ARM vs. SMH
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 181.11% vs 157.81% for SMH. A 0.67 correlation means they provide meaningful diversification when combined.
Performance
ARM vs. SMH - Performance Comparison
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Returns By Period
In the year-to-date period, ARM achieves a 272.99% return, which is significantly higher than SMH's 85.74% return.
ARM
- 1D
- -7.22%
- 1M
- 33.02%
- YTD
- 272.99%
- 6M
- 259.89%
- 1Y
- 181.11%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
SMH
- 1D
- 1.37%
- 1M
- 16.07%
- YTD
- 85.74%
- 6M
- 85.96%
- 1Y
- 157.81%
- 3Y*
- 66.26%
- 5Y*
- 40.65%
- 10Y*
- 38.85%
ARM vs. SMH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
ARM Arm Holdings plc American Depositary Shares | 272.99% | -11.39% | 64.16% | 33.95% |
SMH VanEck Semiconductor ETF | 85.74% | 49.17% | 39.10% | 16.84% |
Correlation
The correlation between ARM and SMH is 0.61, 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 | 0.61 |
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 0.61 to 0.67 - a consistent structural relationship.
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Return for Risk
ARM vs. SMH — Risk / Return Rank
ARM
SMH
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 ratioReturn per unit of total volatility | -2.06 | ||
| Sortino ratioReturn per unit of downside risk | -1.42 | ||
| Omega ratioGain probability vs. loss probability | 1.40 | 1.66 | -0.26 |
| Calmar ratioReturn relative to maximum drawdown | 4.40 | 10.63 | -6.24 |
| Martin ratioReturn relative to average drawdown | 8.63 | 38.91 | -30.27 |
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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.
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Drawdown Indicators
| ARM | SMH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -53.97% | -84.96% | +30.99% |
Max Drawdown (1Y)Largest decline over 1 year | -41.47% | -14.93% | -26.54% |
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 DrawdownCurrent decline from peak | -7.22% | 0.00% | -7.22% |
Average DrawdownAverage peak-to-trough decline | -21.19% | -41.01% | +19.82% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 21.08% | 4.07% | +17.01% |
Volatility
ARM vs. SMH - Volatility Comparison
Arm Holdings plc American Depositary Shares (ARM) has a higher volatility of 36.10% compared to VanEck Semiconductor ETF (SMH) at 17.29%. 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.
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Volatility by Period
| ARM | SMH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 36.10% | 17.29% | +18.81% |
Volatility (6M)Calculated over the trailing 6-month period | 58.43% | 28.18% | +30.25% |
Volatility (1Y)Calculated over the trailing 1-year period | 70.18% | 34.14% | +36.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 76.75% | 35.68% | +41.07% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 76.75% | 32.95% | +43.80% |
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 0.17%.
| 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 | 0.17% | 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
ARM and SMH have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ARM has higher volatility (36.10%) compared to SMH (17.29%). In terms of maximum drawdown, ARM dropped -53.97% vs SMH's -84.96%.
SMH currently has the higher Sharpe Ratio (4.66 vs 2.60), 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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