0% total · +13.7% a year
  • IGV$13,343+33.4% total · +5.9% a year
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SMH at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout. These figures serve as the baseline for every comparison that follows.

The fund

Issuer
VanEck
Began trading
May 2000
Expense ratio
0.35%per year
Assets
$66B
Category
Technology

Returns

Past 1 year
+57.8%total return
Past 3 years
+290%+57.4% a year
Past 5 years
+323%+33.4% a year
Past 10 years
+1,665%+33.3% a year
Best calendar year
+87.3%2003
Worst calendar year
−47.0%2002
Losing years
8 of 25full calendar years

Risk

Volatility
36.9%typical yearly swing, 5 years
Sharpe ratio
0.97return per unit of risk, 5 years
Worst decline ever
−83.8%Jun 2000 to Nov 2008
From its all-time high
−18.3%below the peak

SMH against the whole market

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

How does SMH rank among all ETFs?

This section ranks SMH on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history. Where the comparisons with its popular alternatives show how SMH stacks up against its peers, these rankings show where it stands in the market as a whole.

Ranked against U.S.-listed ETFs with at least $100M in assets that have enough history for each measure, so the count changes from row to row; smaller ETFs and leveraged funds are left out. Lower volatility and smaller declines rank higher.

MeasureSMHRankStanding
1-year return+57.8%41 of 2,485top 2%
3-year return+290%2 of 1,949top 1%
5-year return+323%1 of 1,560top 1%
10-year return+1,665%2 of 958top 1%
Volatility, 5 years36.9%1,503 of 1,560bottom 5%
Sharpe ratio, 5 years0.97145 of 1,560top 9%
Worst decline, past 10 years−45.3%714 of 951bottom 26%

What has beaten SMH 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). SMH sits where the dashed lines cross. Anything in the green box above and to the left earned more than SMH with smaller swings, a better trade-off over this period on both counts. Past results are no promise, but a name in the box is worth a closer look.

Annual return is the annualized total return with dividends reinvested, and volatility the annualized swing in daily prices, both over 5 years. Labeled dots are the strongest picks from the table below and the names called out above, colored by how close they sit to SMH; faint dots are 8 more of the 13 in the green region (the strongest, one per fund family). 3,633 stocks and funds worth at least $500 million were screened. Hover over a dot for its figures.

10.0%20.0%30.0%40.0%50.0%60.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%Volatility over 5 years (annualized)Annual return over 5 yearsMore return, less volatility than SMHHWM: +47.3% a year, volatility 32.5%GE: +36.0% a year, volatility 31.0%BBVA: +38.7% a year, volatility 33.3%TRGP: +41.8% a year, volatility 31.7%MLI: +38.9% a year, volatility 33.4%MOG-A: +36.6% a year, volatility 32.0%LAUR: +37.5% a year, volatility 32.8%NRP: +37.4% a year, volatility 33.9%SMH: +33.4% a year, volatility 36.9%SPY (S&P 500): +12.7% a year, volatility 17.1%DELL: +55.2% a year, volatility 54.4%STX: +57.4% a year, volatility 48.7%ASX: +48.8% a year, volatility 43.0%LLY: +40.7% a year, volatility 32.8%MCK: +38.7% a year, volatility 25.0%ESLT: +39.8% a year, volatility 34.6%ATI: +61.8% a year, volatility 42.9%PBR-A: +51.8% a year, volatility 37.5%HSBC: +33.1% a year, volatility 25.9%MPC: +51.2% a year, volatility 33.4%CAH: +42.1% a year, volatility 24.7%SMHSPY (S&P 500)DELLSTXASXLLYMCKESLTATIPBR-AHSBCMPCCAH10.0%20.0%30.0%40.0%50.0%60.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%Volatility over 5 years (annualized)Annual return over 5 yearsMore return, less volatility than SMHHWM: +47.3% a year, volatility 32.5%GE: +36.0% a year, volatility 31.0%BBVA: +38.7% a year, volatility 33.3%TRGP: +41.8% a year, volatility 31.7%MLI: +38.9% a year, volatility 33.4%MOG-A: +36.6% a year, volatility 32.0%LAUR: +37.5% a year, volatility 32.8%NRP: +37.4% a year, volatility 33.9%SMH: +33.4% a year, volatility 36.9%SPY (S&P 500): +12.7% a year, volatility 17.1%DELL: +55.2% a year, volatility 54.4%STX: +57.4% a year, volatility 48.7%ASX: +48.8% a year, volatility 43.0%LLY: +40.7% a year, volatility 32.8%MCK: +38.7% a year, volatility 25.0%ESLT: +39.8% a year, volatility 34.6%ATI: +61.8% a year, volatility 42.9%PBR-A: +51.8% a year, volatility 37.5%HSBC: +33.1% a year, volatility 25.9%MPC: +51.2% a year, volatility 33.4%CAH: +42.1% a year, volatility 24.7%SMHSPY (S&P 500)DELLSTXASXLLYMCKATIPBR-AHSBCMPCCAH
  • Same and neighboring categories, and shared themes
  • The whole market
  • Others in the green region

Is there a better investment than SMH?

Investments that beat SMH over the past 5 years on return, volatility, drawdowns, consistency, crash losses or fees, from its popular alternatives out to the whole market.

How this works

The table below lists investments that beat SMH 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, and, for funds, the same exposure at a lower expense ratio. It checks SMH's popular alternatives first, then the rest of its own and neighboring categories, then every stock and fund worth at least $500 million, and shows the strongest few in each group. The full list of those with a higher return and lower volatility than SMH follows the table.

Annual return is the annualized total return with dividends reinvested. Annual return, volatility and the Sharpe ratio cover 5 years; the worst decline covers the past 10 years. Green marks a better figure than SMH's. "On the frontier" means no other option shown or tested earned more with less volatility. Funds that hold the same thing are shown once. Beyond the popular alternatives, nothing with more than 1.5× SMH's volatility counts as better.

These figures cover the past 5 years. Green marks a better figure than SMH's.

Screen the whole market against SMH for any period in BetterThanSPYOpen these 10 in EasyCompare
InvestmentWhy it is betterPast 5 yearsDownsideLong runFit
Annual return?higher is betterVolatility?lower is calmerSharpe?return per unit of riskWorst decline?past 10 years10Y returntotalCorr. with SMH?lower diversifies moreExpenseper year
SMHVanEck Semiconductor ETF · this page
+33.4%36.9%0.97−45.3%+1,665%1.000.35%
SPYState Street SPDR S&P 500 ETF · S&P 500
+12.7%17.1%0.79−33.7%+321%0.780.09%
Same and neighboring categories, and shared themesbest 3 shownEverything else in Semiconductors and the categories next to it (Semiconductor Equipment, Computer Hardware, Communications Equipment, Software), plus SMH's specific themes. 3 of 144 passed at least one test.
DELLDell Technologies Inc. · Computer Hardware
Higher return in most periods+55.2%54.4%1.08−59.6%+3,701%0.47—
STXSeagate Technology Holdings plc · Computer Hardware
Higher return in most periods+57.4%48.7%1.18−57.0%+2,698%0.76—
ASXASE Technology Holding Co., Ltd. · Semiconductors
Higher return in most periods+48.8%43.0%1.15−52.5%+967%0.82—
The whole marketbest 6 shownEvery other stock and fund worth at least $500 million. 34 of 3,480 passed at least one test.
LLYEli Lilly and Company · Pharmaceuticals
Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periods+40.7%32.8%1.21−34.5%+1,807%0.16—
MCKMcKesson Corporation · Health Care Distribution
Higher return, lower volatilityHigher Sharpe, smaller worst decline+38.7%25.0%1.44−38.1%+586%-0.08—
ESLTElbit Systems Ltd. · Aerospace & Defense
Higher return, lower volatilityHigher Sharpe, smaller worst decline+39.8%34.6%1.15−35.4%+765%-0.07—
ATIATI Inc. · Metals & Mining
On the frontierHigher return in most periods+61.8%42.9%1.34−82.4%+929%0.23—
PBR-APetróleo Brasileiro S.A. - Petrobras · Integrated Oil & Gas
On the frontierHigher return, similar volatility+51.8%37.5%1.31−71.7%+768%0.06—
HSBCHSBC Holdings plc · Banks
Similar return, lower volatility+33.1%25.9%1.24−62.3%+319%0.26—
What these numbers mean for SMH
Annual return
SMH returned 33.4% a year over the past 5 years with dividends reinvested, against 12.7% a year for the S&P 500. At that pace, $10,000 became about $42,300. Annual return is the steady yearly rate that would produce the same total result, so investments held over the same span compare fairly. Guide: What is performance and return? →
Volatility
SMH's volatility over the past 5 years was 36.9%, 2.2 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, SMH's return lands within 36.9% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump. Guide: Understanding and measuring risk (volatility) →
Sharpe ratio
SMH's Sharpe ratio over the past 5 years was 0.97, against 0.79 for the S&P 500, so SMH 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. Guide: Balancing reward with risk (Sharpe ratio) →
Worst decline
SMH's worst fall from a peak to a low over the past 10 years was 45.3%, against 33.7% for the S&P 500. Losses and gains are not symmetric: climbing back from a 45.3% fall takes a 82.8% gain. Guide: Market crash risk and tail risk →
Correlation
Over the past 5 years, SMH's monthly returns had a correlation of 0.78 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 SMH instead: the lower it is, the more that option would diversify a SMH holding. Guide: Correlation and diversification →
Show all 13 stocks and funds worth at least $500 million that earned more than SMH with less volatility

Out of 3,633 tested over 5 years. Best first; funds that hold the same thing are listed once.

#InvestmentFound inAnnual returnVolatilitySharpeWorst decline10Y returnCorr. with SMHExpense
1
LLYEli Lilly and Company · Pharmaceuticals
Whole market+40.7%32.8%1.21−34.5%+1,807%0.16—
2
MCKMcKesson Corporation · Health Care Distribution
Whole market+38.7%25.0%1.44−38.1%+586%-0.08—
3
ESLTElbit Systems Ltd. · Aerospace & Defense
Whole market+39.8%34.6%1.15−35.4%+765%-0.07—
4
MPCMarathon Petroleum Corporation · Oil & Gas
Whole market+51.2%33.4%1.41−79.7%+1,387%0.07—
5
HWMHowmet Aerospace Inc. · Aerospace & Defense
Whole market+47.3%32.5%1.36−68.9%+1,028%0.34—
6
CAHCardinal Health, Inc. · Health Care Distribution
Whole market+42.1%24.7%1.55−46.1%+349%0.12—
7
GEGE Aerospace · Aerospace & Defense
Whole market+36.0%31.0%1.15−80.9%+139%0.50—
8
BBVABanco Bilbao Vizcaya Argentaria, S.A. · Banks
Whole market+38.7%33.3%1.16−69.6%+542%0.16—
9
TRGPTarga Resources Corp. · Oil & Gas Midstream
Whole market+41.8%31.7%1.27−90.8%+829%0.13—
10
MLIMueller Industries, Inc. · Metal Fabrication
Whole market+38.9%33.4%1.16−53.0%+800%0.42—
11
MOG-AMoog Inc. · Aerospace & Defense
Whole market+36.6%32.0%1.14−63.7%+595%0.41—
12
LAURLaureate Education, Inc. · Education Services
Whole market+37.5%32.8%1.14−64.5%—0.00—
13
NRPNatural Resource Partners L.P. · Coal
Whole market+37.4%33.9%1.11−78.8%+632%-0.08—

See everything that outperformed SMH →

SMH against its popular alternatives

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

How do SMH'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. Investments toward the upper left earned more for a smoother ride, and those toward the lower right earned less for a rougher one. The dashed lines cross at SMH, which divides the map into what did better or worse on each measure.

Green points earned more than SMH with less volatility; red points earned less with more. Hover over a point for its figures. Total returns with dividends reinvested, annualized.

15.0%20.0%25.0%30.0%35.0%40.0%45.0%−5.0%0.0%5.0%10.0%15.0%20.0%25.0%30.0%35.0%Volatility over 5 years (annualized)Annual return over 5 yearsHigher return, lower volatilityLower return, higher volatilitySMH: 33.4% a year, volatility 36.9%SPY (S&P 500): 12.7% a year, volatility 17.1%SOXX: 27.5% a year, volatility 38.9%PSI: 24.3% a year, volatility 41.6%FTXL: 27.4% a year, volatility 38.8%SOXQ: 28.3% a year, volatility 38.9%XSD: 18.3% a year, volatility 40.8%XLK: 19.4% a year, volatility 26.0%IGV: 4.4% a year, volatility 28.9%QQQ: 14.5% a year, volatility 23.0%AIQ: 14.8% a year, volatility 26.7%SRVR: −4.4% a year, volatility 20.2%SMHSPY (S&P 500)SOXXPSIFTXLXSDXLKIGVQQQAIQSRVR15.0%20.0%25.0%30.0%35.0%40.0%45.0%−10.0%0.0%10.0%20.0%30.0%40.0%Volatility over 5 years (annualized)Annual return over 5 yearsHigher return, lower volatilityLower return, higher volatilitySMH: 33.4% a year, volatility 36.9%SPY (S&P 500): 12.7% a year, volatility 17.1%SOXX: 27.5% a year, volatility 38.9%PSI: 24.3% a year, volatility 41.6%FTXL: 27.4% a year, volatility 38.8%SOXQ: 28.3% a year, volatility 38.9%XSD: 18.3% a year, volatility 40.8%XLK: 19.4% a year, volatility 26.0%IGV: 4.4% a year, volatility 28.9%QQQ: 14.5% a year, volatility 23.0%AIQ: 14.8% a year, volatility 26.7%SRVR: −4.4% a year, volatility 20.2%SMHSPY (S&P 500)SOXXPSIFTXLXSDXLKIGVAIQSRVR
All figures
InvestmentAnnual returnVolatility
SMH This pageVanEck Semiconductor ETF+33.4%36.9%
SOXQ Invesco PHLX Semiconductor ETF+28.3%38.9%
SOXX iShares Semiconductor ETF+27.5%38.9%
FTXL First Trust Nasdaq Semiconductor ETF+27.4%38.8%
PSI Invesco Semiconductors ETF+24.3%41.6%
XLK State Street Technology Select Sector SPDR ETF+19.4%26.0%
XSD State Street SPDR S&P Semiconductor ETF+18.3%40.8%
AIQ Global X - Artificial Intelligence & Technology ETF+14.8%26.7%
QQQ Invesco QQQ Trust, Series 1+14.5%23.0%
SPY S&P 500State Street SPDR S&P 500 ETF+12.7%17.1%
IGV iShares Expanded Tech-Software Sector ETF+4.4%28.9%
SRVR Pacer Data & Infrastructure Real Estate ETF−4.4%20.2%
Open these 12 in EasyCompare

Has SMH consistently beaten its popular alternatives?

This section compares SMH with the investments people most often weigh against it, checking each one over eight periods from one month to ten years. Counting how often an alternative earned more than SMH helps separate lasting outperformance from a single strong stretch.

A green cell means the alternative earned more than SMH over that period. "Qualified" marks those that did so in at least 3 of 5 short-term periods and 2 of 3 long-term periods.

InvestmentPeriods outperformed Short termLong termRisk · 5 yearsFund
1M3M6MYTD1Y3Y5Y10YVolatilitylower is calmerSharpehigher is betterWorst declinepast 10 yearsExpenseAssetsOverlapsame sectors
SMH VanEck Semiconductor ETF (this page)—−8.3%−2.2%+17.8%+46.4%+57.8%+290%+323%+1,665%36.9%0.97−45.3%0.35%$66B—
SOXX Broad MarketiShares Semiconductor ETF3/5 short0/3 long−10.6%−4.5%+19.9%+59.7%+71.2%+234%+237%+1,392%38.9%0.82−45.8%0.33%$39B—
XLK TechnologyState Street Technology Select Sector SPDR ETF3/5 short0/3 long−4.8%+5.7%+20.3%+29.0%+29.3%+131%+143%+767%26.0%0.82−33.6%0.08%$125B100%
IGV Broad MarketiShares Expanded Tech-Software Sector ETF3/5 short0/3 long−0.2%+15.0%+23.9%+4.2%−6.1%+57.9%+24.0%+383%28.9%0.29−45.9%0.38%$15B—
PSI TechnologyInvesco Semiconductors ETF2/5 short0/3 long−12.9%−12.1%+3.7%+52.3%+68.1%+217%+196%+1,134%41.6%0.73−44.9%0.55%$2.8B100%
FTXL TechnologyFirst Trust Nasdaq Semiconductor ETF2/5 short0/3 long−9.6%−1.9%+18.2%+64.8%+85.1%+249%+235%+1,077%38.8%0.82−43.9%0.60%$1.2B100%
QQQ Broad MarketInvesco QQQ Trust, Series 12/5 short0/3 long−3.2%+3.2%+11.2%+17.4%+17.9%+106%+97.2%+553%23.0%0.71−35.1%0.18%$492B59%
AIQ TechnologyGlobal X - Artificial Intelligence & Technology ETF2/5 short0/3 long−4.7%+6.8%+17.2%+22.8%+23.3%+141%+99.6%—26.7%0.65−44.6%0.68%$10B71%
SOXQ TechnologyInvesco PHLX Semiconductor ETF2/5 short0/3 long−9.3%−3.9%+17.7%+53.5%+64.5%+246%+248%—38.9%0.84−46.0%0.19%$2.9B100%
SRVR Real EstatePacer Data & Infrastructure Real Estate ETF1/5 short0/3 long−7.1%−5.7%−18.7%−0.6%−7.7%+24.4%−20.3%—20.2%-0.13−41.0%0.49%$292M6%
XSD TechnologyState Street SPDR S&P Semiconductor ETF0/5 short0/3 long−10.0%−5.8%+11.5%+40.9%+35.0%+166%+132%+857%40.8%0.62−42.3%0.35%$2.7B97%
SHOC TechnologyStrive U.S. Semiconductor ETF0/5 short0/3 long−9.5%−3.7%+12.3%+40.7%+50.8%+222%————−37.5%0.40%$218M100%
Open these 12 in EasyCompare

How did SMH do year by year?

This table shows each investment's total return in every full calendar year since 2001, along with where SMH ranked among its popular alternatives each year. Annual results reveal how consistently each one kept pace with SMH and how far its good and bad years diverged, detail that multiyear averages tend to smooth over.

Newest year first. Green marks a year in which the fund came out ahead of SMH; gray means the two finished within a fraction of a point. The rank row places SMH among the alternatives that traded the full year; dark green is the top quarter and red the bottom quarter.

InvestmentYears ahead of SMH2025202420232022202120202019201820172016201520142013201220112010200920082007200620052004200320022001
SMH This pageVanEck Semiconductor ETF—+49.2%+39.1%+73.4%−33.5%+42.1%+55.5%+64.5%−9.1%+38.5%+35.6%−0.3%+30.2%+33.4%+8.6%+6.8%+19.0%+60.5%−44.7%+6.0%−6.7%+10.8%−19.3%+87.3%−47.0%−14.6%
Rank among alternativesTop quarter in 8 of 242 of 121 of 121 of 125 of 114 of 103 of 102 of 106 of 84 of 83 of 75 of 73 of 74 of 74 of 71 of 74 of 73 of 74 of 74 of 76 of 62 of 55 of 51 of 54 of 5—
SPY S&P 500State Street SPDR S&P 500 ETF9 of 25+17.7%+24.9%+26.2%−18.2%+28.7%+18.3%+31.2%−4.6%+21.7%+12.0%+1.2%+13.5%+32.3%+16.0%+1.9%+15.1%+26.4%−36.8%+5.1%+15.9%+4.8%+10.7%+28.2%−21.6%−11.7%
SOXX iShares Semiconductor ETF9 of 24+40.7%+12.9%+67.1%−35.1%+44.1%+52.7%+62.4%−6.5%+39.8%+38.3%−2.0%+29.8%+41.6%+6.6%−10.6%+14.3%+74.8%−51.7%−2.2%+0.2%+13.4%−14.3%+81.0%−47.9%—
XLK State Street Technology Select Sector SPDR ETF9 of 25+24.6%+21.6%+56.0%−27.7%+34.8%+43.6%+49.9%−1.7%+34.3%+15.0%+5.5%+17.9%+26.2%+15.4%+2.5%+11.5%+51.1%−41.5%+15.5%+12.2%−0.4%+5.6%+38.7%−38.2%−23.4%
IGV iShares Expanded Tech-Software Sector ETF10 of 24+5.6%+23.4%+58.6%−35.7%+12.3%+52.9%+34.3%+12.5%+42.1%+5.8%+12.2%+13.4%+30.6%+16.9%−7.3%+24.6%+47.6%−38.5%+15.7%+10.8%−5.5%+13.8%+50.3%−44.8%—
PSI Invesco Semiconductors ETF6 of 20+36.3%+17.2%+49.0%−34.4%+46.5%+56.8%+52.5%−11.5%+40.2%+44.1%−0.9%+37.5%+31.9%+4.4%−14.5%+20.9%+47.0%−46.3%+0.4%+4.6%—————
FTXL First Trust Nasdaq Semiconductor ETF0 of 9+48.9%+7.6%+54.4%−33.9%+36.0%+46.0%+61.8%−14.5%+32.2%————————————————
QQQ Invesco QQQ Trust, Series 110 of 25+20.8%+25.6%+54.9%−32.6%+27.4%+48.6%+39.0%−0.1%+32.7%+7.1%+9.4%+19.2%+36.6%+18.1%+3.4%+19.9%+54.7%−41.7%+19.0%+7.2%+1.6%+10.5%+49.7%−37.4%−33.4%
AIQ Global X - Artificial Intelligence & Technology ETF0 of 7+31.9%+24.1%+55.4%−36.5%+17.1%+52.9%+39.9%——————————————————
SOXQ Invesco PHLX Semiconductor ETF0 of 4+43.1%+20.2%+66.8%−35.6%—————————————————————
SRVR Pacer Data & Infrastructure Real Estate ETF1 of 7−2.0%+2.6%+6.9%−31.9%+22.3%+11.9%+42.0%——————————————————
XSD State Street SPDR S&P Semiconductor ETF6 of 19+29.8%+10.8%+34.9%−30.9%+42.5%+62.0%+64.7%−6.3%+25.2%+29.4%+10.2%+31.1%+36.4%+2.4%−18.1%+15.7%+99.0%−47.7%−5.2%——————
SHOC Strive U.S. Semiconductor ETF0 of 3+49.9%+16.7%+62.0%——————————————————————
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Risk and diversification

How SMH 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 SMH's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high. This section presents SMH's five deepest drawdowns since it began trading in 2000, alongside the S&P 500's return over the same dates, and how long each took to recover. Together, these figures show how much an investor could have lost and how long it took to get back to even.

Green means SMH fell less than the S&P 500 over the same dates. Based on daily closing prices with dividends reinvested.

DuringSMH fellS&P 500, same datesPeakLowTime to the lowBack at the peakTime to recover
Dot-com bust−83.8%−41.4%Jun 2000Nov 20088.4 yearsNov 20168 years
2022 bear market−45.3%−24.2%Dec 2021Oct 202210 monthsJul 20239 months
No named crash−35.7%−10.7%Jul 2024Apr 20259 monthsJul 20253 months
Covid crash−33.6%−32.0%Feb 2020Mar 20201 monthJun 20203 months
Late-2018 sell-off−27.0%−14.3%Mar 2018Dec 20189 monthsApr 20194 months

How did SMH do in stock market crashes?

This section measures how far SMH, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000. A smaller decline means an investment held up better, and comparing results across crashes shows whether that resilience was consistent or a one-off.

Note: SMH began trading on May 5, 2000, so its row reads "Not yet trading" for the dot-com bust. The older alternatives and the S&P 500 show how those crashes played out.

Newest crash first. Each figure is the fund's deepest fall within the crash window; green means a smaller fall than SMH.

InvestmentHeld up better2023 regional bank crisisMar 20232022 bear marketJan 2022Covid crashFeb 2020Late-2018 sell-offSep 2018February 2018 volatility shockFeb 20182015 China and oil sell-offAug 20152011 euro debt crisisJul 20112010 flash crashMay 20102008 financial crisisOct 2007Dot-com bustMar 2000
SMH This pageVanEck Semiconductor ETF—−3.6%−44.1%−33.6%−23.5%−7.4%−17.9%−18.6%−1.5%−59.2%Not yet trading
SPY S&P 500State Street SPDR S&P 500 ETF6 of 9−3.4%−24.5%−33.7%−19.3%−6.5%−12.8%−17.9%−1.5%−55.2%−47.5%
SOXX iShares Semiconductor ETF1 of 9−3.9%−44.6%−34.3%−22.8%−7.4%−18.9%−19.8%−1.2%−65.7%—
XLK State Street Technology Select Sector SPDR ETF6 of 9−3.2%−32.4%−31.1%−23.8%−6.7%−12.7%−15.9%−2.1%−53.0%−82.0%
IGV iShares Expanded Tech-Software Sector ETF5 of 9−4.9%−36.3%−30.3%−22.2%−6.2%−21.5%−22.4%−2.5%−49.8%—
PSI Invesco Semiconductors ETF1 of 9−4.2%−43.4%−36.6%−23.9%−8.2%−20.5%−30.2%−2.4%−59.2%—
FTXL First Trust Nasdaq Semiconductor ETF1 of 5−3.6%−42.7%−34.8%−23.4%−8.2%—————
QQQ Invesco QQQ Trust, Series 17 of 9−3.1%−33.4%−28.6%−22.7%−6.8%−16.1%−16.1%−2.5%−53.4%−83.0%
AIQ Global X - Artificial Intelligence & Technology ETF3 of 4−4.0%−40.6%−31.9%−23.0%——————
SOXQ Invesco PHLX Semiconductor ETF0 of 2−4.1%−44.7%————————
SRVR Pacer Data & Infrastructure Real Estate ETF4 of 4−2.5%−36.3%−32.9%−16.0%——————
XSD State Street SPDR S&P Semiconductor ETF2 of 9−4.8%−40.6%−35.9%−22.2%−8.1%−18.6%−27.5%−1.1%−63.5%—
SHOC Strive U.S. Semiconductor ETF0 of 1−3.9%—————————
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How closely does SMH 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. An investment that captures more of the gains than the losses has compounded ahead of the market over time. This section compares SMH with its popular alternatives on both measures, and on beta (how strongly each has moved with the market), over the past 10 years.

Monthly total returns over the past 10 years, measured against SPY. 100% capture or a beta of 1.00 means moving in line with the S&P 500. Green marks a better figure than SMH's: more upside, less downside or a higher capture ratio. Sorted by capture ratio.

InvestmentUpside captureDownside captureCapture ratioBeta
SMH This pageVanEck Semiconductor ETF159%108%1.471.46
SOXX iShares Semiconductor ETF156%112%1.391.50
PSI Invesco Semiconductors ETF150%110%1.361.54
FTXL First Trust Nasdaq Semiconductor ETF146%108%1.341.47
XLK State Street Technology Select Sector SPDR ETF128%100%1.281.19
QQQ Invesco QQQ Trust, Series 1118%102%1.161.13
XSD State Street SPDR S&P Semiconductor ETF151%133%1.131.65
IGV iShares Expanded Tech-Software Sector ETF112%114%0.991.10
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What diversifies SMH?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions). This section lists large ETFs and stocks whose returns have had a low correlation with SMH's. Because such investments tend not to fall at the same time, pairing SMH with them can reduce a portfolio's overall swings.

Only ETFs with at least $1.0B in assets and stocks worth at least $10B, with a correlation below 0.5 over the past 5 years and a positive return, are included, ranked by Sharpe ratio; funds that hold the same thing are shown once. The year columns are the years in which SMH lost money. The last two columns show a portfolio that is 80% SMH and 20% the other investment, rebalanced monthly.

ETFs

InvestmentCorrelation5Y returnSharpe2022201820152008200620042002200180/20 mix volatility80/20 mix annual return
SMH VanEck Semiconductor ETF (this page)1.00+323%0.97−33.5%−9.1%−0.3%−44.7%−6.7%−19.3%−47.0%−14.6%34.7%+37.4%
LVHI InternationalFranklin International Low Volatility High Dividend Index ETF0.27+119%1.48+3.8%−5.2%——————28.3%+34.2%
DXJ InternationalWisdomTree Japan Hedged Equity Fund0.47+225%1.34+6.0%−19.8%+7.7%−20.8%————29.1%+36.2%
EMLP Broad MarketFirst Trust North American Energy Infrastructure Fund0.26+101%1.04+10.4%−8.7%−25.3%—————28.7%+33.8%
EWP Broad MarketiShares MSCI Spain ETF0.34+140%0.97−5.2%−15.3%−15.6%−36.8%+49.2%+30.2%−13.6%−9.2%29.3%+35.0%
GLD CommoditiesSPDR Gold Shares0.07+126%0.96−0.8%−1.9%−10.7%+4.9%+22.6%———28.2%+34.8%
XLE EnergyState Street Energy Select Sector SPDR ETF-0.02+177%0.93+64.4%−18.2%−21.5%−39.0%+18.0%+33.8%−14.8%−18.2%28.2%+36.3%
AMLP EnergyAlerian MLP ETF0.12+111%0.89+25.5%−12.6%−25.7%—————28.5%+34.7%
EFV InternationaliShares MSCI EAFE Value ETF0.39+89.0%0.88−5.2%−14.7%−5.9%−41.7%+30.3%———29.1%+33.5%

Stocks

InvestmentCorrelation5Y returnSharpe2022201820152008200620042002200180/20 mix volatility80/20 mix annual return
SMH VanEck Semiconductor ETF (this page)1.00+323%0.97−33.5%−9.1%−0.3%−44.7%−6.7%−19.3%−47.0%−14.6%34.7%+37.4%
CAH Medical - DistributionCardinal Health, Inc.0.12+479%1.55+54.1%−24.5%+12.6%−39.6%−5.8%−4.7%−8.3%−2.5%28.9%+39.2%
MCK Medical - DistributionMcKesson Corporation-0.08+413%1.44+51.8%−28.4%−4.5%−40.4%−1.2%−1.4%−27.2%+4.9%27.8%+38.8%
MPC Oil & Gas Refining & MarketingMarathon Petroleum Corporation0.07+690%1.41+86.6%−8.2%+17.4%—————29.0%+41.7%
HWM Aerospace & DefenseHowmet Aerospace Inc.0.34+594%1.36+24.2%−37.5%−36.3%−67.4%+5.5%−14.1%−33.1%+9.8%30.8%+41.3%
ATI Manufacturing - Metal FabricationATI Inc.0.23+1,008%1.34+87.5%−9.8%−66.7%−70.0%+153%+66.5%−60.8%+10.3%31.4%+44.8%
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Common questions

What was SMH's worst drawdown?

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

What were SMH's best and worst years?

Over 25 full calendar years, SMH's best year was 2003, when it returned 87.3%. Its worst was 2002, with a return of -47.0%.

Is there a better investment than SMH?

Looking beyond its popular alternatives, DELL (computer hardware) and STX (computer hardware) were ahead of SMH in most short and long periods, though with much bigger swings (54.4% and 48.7% volatility against 36.9%). Few investments have done better on both counts: only 13 of the 3,633 stocks and funds worth at least $500 million earned more than SMH with less volatility over the past 5 years, among them LLY, GE and BBVA.

Is SMH more volatile than the S&P 500?

Yes. SMH's volatility over the past 5 years was 36.9%, 2.2 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, SMH's return lands within 36.9% 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 SMH's Sharpe ratio?

SMH's Sharpe ratio over the past 5 years was 0.97, against 0.79 for the S&P 500, so SMH 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 SMH with the S&P 500?

Over the past 5 years, SMH's monthly returns had a correlation of 0.78 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 SMH instead: the lower it is, the more that option would diversify a SMH holding.

What are the best alternatives to SMH?

None of the 11 popular alternatives we compared outperformed SMH in at least 3 of 5 short-term and 2 of 3 long-term timeframes, which says more about SMH's strength than about its alternatives.

Did SMH outperform the S&P 500?

SMH finished ahead of the S&P 500 (SPY) in 16 of 25 full calendar years. In 2025, it returned +49.2%, against +17.7% for the index.

How did SMH do in stock market crashes?

SMH fell less than the S&P 500 (SPY) in none of the nine major crashes it has traded through, and further in six. The clearest case was the 2022 bear market, when SMH fell 44.1% and the S&P 500 fell 24.5%.

What diversifies SMH?

These had a low correlation with SMH over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.27), DXJ (correlation 0.47) and EMLP (correlation 0.26); among large stocks, CAH (correlation 0.12), MCK (correlation -0.08) and MPC (correlation 0.07). A correlation near zero means the two have moved largely independently.

How we measure

More research

Popular alternatives to SMH

Other stocks and ETFs