ERTH vs. SMOG

Last updated Jun 24, 2026

ERTH (Invesco MSCI Sustainable Future ETF) and SMOG (VanEck Low Carbon Energy ETF) are both Alternative Energy Equities funds - ERTH tracks the MSCI Global Environment Select Index while SMOG tracks the MVIS Global Low Carbon Energy Index. Both are passively managed. Over the past 10 years, ERTH returned 7.36%/yr vs 12.89%/yr for SMOG. Their correlation of 0.86 suggests significant overlap in exposure. ERTH charges 0.55%/yr vs 0.61%/yr for SMOG.

Performance

ERTH vs. SMOG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco MSCI Sustainable Future ETF (ERTH) and VanEck Low Carbon Energy ETF (SMOG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ERTH achieves a 0.55% return, which is significantly lower than SMOG's 10.83% return. Over the past 10 years, ERTH has underperformed SMOG with an annualized return of 7.36%, while SMOG has yielded a comparatively higher 12.89% annualized return.

ERTH

• 1D: -2.53%
• 1M: -4.42%
• YTD: 0.55%
• 6M: -0.40%
• 1Y: 13.85%
• 3Y*: 1.43%
• 5Y*: -5.81%
• 10Y*: 7.36%

SMOG

• 1D: -3.46%
• 1M: -5.46%
• YTD: 10.83%
• 6M: 10.00%
• 1Y: 33.70%
• 3Y*: 8.57%
• 5Y*: -0.48%
• 10Y*: 12.89%

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

ERTH vs. SMOG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ERTH Invesco MSCI Sustainable Future ETF	0.55%	18.47%	-13.56%	0.12%	-27.59%	2.64%	51.02%	36.78%	-12.49%	30.53%
SMOG VanEck Low Carbon Energy ETF	10.83%	33.36%	-9.33%	1.42%	-29.92%	-2.75%	118.38%	38.86%	-10.18%	22.69%

Correlation

The correlation between ERTH and SMOG is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since May 9, 2007	0.86

The correlation between ERTH and SMOG has been stable across timeframes, ranging from 0.86 to 0.95 - a consistent structural relationship.

ERTH vs. SMOG - Sectors Allocation Comparison

Sectors	ERTH	SMOG
Real Estate	27.4%	-
Industrials	19.2%	30.1%
Consumer Cyclical	14.0%	20.6%
Technology	10.9%	7.4%
Energy	7.1%	5.6%
Utilities	6.9%	34.4%
Basic Materials	5.3%	1.3%
Consumer Defensive	1.8%	-
Financial Services	0.3%	0.6%
Communication Services	-	-
Healthcare	-	-

Return for Risk

ERTH vs. SMOG — Risk / Return Rank

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

ERTH

ERTH Risk / Return Rank: 27
ERTH Sharpe Ratio Rank: 24
ERTH Sortino Ratio Rank: 23
ERTH Omega Ratio Rank: 22
ERTH Calmar Ratio Rank: 36
ERTH Martin Ratio Rank: 32

SMOG

SMOG Risk / Return Rank: 52
SMOG Sharpe Ratio Rank: 47
SMOG Sortino Ratio Rank: 43
SMOG Omega Ratio Rank: 44
SMOG Calmar Ratio Rank: 65
SMOG Martin Ratio Rank: 58

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.

ERTH vs. SMOG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco MSCI Sustainable Future ETF (ERTH) and VanEck Low Carbon Energy ETF (SMOG). 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.

	ERTH	SMOG	Difference
Sharpe ratio: Return per unit of total volatility	0.80	1.56	-0.76
Sortino ratio: Return per unit of downside risk	1.20	2.09	-0.89
Omega ratio: Gain probability vs. loss probability	1.15	1.27	-0.12
Calmar ratio: Return relative to maximum drawdown	1.72	2.99	-1.27
Martin ratio: Return relative to average drawdown	4.42	9.70	-5.28

ERTH vs. SMOG - Sharpe Ratio Comparison

The current ERTH Sharpe Ratio is 0.80, which is lower than the SMOG Sharpe Ratio of 1.56. The chart below compares the historical Sharpe Ratios of ERTH and SMOG, 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

ERTH vs. SMOG - Drawdown Comparison

The maximum ERTH drawdown since its inception was -64.45%, smaller than the maximum SMOG drawdown of -84.39%. Use the drawdown chart below to compare losses from any high point for ERTH and SMOG.

Drawdown Indicators

	ERTH	SMOG	Difference
Max Drawdown Largest peak-to-trough decline	-64.45%	-84.39%	+19.94%
Max Drawdown (1Y) Largest decline over 1 year	-8.07%	-11.32%	+3.25%
Max Drawdown (3Y) Largest decline over 3 years	-33.82%	-28.72%	-5.10%
Max Drawdown (5Y) Largest decline over 5 years	-51.72%	-47.86%	-3.86%
Max Drawdown (10Y) Largest decline over 10 years	-51.72%	-51.10%	-0.62%
Current Drawdown Current decline from peak	-32.26%	-19.91%	-12.35%
Average Drawdown Average peak-to-trough decline	-21.49%	-52.37%	+30.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.14%	3.48%	-0.34%

Volatility

ERTH vs. SMOG - Volatility Comparison

The current volatility for Invesco MSCI Sustainable Future ETF (ERTH) is 6.57%, while VanEck Low Carbon Energy ETF (SMOG) has a volatility of 9.15%. This indicates that ERTH experiences smaller price fluctuations and is considered to be less risky than SMOG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ERTH	SMOG	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.57%	9.15%	-2.58%
Volatility (6M) Calculated over the trailing 6-month period	12.97%	17.34%	-4.37%
Volatility (1Y) Calculated over the trailing 1-year period	17.34%	21.70%	-4.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.96%	25.36%	-2.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.56%	25.74%	-3.18%

ERTH vs. SMOG - Expense Ratio Comparison

ERTH has a 0.55% expense ratio, which is lower than SMOG's 0.61% expense ratio.

Dividends

ERTH vs. SMOG - Dividend Comparison

ERTH's dividend yield for the trailing twelve months is around 1.93%, more than SMOG's 1.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ERTH Invesco MSCI Sustainable Future ETF	1.93%	1.46%	1.00%	1.28%	1.22%	15.33%	0.21%	0.71%	0.61%	0.87%	1.06%	0.79%
SMOG VanEck Low Carbon Energy ETF	1.42%	1.57%	1.64%	1.58%	1.32%	0.44%	0.06%	0.00%	0.62%	1.25%	2.12%	0.56%

Frequently Asked Questions

Can I hold both ERTH and SMOG in my portfolio?

With a correlation of 0.91, ERTH and SMOG move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, ERTH or SMOG?

SMOG has higher volatility (9.15%) compared to ERTH (6.57%). In terms of maximum drawdown, ERTH dropped -64.45% vs SMOG's -84.39%.

Which ETF is better, ERTH or SMOG?

On 10-year performance, SMOG leads with 12.89% vs 7.36% for ERTH. On fees, ERTH is cheaper at 0.55% per year. On volatility, ERTH has been the lower-risk option at 6.57%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ERTH or SMOG?

Over the 10-year period, SMOG has performed better with a 12.89% return vs 7.36%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ERTH or SMOG?

ERTH is cheaper with a 0.55% expense ratio, compared with 0.61% for SMOG.

Which ETF pays a higher dividend yield, ERTH or SMOG?

ERTH has the higher dividend yield at 1.93%, compared with 1.42% for SMOG.

What is the main difference between ERTH and SMOG?

ERTH tracks MSCI Global Environment Select Index, while SMOG tracks MVIS Global Low Carbon Energy Index. They also come from different issuers: Invesco and VanEck. Their fees differ too: 0.55% for ERTH and 0.61% for SMOG.

Which has better risk-adjusted returns?

SMOG currently has the higher Sharpe Ratio (1.56 vs 0.80), 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.