EEM vs. SMH

Last updated Jun 13, 2026

EEM (iShares MSCI Emerging Markets ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net), while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, EEM returned 9.91%/yr vs 37.49%/yr for SMH. A 0.64 correlation means they provide meaningful diversification when combined. EEM charges 0.72%/yr vs 0.35%/yr for SMH.

Performance

EEM vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Emerging Markets ETF (EEM) 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, EEM achieves a 24.07% return, which is significantly lower than SMH's 72.15% return. Over the past 10 years, EEM has underperformed SMH with an annualized return of 9.91%, while SMH has yielded a comparatively higher 37.49% annualized return.

EEM

• 1D: 0.56%
• 1M: 1.00%
• YTD: 24.07%
• 6M: 26.94%
• 1Y: 45.22%
• 3Y*: 21.60%
• 5Y*: 6.56%
• 10Y*: 9.91%

SMH

• 1D: 1.72%
• 1M: 8.30%
• YTD: 72.15%
• 6M: 75.62%
• 1Y: 136.32%
• 3Y*: 60.05%
• 5Y*: 38.42%
• 10Y*: 37.49%

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

EEM vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EEM iShares MSCI Emerging Markets ETF	24.07%	33.98%	6.49%	8.95%	-20.56%	-3.63%	17.02%	18.22%	-15.31%	37.26%
SMH VanEck Semiconductor ETF	72.15%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%

Correlation

The correlation between EEM and SMH is 0.76, 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	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.65
Correlation (5Y) Calculated over the trailing 5-year period	0.65
Correlation (10Y) Calculated over the trailing 10-year period	0.65
Correlation (All Time) Calculated using the full available price history since Apr 14, 2003	0.64

The correlation between EEM and SMH shifts across timeframes, from 0.64 (all time) to 0.76 (1 year), reflecting how their relationship changes across market environments.

EEM vs. SMH - Sectors Allocation Comparison

Sectors	EEM	SMH
Technology	43.6%	100.0%
Financial Services	17.5%	-
Consumer Cyclical	8.1%	-
Industrials	6.2%	-
Basic Materials	6.1%	-
Communication Services	5.7%	-
Energy	3.3%	-
Consumer Defensive	2.7%	-
Healthcare	2.5%	-
Utilities	2.0%	-
Real Estate	0.9%	-

Return for Risk

EEM vs. SMH — Risk / Return Rank

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

EEM

EEM Risk / Return Rank: 75
EEM Sharpe Ratio Rank: 76
EEM Sortino Ratio Rank: 70
EEM Omega Ratio Rank: 78
EEM Calmar Ratio Rank: 75
EEM Martin Ratio Rank: 75

SMH

SMH Risk / Return Rank: 96
SMH Sharpe Ratio Rank: 97
SMH Sortino Ratio Rank: 94
SMH Omega Ratio Rank: 94
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.

EEM vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets ETF (EEM) 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.

	EEM	SMH	Difference
Sharpe ratio: Return per unit of total volatility	2.10	4.13	-2.03
Sortino ratio: Return per unit of downside risk	2.73	4.26	-1.53
Omega ratio: Gain probability vs. loss probability	1.40	1.60	-0.20
Calmar ratio: Return relative to maximum drawdown	3.36	9.18	-5.82
Martin ratio: Return relative to average drawdown	12.38	33.74	-21.35

EEM vs. SMH - Sharpe Ratio Comparison

The current EEM Sharpe Ratio is 2.10, which is lower than the SMH Sharpe Ratio of 4.13. The chart below compares the historical Sharpe Ratios of EEM 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

EEM vs. SMH - Drawdown Comparison

The maximum EEM drawdown since its inception was -66.43%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for EEM and SMH.

Drawdown Indicators

	EEM	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-66.43%	-84.96%	+18.53%
Max Drawdown (1Y) Largest decline over 1 year	-13.52%	-14.93%	+1.41%
Max Drawdown (3Y) Largest decline over 3 years	-17.29%	-35.74%	+18.45%
Max Drawdown (5Y) Largest decline over 5 years	-37.49%	-45.30%	+7.81%
Max Drawdown (10Y) Largest decline over 10 years	-39.82%	-45.30%	+5.48%
Current Drawdown Current decline from peak	-4.12%	-2.81%	-1.31%
Average Drawdown Average peak-to-trough decline	-16.00%	-41.04%	+25.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.67%	4.06%	-0.39%

Volatility

EEM vs. SMH - Volatility Comparison

The current volatility for iShares MSCI Emerging Markets ETF (EEM) is 10.80%, while VanEck Semiconductor ETF (SMH) has a volatility of 16.25%. This indicates that EEM 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

	EEM	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.80%	16.25%	-5.45%
Volatility (6M) Calculated over the trailing 6-month period	19.39%	27.73%	-8.34%
Volatility (1Y) Calculated over the trailing 1-year period	21.64%	33.20%	-11.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.26%	35.47%	-16.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.64%	32.82%	-12.18%

EEM vs. SMH - Expense Ratio Comparison

EEM has a 0.72% expense ratio, which is higher than SMH's 0.35% expense ratio.

Dividends

EEM vs. SMH - Dividend Comparison

EEM's dividend yield for the trailing twelve months is around 1.79%, more than SMH's 0.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEM iShares MSCI Emerging Markets ETF	1.79%	2.22%	2.43%	2.63%	2.50%	1.99%	1.45%	2.76%	2.24%	1.89%	1.89%	2.49%
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 EEM and SMH in my portfolio?

EEM and SMH have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EEM or SMH?

SMH has higher volatility (16.25%) compared to EEM (10.80%). In terms of maximum drawdown, EEM dropped -66.43% vs SMH's -84.96%.

Which ETF is better, EEM or SMH?

On 10-year performance, SMH leads with 37.49% vs 9.91% for EEM. On fees, SMH is cheaper at 0.35% per year. On volatility, EEM has been the lower-risk option at 10.80%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EEM or SMH?

Over the 10-year period, SMH has performed better with a 37.49% return vs 9.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EEM or SMH?

SMH is cheaper with a 0.35% expense ratio, compared with 0.72% for EEM.

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

EEM has the higher dividend yield at 1.79%, compared with 0.18% for SMH.

What is the main difference between EEM and SMH?

EEM is categorized as Emerging Markets Diversified, while SMH is Semiconductors. EEM tracks MSCI Emerging Markets Index (Net), while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: iShares and VanEck. Their fees differ too: 0.72% for EEM and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (4.13 vs 2.10), 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.