^SOX vs. SMH
^SOX (PHLX Semiconductor Index) is an index, while SMH (VanEck Semiconductor ETF) is Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Over the past 10 years, ^SOX returned 33.59%/yr vs 36.76%/yr for SMH. With a 0.97 correlation, they move nearly in lockstep.
Performance
^SOX vs. SMH - Performance Comparison
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Returns By Period
In the year-to-date period, ^SOX achieves a 78.70% return, which is significantly higher than SMH's 64.11% return. Over the past 10 years, ^SOX has underperformed SMH with an annualized return of 33.59%, while SMH has yielded a comparatively higher 36.76% annualized return.
^SOX
- 1D
- -1.93%
- 1M
- 7.49%
- YTD
- 78.70%
- 6M
- 71.69%
- 1Y
- 146.42%
- 3Y*
- 53.13%
- 5Y*
- 31.69%
- 10Y*
- 33.59%
SMH
- 1D
- -1.20%
- 1M
- 4.32%
- YTD
- 64.11%
- 6M
- 60.66%
- 1Y
- 130.72%
- 3Y*
- 59.79%
- 5Y*
- 37.20%
- 10Y*
- 36.76%
^SOX vs. SMH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
^SOX PHLX Semiconductor Index | 78.70% | 42.23% | 19.27% | 64.90% | -35.83% | 41.16% | 51.14% | 60.12% | -7.81% | 38.23% |
SMH VanEck Semiconductor ETF | 64.11% | 49.17% | 39.10% | 73.38% | -33.53% | 42.13% | 55.53% | 64.45% | -9.05% | 38.48% |
Correlation
The correlation between ^SOX and SMH is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.98 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.98 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.99 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.99 |
Correlation (All Time) Calculated using the full available price history since Jun 5, 2000 | 0.97 |
The correlation between ^SOX and SMH has been stable across timeframes, ranging from 0.97 to 0.99 - a consistent structural relationship.
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Return for Risk
^SOX vs. SMH — Risk / Return Rank
^SOX
SMH
^SOX vs. SMH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for PHLX Semiconductor Index (^SOX) and VanEck Semiconductor ETF (SMH). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| ^SOX | SMH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.03 | ||
| Sortino ratioReturn per unit of downside risk | -0.09 | ||
| Omega ratioGain probability vs. loss probability | 1.58 | 1.60 | -0.01 |
| Calmar ratioReturn relative to maximum drawdown | 9.41 | 8.81 | +0.61 |
| Martin ratioReturn relative to average drawdown | 34.91 | 32.88 | +2.03 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| ^SOX | SMH | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 4.09 | 4.06 | +0.03 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.87 | 1.06 | -0.19 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.99 | 1.13 | -0.14 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.41 | 0.33 | +0.08 |
Drawdowns
^SOX vs. SMH - Drawdown Comparison
The maximum ^SOX drawdown since its inception was -87.15%, roughly equal to the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for ^SOX and SMH.
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Drawdown Indicators
| ^SOX | SMH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -87.15% | -84.96% | -2.19% |
Max Drawdown (1Y)Largest decline over 1 year | -15.65% | -14.93% | -0.72% |
Max Drawdown (3Y)Largest decline over 3 years | -39.66% | -35.74% | -3.92% |
Max Drawdown (5Y)Largest decline over 5 years | -46.47% | -45.30% | -1.17% |
Max Drawdown (10Y)Largest decline over 10 years | -46.47% | -45.30% | -1.17% |
Current DrawdownCurrent decline from peak | -9.05% | -7.35% | -1.70% |
Average DrawdownAverage peak-to-trough decline | -39.46% | -41.06% | +1.60% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.21% | 3.99% | +0.22% |
Volatility
^SOX vs. SMH - Volatility Comparison
PHLX Semiconductor Index (^SOX) has a higher volatility of 17.47% compared to VanEck Semiconductor ETF (SMH) at 14.85%. This indicates that ^SOX's price experiences larger fluctuations and is considered to be riskier than SMH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ^SOX | SMH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 17.47% | 14.85% | +2.62% |
Volatility (6M)Calculated over the trailing 6-month period | 29.69% | 26.75% | +2.94% |
Volatility (1Y)Calculated over the trailing 1-year period | 36.02% | 32.40% | +3.62% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 36.82% | 35.32% | +1.50% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 34.10% | 32.75% | +1.35% |
Frequently Asked Questions
With a correlation of 0.98, ^SOX and SMH move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
^SOX has higher volatility (17.47%) compared to SMH (14.85%). In terms of maximum drawdown, ^SOX dropped -87.15% vs SMH's -84.96%.
^SOX currently has the higher Sharpe Ratio (4.09 vs 4.06), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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