ARM vs. SMH

Last updated Aug 1, 2026

ARM (Arm Holdings plc American Depositary Shares) is a stock, while SMH (VanEck Semiconductor ETF) is Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Over the past year, ARM returned 74.22% vs 90.95% for SMH. Their 0.67 correlation means they have sometimes moved together and sometimes differently.

Performance

ARM vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Arm Holdings plc American Depositary Shares (ARM) 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, ARM achieves a 119.28% return, which is significantly higher than SMH's 50.09% return.

ARM

• 1D: -0.77%
• 1M: -23.98%
• 6M: 127.50%
• YTD: 119.28%
• 1Y: 74.22%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 65.65%

SMH

• 1D: 0.30%
• 1M: -8.74%
• 6M: 33.97%
• YTD: 50.09%
• 1Y: 90.95%
• 3Y*: 50.56%
• 5Y*: 33.46%
• 10Y*: 34.16%
• ALL TIME*: 11.06%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ARM Arm Holdings plc American Depositary Shares	$1.51B	$1.75B	$3.23B
SMH VanEck Semiconductor ETF	$8.28B	$7.64B	$7.07B

ARM vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
ARM Arm Holdings plc American Depositary Shares	119.28%	-11.39%	64.16%	33.95%
SMH VanEck Semiconductor ETF	50.09%	49.17%	39.10%	16.84%

Correlation

The correlation between ARM and SMH is 0.64, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.64
Correlation (All Time) Calculated using the full available price history since Sep 14, 2023	0.67

The correlation between ARM and SMH has been stable across timeframes, ranging from 0.64 to 0.67 - a consistent structural relationship.

Return for Risk

ARM vs. SMH — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

ARM

ARM Risk / Return Rank: 74
ARM Sharpe Ratio Rank: 75
ARM Sortino Ratio Rank: 76
ARM Omega Ratio Rank: 73
ARM Calmar Ratio Rank: 73
ARM Martin Ratio Rank: 71

SMH

SMH Risk / Return Rank: 87
SMH Sharpe Ratio Rank: 91
SMH Sortino Ratio Rank: 83
SMH Omega Ratio Rank: 84
SMH Calmar Ratio Rank: 88
SMH Martin Ratio Rank: 91

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

ARM vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Arm Holdings plc American Depositary Shares (ARM) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ARM	SMH	Difference
Sharpe ratio: Return per unit of total volatility	0.95	2.29	-1.34
Sortino ratio: Return per unit of downside risk	1.80	2.70	-0.90
Omega ratio: Gain probability vs. loss probability	1.21	1.36	-0.15
Calmar ratio: Return relative to maximum drawdown	1.43	3.58	-2.15
Martin ratio: Return relative to average drawdown	3.03	14.64	-11.61

ARM vs. SMH - Sharpe Ratio Comparison

The current ARM Sharpe Ratio is 0.95, which is lower than the SMH Sharpe Ratio of 2.29. The chart below compares the historical Sharpe Ratios of ARM 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.

Drawdowns

ARM vs. SMH - Drawdown Comparison

The maximum ARM drawdown since its inception was -53.97%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for ARM and SMH.

Drawdown Indicators

	ARM	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-53.97%	-84.96%	+30.99%
Max Drawdown (1Y) Largest decline over 1 year	-48.83%	-24.62%	-24.21%
Max Drawdown (3Y) Largest decline over 3 years	—	-35.74%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-45.30%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-45.30%	—
Current Drawdown Current decline from peak	-45.46%	-19.19%	-26.27%
Average Drawdown Average peak-to-trough decline	-21.63%	-40.89%	+19.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	22.99%	6.01%	+16.98%

Volatility

ARM vs. SMH - Volatility Comparison

Arm Holdings plc American Depositary Shares (ARM) has a higher volatility of 24.89% compared to VanEck Semiconductor ETF (SMH) at 14.70%. This indicates that ARM'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.

Volatility by Period

	ARM	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	24.89%	14.70%	+10.19%
Volatility (6M) Calculated over the trailing 6-month period	64.70%	33.13%	+31.57%
Volatility (1Y) Calculated over the trailing 1-year period	74.80%	38.57%	+36.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	77.17%	36.50%	+40.67%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	77.17%	33.32%	+43.85%

Dividends

ARM vs. SMH - Dividend Comparison

ARM has not paid dividends to shareholders, while SMH's dividend yield for the trailing twelve months is around 0.20%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARM Arm Holdings plc American Depositary Shares	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SMH VanEck Semiconductor ETF	0.20%	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 ARM and SMH in my portfolio?

ARM and SMH have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ARM or SMH?

ARM has higher volatility (24.89%) compared to SMH (14.70%). In terms of maximum drawdown, ARM dropped -53.97% vs SMH's -84.96%.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (2.29 vs 0.95), 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.