FXD vs. SMH

Last updated Jun 4, 2026

FXD (First Trust Consumer Discretionary AlphaDEX Fund) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - FXD is a Consumer Discretionary Equities fund tracking the StrataQuant Consumer Discretionary Index, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, FXD returned 7.89%/yr vs 37.68%/yr for SMH. A 0.63 correlation means they provide meaningful diversification when combined. FXD charges 0.63%/yr vs 0.35%/yr for SMH.

Performance

FXD vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Consumer Discretionary AlphaDEX Fund (FXD) 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, FXD achieves a -1.88% return, which is significantly lower than SMH's 77.13% return. Over the past 10 years, FXD has underperformed SMH with an annualized return of 7.89%, while SMH has yielded a comparatively higher 37.68% annualized return.

FXD

• 1D: -0.39%
• 1M: 2.79%
• YTD: -1.88%
• 6M: -1.26%
• 1Y: 9.00%
• 3Y*: 10.33%
• 5Y*: 3.00%
• 10Y*: 7.89%

SMH

• 1D: 0.90%
• 1M: 25.87%
• YTD: 77.13%
• 6M: 75.61%
• 1Y: 157.20%
• 3Y*: 64.17%
• 5Y*: 39.21%
• 10Y*: 37.68%

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

FXD vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FXD First Trust Consumer Discretionary AlphaDEX Fund	-1.88%	6.70%	10.57%	23.39%	-21.56%	22.72%	12.97%	24.22%	-11.60%	19.77%
SMH VanEck Semiconductor ETF	77.13%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%

Correlation

The correlation between FXD and SMH is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (3Y) Calculated over the trailing 3-year period	0.49
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.60
Correlation (All Time) Calculated using the full available price history since May 11, 2007	0.63

Over the past year, the correlation between FXD and SMH has dropped to 0.38 - well below their long-term average of 0.63, suggesting their price drivers have been diverging.

FXD vs. SMH - Sectors Allocation Comparison

Sectors	FXD	SMH
Consumer Cyclical	69.7%	-
Consumer Defensive	9.2%	-
Industrials	9.2%	-
Communication Services	6.7%	-
Technology	2.5%	100.0%
Energy	0.8%	-
Basic Materials	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

FXD vs. SMH — Risk / Return Rank

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

FXD

FXD Risk / Return Rank: 16
FXD Sharpe Ratio Rank: 16
FXD Sortino Ratio Rank: 16
FXD Omega Ratio Rank: 15
FXD Calmar Ratio Rank: 17
FXD Martin Ratio Rank: 17

SMH

SMH Risk / Return Rank: 96
SMH Sharpe Ratio Rank: 98
SMH Sortino Ratio Rank: 95
SMH Omega Ratio Rank: 95
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.

FXD vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Consumer Discretionary AlphaDEX Fund (FXD) 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.

	FXD	SMH	Difference
Sharpe ratio: Return per unit of total volatility	0.47	5.19	-4.71
Sortino ratio: Return per unit of downside risk	0.83	5.22	-4.38
Omega ratio: Gain probability vs. loss probability	1.09	1.72	-0.63
Calmar ratio: Return relative to maximum drawdown	0.65	10.59	-9.94
Martin ratio: Return relative to average drawdown	1.65	40.63	-38.98
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FXD vs. SMH - Sharpe Ratio Comparison

The current FXD Sharpe Ratio is 0.47, which is lower than the SMH Sharpe Ratio of 5.19. The chart below compares the historical Sharpe Ratios of FXD 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.

Sharpe Ratios by Period

	FXD	SMH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.47	5.19	-4.71
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.13	1.13	-0.99
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.33	1.16	-0.83
Sharpe Ratio (All Time) Calculated using the full available price history	0.31	0.34	-0.03

Drawdowns

FXD vs. SMH - Drawdown Comparison

The maximum FXD drawdown since its inception was -65.27%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for FXD and SMH.

Drawdown Indicators

	FXD	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-65.27%	-84.96%	+19.69%
Max Drawdown (1Y) Largest decline over 1 year	-13.94%	-14.93%	+0.99%
Max Drawdown (3Y) Largest decline over 3 years	-26.02%	-35.74%	+9.72%
Max Drawdown (5Y) Largest decline over 5 years	-33.74%	-45.30%	+11.56%
Max Drawdown (10Y) Largest decline over 10 years	-49.54%	-45.30%	-4.24%
Current Drawdown Current decline from peak	-7.12%	0.00%	-7.12%
Average Drawdown Average peak-to-trough decline	-10.97%	-41.09%	+30.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.48%	3.89%	+1.59%

Volatility

FXD vs. SMH - Volatility Comparison

The current volatility for First Trust Consumer Discretionary AlphaDEX Fund (FXD) is 6.00%, while VanEck Semiconductor ETF (SMH) has a volatility of 11.47%. This indicates that FXD 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

	FXD	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.00%	11.47%	-5.47%
Volatility (6M) Calculated over the trailing 6-month period	14.23%	24.29%	-10.06%
Volatility (1Y) Calculated over the trailing 1-year period	19.21%	30.56%	-11.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.70%	35.01%	-12.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.67%	32.57%	-8.90%

FXD vs. SMH - Expense Ratio Comparison

FXD has a 0.63% expense ratio, which is higher than SMH's 0.35% expense ratio.

Dividends

FXD vs. SMH - Dividend Comparison

FXD's dividend yield for the trailing twelve months is around 0.78%, more than SMH's 0.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXD First Trust Consumer Discretionary AlphaDEX Fund	0.78%	0.80%	0.89%	0.70%	1.00%	0.62%	0.42%	0.92%	1.08%	0.93%	1.05%	0.90%
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

Can I hold both FXD and SMH in my portfolio?

FXD and SMH have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FXD or SMH?

SMH has higher volatility (11.47%) compared to FXD (6.00%). In terms of maximum drawdown, FXD dropped -65.27% vs SMH's -84.96%.

Which ETF is better, FXD or SMH?

On 10-year performance, SMH leads with 37.68% vs 7.89% for FXD. On fees, SMH is cheaper at 0.35% per year. On volatility, FXD has been the lower-risk option at 6.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXD or SMH?

Over the 10-year period, SMH has performed better with a 37.68% return vs 7.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXD or SMH?

SMH is cheaper with a 0.35% expense ratio, compared with 0.63% for FXD.

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

FXD has the higher dividend yield at 0.78%, compared with 0.17% for SMH.

What is the main difference between FXD and SMH?

FXD is categorized as Consumer Discretionary Equities, while SMH is Semiconductors. FXD tracks StrataQuant Consumer Discretionary Index, while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: First Trust and VanEck. Their fees differ too: 0.63% for FXD and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (5.19 vs 0.47), 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.