CARZ vs. SMH

Last updated Jun 24, 2026

CARZ (First Trust NASDAQ Global Auto Index Fund) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - CARZ is a Consumer Discretionary Equities fund tracking the NASDAQ OMX Global Automobile (TR), while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, CARZ returned 16.27%/yr vs 37.85%/yr for SMH. A 0.66 correlation means they provide meaningful diversification when combined. CARZ charges 0.70%/yr vs 0.35%/yr for SMH.

Performance

CARZ vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust NASDAQ Global Auto Index Fund (CARZ) 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, CARZ achieves a 45.91% return, which is significantly lower than SMH's 72.73% return. Over the past 10 years, CARZ has underperformed SMH with an annualized return of 16.27%, while SMH has yielded a comparatively higher 37.85% annualized return.

CARZ

• 1D: -6.26%
• 1M: -0.36%
• YTD: 45.91%
• 6M: 45.04%
• 1Y: 96.22%
• 3Y*: 30.25%
• 5Y*: 14.87%
• 10Y*: 16.27%

SMH

• 1D: -7.01%
• 1M: 7.93%
• YTD: 72.73%
• 6M: 71.29%
• 1Y: 138.23%
• 3Y*: 62.28%
• 5Y*: 38.18%
• 10Y*: 37.85%

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

CARZ vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
CARZ First Trust NASDAQ Global Auto Index Fund	45.91%	37.18%	3.26%	42.47%	-31.25%	18.09%	54.66%	11.39%	-23.91%	25.47%
SMH VanEck Semiconductor ETF	72.73%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%

Correlation

The correlation between CARZ and SMH is 0.90, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.80
Correlation (5Y) Calculated over the trailing 5-year period	0.81
Correlation (10Y) Calculated over the trailing 10-year period	0.70
Correlation (All Time) Calculated using the full available price history since May 10, 2011	0.66

Over the past year, CARZ and SMH have become more correlated (0.90) than their long-term average of 0.66, meaning their price movements have been converging.

CARZ vs. SMH - Sectors Allocation Comparison

Sectors	CARZ	SMH
Technology	34.6%	100.0%
Consumer Cyclical	21.5%	-
Industrials	7.5%	-
Basic Materials	6.5%	-
Communication Services	1.9%	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

CARZ vs. SMH — Risk / Return Rank

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

CARZ

CARZ Risk / Return Rank: 92
CARZ Sharpe Ratio Rank: 94
CARZ Sortino Ratio Rank: 88
CARZ Omega Ratio Rank: 89
CARZ Calmar Ratio Rank: 94
CARZ Martin Ratio Rank: 94

SMH

SMH Risk / Return Rank: 94
SMH Sharpe Ratio Rank: 96
SMH Sortino Ratio Rank: 91
SMH Omega Ratio Rank: 92
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.

CARZ vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust NASDAQ Global Auto Index Fund (CARZ) 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.

	CARZ	SMH	Difference
Sharpe ratio: Return per unit of total volatility	3.29	3.99	-0.70
Sortino ratio: Return per unit of downside risk	3.72	4.05	-0.33
Omega ratio: Gain probability vs. loss probability	1.53	1.58	-0.05
Calmar ratio: Return relative to maximum drawdown	6.70	9.31	-2.61
Martin ratio: Return relative to average drawdown	24.83	33.88	-9.04

CARZ vs. SMH - Sharpe Ratio Comparison

The current CARZ Sharpe Ratio is 3.29, which is comparable to the SMH Sharpe Ratio of 3.99. The chart below compares the historical Sharpe Ratios of CARZ 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

CARZ vs. SMH - Drawdown Comparison

The maximum CARZ drawdown since its inception was -51.20%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for CARZ and SMH.

Drawdown Indicators

	CARZ	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-51.20%	-84.96%	+33.76%
Max Drawdown (1Y) Largest decline over 1 year	-14.44%	-14.93%	+0.49%
Max Drawdown (3Y) Largest decline over 3 years	-27.84%	-35.74%	+7.90%
Max Drawdown (5Y) Largest decline over 5 years	-40.30%	-45.30%	+5.00%
Max Drawdown (10Y) Largest decline over 10 years	-51.20%	-45.30%	-5.90%
Current Drawdown Current decline from peak	-7.71%	-7.01%	-0.70%
Average Drawdown Average peak-to-trough decline	-12.87%	-41.01%	+28.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.89%	4.10%	-0.21%

Volatility

CARZ vs. SMH - Volatility Comparison

The current volatility for First Trust NASDAQ Global Auto Index Fund (CARZ) is 16.09%, while VanEck Semiconductor ETF (SMH) has a volatility of 19.08%. This indicates that CARZ 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

	CARZ	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.09%	19.08%	-2.99%
Volatility (6M) Calculated over the trailing 6-month period	24.90%	29.18%	-4.28%
Volatility (1Y) Calculated over the trailing 1-year period	29.42%	34.87%	-5.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.81%	35.83%	-7.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.54%	32.97%	-6.43%

CARZ vs. SMH - Expense Ratio Comparison

CARZ has a 0.70% expense ratio, which is higher than SMH's 0.35% expense ratio.

Dividends

CARZ vs. SMH - Dividend Comparison

CARZ's dividend yield for the trailing twelve months is around 1.46%, more than SMH's 0.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CARZ First Trust NASDAQ Global Auto Index Fund	1.46%	2.13%	1.17%	1.40%	1.59%	2.25%	0.63%	3.23%	2.85%	2.11%	2.47%	1.64%
SMH VanEck Semiconductor ETF	0.18%	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 CARZ and SMH in my portfolio?

CARZ and SMH have a correlation of 0.90, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CARZ or SMH?

SMH has higher volatility (19.08%) compared to CARZ (16.09%). In terms of maximum drawdown, CARZ dropped -51.20% vs SMH's -84.96%.

Which ETF is better, CARZ or SMH?

On 10-year performance, SMH leads with 37.85% vs 16.27% for CARZ. On fees, SMH is cheaper at 0.35% per year. On volatility, CARZ has been the lower-risk option at 16.09%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CARZ or SMH?

Over the 10-year period, SMH has performed better with a 37.85% return vs 16.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CARZ or SMH?

SMH is cheaper with a 0.35% expense ratio, compared with 0.70% for CARZ.

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

CARZ has the higher dividend yield at 1.46%, compared with 0.18% for SMH.

What is the main difference between CARZ and SMH?

CARZ is categorized as Consumer Discretionary Equities, while SMH is Semiconductors. CARZ tracks NASDAQ OMX Global Automobile (TR), while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: First Trust and VanEck. Their fees differ too: 0.70% for CARZ and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (3.99 vs 3.29), 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.