AAXJ vs. SMH

Last updated Jun 4, 2026

AAXJ (iShares MSCI All Country Asia ex-Japan ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - AAXJ is a Asia Pacific Equities fund tracking the MSCI All Country Asia ex Japan Index, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, AAXJ returned 10.50%/yr vs 37.68%/yr for SMH. A 0.66 correlation means they provide meaningful diversification when combined. AAXJ charges 0.68%/yr vs 0.35%/yr for SMH.

Performance

AAXJ vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI All Country Asia ex-Japan ETF (AAXJ) and VanEck Semiconductor ETF (SMH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AAXJ achieves a 31.17% return, which is significantly lower than SMH's 77.13% return. Over the past 10 years, AAXJ has underperformed SMH with an annualized return of 10.50%, while SMH has yielded a comparatively higher 37.68% annualized return.

AAXJ

• 1D: -1.06%
• 1M: 10.65%
• YTD: 31.17%
• 6M: 33.71%
• 1Y: 59.00%
• 3Y*: 24.49%
• 5Y*: 7.04%
• 10Y*: 10.50%

SMH

• 1D: 0.90%
• 1M: 25.87%
• YTD: 77.13%
• 6M: 75.61%
• 1Y: 157.20%
• 3Y*: 64.17%
• 5Y*: 39.21%
• 10Y*: 37.68%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AAXJ vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AAXJ iShares MSCI All Country Asia ex-Japan ETF	31.17%	31.53%	10.41%	4.79%	-20.35%	-5.73%	23.35%	17.93%	-15.04%	41.76%
SMH VanEck Semiconductor ETF	77.13%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%

Correlation

The correlation between AAXJ and SMH is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.75
Correlation (3Y) Calculated over the trailing 3-year period	0.64
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (10Y) Calculated over the trailing 10-year period	0.65
Correlation (All Time) Calculated using the full available price history since Aug 18, 2008	0.66

The correlation between AAXJ and SMH shifts across timeframes, from 0.64 (3 years) to 0.75 (1 year), reflecting how their relationship changes across market environments.

AAXJ vs. SMH - Sectors Allocation Comparison

Sectors	AAXJ	SMH
Technology	41.6%	100.0%
Financial Services	17.7%	-
Consumer Cyclical	10.3%	-
Industrials	8.3%	-
Communication Services	6.9%	-
Basic Materials	3.5%	-
Healthcare	3.0%	-
Energy	2.7%	-
Consumer Defensive	2.4%	-
Utilities	1.8%	-
Real Estate	1.7%	-

Return for Risk

AAXJ vs. SMH — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AAXJ

AAXJ Risk / Return Rank: 84
AAXJ Sharpe Ratio Rank: 87
AAXJ Sortino Ratio Rank: 83
AAXJ Omega Ratio Rank: 85
AAXJ Calmar Ratio Rank: 82
AAXJ Martin Ratio Rank: 82

SMH

SMH Risk / Return Rank: 96
SMH Sharpe Ratio Rank: 98
SMH Sortino Ratio Rank: 95
SMH Omega Ratio Rank: 95
SMH Calmar Ratio Rank: 97
SMH Martin Ratio Rank: 96

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AAXJ vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI All Country Asia ex-Japan ETF (AAXJ) 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.

	AAXJ	SMH	Difference
Sharpe ratio: Return per unit of total volatility	2.93	5.19	-2.26
Sortino ratio: Return per unit of downside risk	3.77	5.22	-1.45
Omega ratio: Gain probability vs. loss probability	1.53	1.72	-0.19
Calmar ratio: Return relative to maximum drawdown	4.34	10.59	-6.25
Martin ratio: Return relative to average drawdown	16.76	40.63	-23.87
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AAXJ vs. SMH - Sharpe Ratio Comparison

The current AAXJ Sharpe Ratio is 2.93, which is lower than the SMH Sharpe Ratio of 5.19. The chart below compares the historical Sharpe Ratios of AAXJ and SMH, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AAXJ	SMH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.93	5.19	-2.26
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.35	1.13	-0.77
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.52	1.16	-0.64
Sharpe Ratio (All Time) Calculated using the full available price history	0.28	0.34	-0.05

Drawdowns

AAXJ vs. SMH - Drawdown Comparison

The maximum AAXJ drawdown since its inception was -49.37%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for AAXJ and SMH.

Drawdown Indicators

	AAXJ	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-49.37%	-84.96%	+35.59%
Max Drawdown (1Y) Largest decline over 1 year	-13.66%	-14.93%	+1.27%
Max Drawdown (3Y) Largest decline over 3 years	-19.74%	-35.74%	+16.00%
Max Drawdown (5Y) Largest decline over 5 years	-40.74%	-45.30%	+4.56%
Max Drawdown (10Y) Largest decline over 10 years	-44.52%	-45.30%	+0.78%
Current Drawdown Current decline from peak	-1.06%	0.00%	-1.06%
Average Drawdown Average peak-to-trough decline	-14.03%	-41.09%	+27.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.53%	3.89%	-0.36%

Volatility

AAXJ vs. SMH - Volatility Comparison

The current volatility for iShares MSCI All Country Asia ex-Japan ETF (AAXJ) is 8.93%, while VanEck Semiconductor ETF (SMH) has a volatility of 11.47%. This indicates that AAXJ experiences smaller price fluctuations and is considered to be less risky than SMH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AAXJ	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.93%	11.47%	-2.54%
Volatility (6M) Calculated over the trailing 6-month period	17.46%	24.29%	-6.83%
Volatility (1Y) Calculated over the trailing 1-year period	20.25%	30.56%	-10.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.94%	35.01%	-15.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.25%	32.57%	-12.32%

AAXJ vs. SMH - Expense Ratio Comparison

AAXJ has a 0.68% expense ratio, which is higher than SMH's 0.35% expense ratio.

Dividends

AAXJ vs. SMH - Dividend Comparison

AAXJ's dividend yield for the trailing twelve months is around 1.38%, more than SMH's 0.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAXJ iShares MSCI All Country Asia ex-Japan ETF	1.38%	1.81%	1.86%	1.95%	1.74%	2.21%	1.06%	1.83%	2.10%	1.99%	1.77%	2.44%
SMH VanEck Semiconductor ETF	0.17%	0.31%	0.44%	0.60%	1.18%	0.51%	0.69%	1.50%	1.88%	1.43%	0.80%	2.14%

Frequently Asked Questions

Can I hold both AAXJ and SMH in my portfolio?

AAXJ and SMH have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AAXJ or SMH?

SMH has higher volatility (11.47%) compared to AAXJ (8.93%). In terms of maximum drawdown, AAXJ dropped -49.37% vs SMH's -84.96%.

Which ETF is better, AAXJ or SMH?

On 10-year performance, SMH leads with 37.68% vs 10.50% for AAXJ. On fees, SMH is cheaper at 0.35% per year. On volatility, AAXJ has been the lower-risk option at 8.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AAXJ or SMH?

Over the 10-year period, SMH has performed better with a 37.68% return vs 10.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AAXJ or SMH?

SMH is cheaper with a 0.35% expense ratio, compared with 0.68% for AAXJ.

Which ETF pays a higher dividend yield, AAXJ or SMH?

AAXJ has the higher dividend yield at 1.38%, compared with 0.17% for SMH.

What is the main difference between AAXJ and SMH?

AAXJ is categorized as Asia Pacific Equities, while SMH is Semiconductors. AAXJ tracks MSCI All Country Asia ex Japan Index, while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: iShares and VanEck. Their fees differ too: 0.68% for AAXJ and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (5.19 vs 2.93), 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.