# How STMicroelectronics (STM) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/stm
> 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 STM alone. It places STM (STMicroelectronics N.V.) 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 STM stands in the market, and of the alternatives worth a closer look.

Period covered: STM's full trading record, from December 1994 through September 2026. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** STM has gone against the market, falling 25.8% over the past 3 months while the S&P 500 rose 3.9%. STM is 42.5% below its high, bear-market territory, while the S&P 500 sits 1.3% below a record.
- **Stock or market?:** The weakness is STM's own: it fell 25.8% over the past 3 months while the semiconductors ETF SMH (VanEck Semiconductor ETF) 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 POWI (Power Integrations) fell 33.7%.
- **Past 1 to 3 years:** Over the past year, STM rose 52.9% against 15.8% for the S&P 500 and 17.9% for the Nasdaq 100. On the flip side, the long record (ahead of 87% of the stocks worth at least $300 million over 10 years) has not carried into the past 3 years (behind 68% of them).
- **Long term:** STM turned $10,000 into $62,500 over the past decade, against $42,100 in the S&P 500. On the flip side, the past 5 years only trailed the S&P 500 (11.6% against 81.7%), after a much stronger decade (525% against 321%).
- **In a crash:** Across seven sell-offs, STM has typically fallen 1.8 times as far as the S&P 500.
- **Diversification:** Against the S&P 500, STM has a correlation of 0.59 over 5 years, more closely than 89% of stocks worth at least $300 million. Next to an index fund it is some diversification, but not a hedge. Over 10 years, STM's beta versus the S&P 500 was 1.72: in the S&P 500's rising months it gained 1.2 times as much as the index, and in falling months it lost 1.0 times as much.
- **Better options**
  - **Nearby categories and themes:** MSFT (Microsoft, software) and ASX (ASE Technology Holding, semiconductors) earned more than STM with less volatility over the past 5 years. MSFT returned 12.5% a year at 28.2% volatility, against 2.2% a year at 47.7%.
  - **Whole market:** 1,756 of the 3,633 stocks and funds worth at least $500 million earned more than STM with less volatility over the past 5 years, among them AAPL (Apple), GOOG (Alphabet) and MSFT (Microsoft).

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

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

- $10,000 invested in STM at the end of September 1997 would have grown to $56,167 by September 2026, less than the $132,907 it would have become in SPY, an S&P 500 fund.
- Seven of the eight other investments on the chart ended ahead of STM, and ASML finished highest, at $984,088.

## STM 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.

- STM is still 42.5% below its all-time high.
- STM's deepest decline since it began trading in 1994 was 94.3%, from March 2000 to March 2009. It took about 12 years from the low to climb back to its old high.
- Over 29 full calendar years, STM's best was 1999, when it returned 288%, and its worst was 2008, when it lost 52.3%. It lost money in 14 of those years.

- Type: Stock, Technology (Semiconductors)
- Trading since: December 8, 1994
- Market value: $41B
- Volatility (5 years): 47.7%; Sharpe ratio: 0.28
- Worst decline ever: −94.3%, from March 9, 2000 to March 9, 2009; back at its high by September 14, 2021

| Period | STM total return |
| --- | --- |
| 1 month | −11.2% |
| 3 months | −25.8% |
| 6 months | +3.3% |
| year to date | +68.2% |
| 1 year | +52.9% |
| 3 years | +18.8% |
| 5 years | +11.6% |
| 10 years | +525% |

## STM against the whole market

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

### How does STM rank among all stocks?

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

- STM's 10-year return ranks in the top 13% of the 2,202 stocks worth at least $300 million with 10 years of history.

| Measure | STM | Rank |
| --- | --- | --- |
| 1-year return | +52.9% | 516 of 3,287 (top 16%) |
| 3-year return | +18.8% | 2,040 of 3,017 (top 68%) |
| 5-year return | +11.6% | 1,571 of 2,893 (top 55%) |
| 10-year return | +525% | 286 of 2,202 (top 13%) |
| Volatility, 5 years | 47.7% | 1,830 of 2,893 (top 64%) |
| Sharpe ratio, 5 years | 0.28 | 1,599 of 2,893 (top 56%) |
| Worst decline, past 10 years | −66.6% | 1,170 of 2,187 (top 54%) |

### What has beaten STM 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).

- 996 stocks and 760 ETFs worth at least $500 million sit in the green region: each earned more than STM over the past 5 years with smaller price swings. That is 48% of the 3,633 screened.
- Among those with at least half STM's swings, CAH has the best return for its risk: 42.1% a year at 24.7% volatility, 48% less than STM's 47.7%, and a Sharpe ratio (return above cash per unit of volatility) of 1.55 against 0.28 for STM. ATI earned the most, 61.8% a year, while still swinging less than STM (42.9% against 47.7%).
- Among STM's popular alternatives, TSM, ADI and UMC are in the region. TSM earned 31.5% a year against 2.2% a year for STM, at 38.5% volatility, 19% less than STM's 47.7%.

### Is there a better investment than STM?

The table below lists investments that beat STM 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 STM's popular alternatives, ADI, TSM and ASML earned more than STM with less volatility over the past 5 years. ADI returned 19.5% a year at 34.1% volatility, against 2.2% a year at 47.7%.
- Looking beyond its popular alternatives, MSFT (software) and ASX (semiconductors) earned more than STM with less volatility over the past 5 years. MSFT returned 12.5% a year at 28.2% volatility, against 2.2% a year at 47.7%.
- Across the whole market, 1,756 of the 3,633 stocks and funds worth at least $500 million earned more than STM with less volatility over the past 5 years, among them AAPL, GOOG and MSFT.

The 15 strongest of 1,756 investments that beat STM 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 STM | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| STM: STMicroelectronics N.V. (this page) |  | +2.2% | 47.7% | 0.28 | −66.6% | +525% |  |  |
| [LLY](https://easycompare.io/research/lly): Eli Lilly and Company | Pharmaceuticals | +40.7% | 32.8% | 1.21 | −34.5% | +1,807% | 0.04 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [JPM](https://easycompare.io/research/jpm): JPMorgan Chase & Co. | Banks | +17.3% | 24.3% | 0.78 | −43.6% | +537% | 0.28 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [ABBV](https://easycompare.io/research/abbv): AbbVie Inc. | Pharmaceuticals | +26.1% | 23.4% | 1.11 | −45.1% | +603% | 0.04 | 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% | 0.67 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [MA](https://easycompare.io/research/ma): Mastercard Incorporated | Payment Processing | +12.4% | 23.8% | 0.61 | −41.0% | +541% | 0.16 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [APH](https://easycompare.io/research/aph): Amphenol Corporation | Electronic Components | +33.8% | 32.2% | 1.07 | −37.5% | +965% | 0.51 | 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% | 0.67 | 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% | 0.07 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [GLW](https://easycompare.io/research/glw): Corning Inc | Electronic Components | +31.4% | 42.1% | 0.86 | −51.5% | +616% | 0.52 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [DE](https://easycompare.io/research/de): Deere & Company | Industrial Machinery | +14.4% | 29.9% | 0.60 | −37.9% | +755% | 0.29 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [GWW](https://easycompare.io/research/gww): W.W. Grainger, Inc. | Industrial Distribution | +26.3% | 24.9% | 1.07 | −41.6% | +654% | 0.32 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [CTAS](https://easycompare.io/research/ctas): Cintas Corporation | Business Services | +16.5% | 23.1% | 0.78 | −48.4% | +808% | 0.13 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [RY](https://easycompare.io/research/ry): Royal Bank of Canada | Banks | +17.3% | 18.2% | 0.97 | −40.0% | +352% | 0.50 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [FAST](https://easycompare.io/research/fast): Fastenal Company | Industrial Distribution | +15.8% | 24.6% | 0.72 | −30.7% | +576% | 0.21 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [MSFT](https://easycompare.io/research/msft): Microsoft Corporation | Software | +12.5% | 28.2% | 0.56 | −37.1% | +946% | 0.23 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |

## STM against its popular alternatives

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

### How do STM'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.

- 11 of the 21 popular alternatives, led by MTSI, TSM and AMAT, were both more rewarding and calmer than STM over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, STM returned 2.2% a year, less than the S&P 500's 12.7%, with higher volatility (47.7% against 17.1%).

### Has STM consistently beaten its popular alternatives?

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

- Nine of the 22 popular alternatives, led by ASML, UMC and ADI, outperformed STM in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- ASML, UMC and ADI outperformed STM in every long-term period and in all but one short-term period, the most consistent record in the group.
- TSM, AMAT and ADI earned more for the risk they took than STM (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 STM | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| STM: STMicroelectronics N.V. (this page) | +52.9% | +18.8% | +11.6% | +525% |  |  | 0.28 |
| [ASML](https://easycompare.io/research/asml): ASML Holding N.V. | +57.5% | +188% | +123% | +1,628% | 4/5 short-term, 3/3 long-term | all-weather | 0.59 |
| [UMC](https://easycompare.io/research/umc): United Microelectronics Corporation | +166% | +202% | +147% | +1,610% | 4/5 short-term, 3/3 long-term | all-weather | 0.63 |
| [ADI](https://easycompare.io/research/adi): Analog Devices, Inc. | +63.3% | +150% | +144% | +652% | 4/5 short-term, 3/3 long-term | all-weather | 0.69 |
| [TSM](https://easycompare.io/research/tsm): Taiwan Semiconductor Manufacturing Company Limited | +44.3% | +382% | +293% | +1,505% | 3/5 short-term, 3/3 long-term | consistent | 0.91 |
| MTSI: MACOM Technology Solutions Holdings, Inc. | +87.4% | +249% | +302% | +588% | 3/5 short-term, 3/3 long-term | consistent | 0.83 |
| [TXN](https://easycompare.io/research/txn): Texas Instruments Incorporated | +58.7% | +105% | +60.5% | +424% | 4/5 short-term, 2/3 long-term | consistent | 0.45 |
| VSH: Vishay Intertechnology, Inc. | +66.1% | +32.0% | +62.9% | +146% | 4/5 short-term, 2/3 long-term | consistent | 0.44 |
| SLAB: Silicon Laboratories Inc. | +60.8% | +115% | +47.7% | +277% | 3/5 short-term, 2/3 long-term | consistent | 0.39 |
| [NXPI](https://easycompare.io/research/nxpi): NXP Semiconductors N.V. | +10.0% | +34.9% | +31.9% | +159% | 3/5 short-term, 2/3 long-term | consistent | 0.34 |
| [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 |
| [AMAT](https://easycompare.io/research/amat): Applied Materials, Inc. | +78.5% | +209% | +215% | +1,488% | 2/5 short-term, 3/3 long-term |  | 0.72 |
| ON: ON Semiconductor Corporation | +37.8% | −10.9% | +66.0% | +540% | 2/5 short-term, 2/3 long-term |  | 0.46 |
| [TEL](https://easycompare.io/research/tel): TE Connectivity plc | −4.1% | +90.6% | +57.4% | +311% | 2/5 short-term, 2/3 long-term |  | 0.46 |
| 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% | 4/5 short-term, 1/3 long-term |  | 0.12 |
| [MCHP](https://easycompare.io/research/mchp): Microchip Technology Incorporated | +16.0% | +8.5% | +13.0% | +207% | 2/5 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 |
| DIOD: Diodes Incorporated | +49.4% | +14.1% | −5.6% | +324% | 2/5 short-term, 0/3 long-term |  | 0.23 |
| APTV: Aptiv PLC | −46.0% | −51.0% | −73.3% | −10.6% | 2/5 short-term, 0/3 long-term |  | -0.43 |
| 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 |
| ALGM: Allegro MicroSystems, Inc. | +11.2% | +17.5% | +5.5% | — | 1/5 short-term, 0/3 long-term |  | 0.28 |

### How did STM do year by year?

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

- Among its popular alternatives, ALGM came out ahead of STM most often, in four of the five years both traded.
- Ranked against its popular alternatives each year, STM finished in the top quarter in six of 29 years and in the bottom quarter in ten. In 2025, it ranked 14 of 23.
- STM finished ahead of the S&P 500 in 11 of its 29 full calendar years, and behind it in each of the last two.

| Year | STM | SPY |
| --- | --- | --- |
| 2025 | +5.3% | +17.7% |
| 2024 | −49.6% | +24.9% |
| 2023 | +41.6% | +26.2% |
| 2022 | −26.8% | −18.2% |
| 2021 | +32.4% | +28.7% |
| 2020 | +38.9% | +18.3% |
| 2019 | +96.4% | +31.2% |
| 2018 | −35.7% | −4.6% |
| 2017 | +95.1% | +21.7% |
| 2016 | +76.9% | +12.0% |

## Risk and diversification

How STM 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 STM's worst declines?

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

- In all five of STM's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: STM fell 66.6% from July 2023 to April 2025, while the S&P 500 rose 12.3%.
- The slowest recovery came after STM fell 94.3% from March 2000 to March 2009; it did not regain that peak until September 2021, 12 years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −94.3% | March 9, 2000 | March 9, 2009 | September 14, 2021 | −43.7% | dot-com bust |
| −66.6% | July 27, 2023 | April 8, 2025 | April 29, 2026 | +12.3% |  |
| −61.2% | August 25, 1997 | October 5, 1998 | January 28, 1999 | +8.9% |  |
| −49.1% | August 18, 1995 | December 18, 1995 | October 18, 1996 | +9.2% |  |
| −43.0% | November 18, 2021 | July 5, 2022 | March 30, 2023 | −17.8% | 2022 bear market |

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

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

- STM 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 STM fell 83.5% and the S&P 500 fell 47.5%.
- Among its popular alternatives, ADI held up best, falling less than STM in all ten crashes they both traded through.

| Crash | Dates | STM fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | −83.5% | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −77.2% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −3.2% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −36.9% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −31.6% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −9.1% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −31.0% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −49.6% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −40.6% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −3.2% | −3.4% |

### How closely does STM 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.

- Over the past 10 years, STM captured 122% of the S&P 500's gains in rising months and 104% of its losses in falling months, with a beta of 1.72. It amplified the market's moves in both directions.
- UMC took just 52% of the S&P 500's losses, against 104% for STM, while still keeping 133% of its gains.
- Six of the 19 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than STM's 1.17, led by UMC, TSM and AMAT.

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

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| STM: STMicroelectronics N.V. (this page) | 122% | 104% | 1.72 |
| [ASML](https://easycompare.io/research/asml): ASML Holding N.V. | 170% | 132% | 1.44 |
| [UMC](https://easycompare.io/research/umc): United Microelectronics Corporation | 133% | 52.0% | 1.33 |
| [ADI](https://easycompare.io/research/adi): Analog Devices, Inc. | 117% | 92.0% | 1.20 |
| [TSM](https://easycompare.io/research/tsm): Taiwan Semiconductor Manufacturing Company Limited | 138% | 75.0% | 1.15 |
| MTSI: MACOM Technology Solutions Holdings, Inc. | 148% | 157% | 1.93 |
| [TXN](https://easycompare.io/research/txn): Texas Instruments Incorporated | 113% | 108% | 1.18 |
| VSH: Vishay Intertechnology, Inc. | 118% | 160% | 1.61 |
| SLAB: Silicon Laboratories Inc. | 113% | 130% | 1.18 |
| [NXPI](https://easycompare.io/research/nxpi): NXP Semiconductors N.V. | 115% | 157% | 1.63 |
| [MPWR](https://easycompare.io/research/mpwr): Monolithic Power Systems, Inc. | 156% | 107% | 1.31 |
| [AMAT](https://easycompare.io/research/amat): Applied Materials, Inc. | 152% | 97.0% | 1.51 |
| ON: ON Semiconductor Corporation | 161% | 185% | 1.95 |
| [TEL](https://easycompare.io/research/tel): TE Connectivity plc | 109% | 120% | 1.26 |
| SYNA: Synaptics Incorporated | 117% | 188% | 1.64 |
| [MCHP](https://easycompare.io/research/mchp): Microchip Technology Incorporated | 127% | 170% | 1.72 |
| SWKS: Skyworks Solutions, Inc. | 88.0% | 149% | 1.31 |
| DIOD: Diodes Incorporated | 128% | 146% | 1.53 |
| APTV: Aptiv PLC | 106% | 219% | 1.80 |
| POWI: Power Integrations, Inc. | 89.0% | 133% | 1.28 |

### What diversifies STM?

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 STM into MCK would have cut the portfolio's volatility by 21% over the past 5 years and raised its annual return (+5.0% for STM alone, +13.3% for the mix).
- Among large ETFs, LVHI, DXJ and EMLP have moved largely independently of STM 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 nine of the 14 calendar years in which STM lost money.

| Investment | Correlation with STM | 5Y return | Volatility | Sharpe | Rose in STM's 14 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | 0.30 | +119% | 11.1% | 1.48 | 2 of 14 |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.34 | +225% | 19.1% | 1.34 | 4 of 14 |
| EMLP: First Trust North American Energy Infrastructure Fund | 0.26 | +101% | 14.5% | 1.04 | 3 of 14 |
| HDV: iShares Core High Dividend ETF | 0.23 | +83.3% | 13.0% | 1.00 | 3 of 14 |
| FTLS: First Trust Long/Short Equity ETF | 0.44 | +62.9% | 10.4% | 0.99 | 2 of 14 |
| EWP: iShares MSCI Spain ETF | 0.43 | +140% | 20.3% | 0.97 | 5 of 14 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | -0.01 | +126% | 18.9% | 0.96 | 5 of 14 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.06 | +177% | 25.5% | 0.93 | 7 of 14 |

## Common questions

### What was STM's worst drawdown?

STM's deepest decline since it began trading in 1994 was 94.3%, from March 2000 to March 2009. It took about 12 years from the low to climb back to its old high.

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

Over 29 full calendar years, STM's best year was 1999, when it returned 288%. Its worst was 2008, with a return of -52.3%.

### Is there a better investment than STM?

Among STM's popular alternatives, ADI, TSM and ASML earned more than STM with less volatility over the past 5 years. ADI returned 19.5% a year at 34.1% volatility, against 2.2% a year at 47.7%. Looking beyond its popular alternatives, MSFT (software) and ASX (semiconductors) earned more than STM with less volatility over the past 5 years. MSFT returned 12.5% a year at 28.2% volatility, against 2.2% a year at 47.7%.

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

Yes. STM's volatility over the past 5 years was 47.7%, 2.8 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, STM's return lands within 47.7% 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 STM's Sharpe ratio?

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

Over the past 5 years, STM's monthly returns had a correlation of 0.59 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 STM instead: the lower it is, the more that option would diversify a STM holding.

### What are the best alternatives to STM?

Of the 22 popular alternatives we compared, nine outperformed STM in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: ASML, UMC and ADI.

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

STM finished ahead of the S&P 500 (SPY) in 11 of 29 full calendar years. In 2025, it returned +5.3%, against +17.7% for the index.

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

STM 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 STM fell 83.5% and the S&P 500 fell 47.5%.

### What diversifies STM?

These had a low correlation with STM over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.30), DXJ (correlation 0.34) and EMLP (correlation 0.26); among large stocks, CAH (correlation 0.04), CLS (correlation 0.31) and FIX (correlation 0.36). 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/stm
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against STM live: https://betterthanspy.com/?b=STM&utm_source=easycompare&utm_medium=research