GENZ vs. SMH

Last updated Jun 5, 2026

GENZ (VanEck Digital Native Economy ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - GENZ is a Technology Equities fund tracking the MarketVector Digital Native Economy Index, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, GENZ returned 2.68%/yr vs 37.49%/yr for SMH. A 0.51 correlation means they provide meaningful diversification when combined. GENZ charges 0.50%/yr vs 0.35%/yr for SMH.

Performance

GENZ vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Digital Native Economy ETF (GENZ) 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, GENZ achieves a -13.07% return, which is significantly lower than SMH's 74.25% return. Over the past 10 years, GENZ has underperformed SMH with an annualized return of 2.68%, while SMH has yielded a comparatively higher 37.49% annualized return.

GENZ

• 1D: 2.39%
• 1M: -1.11%
• YTD: -13.07%
• 6M: -12.16%
• 1Y: -6.52%
• 3Y*: -4.39%
• 5Y*: -6.69%
• 10Y*: 2.68%

SMH

• 1D: -1.63%
• 1M: 20.06%
• YTD: 74.25%
• 6M: 74.08%
• 1Y: 150.04%
• 3Y*: 63.96%
• 5Y*: 38.76%
• 10Y*: 37.49%

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

GENZ vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
GENZ VanEck Digital Native Economy ETF	-13.07%	4.15%	-1.39%	11.52%	-12.83%	-4.30%	12.72%	30.17%	-26.79%	41.11%
SMH VanEck Semiconductor ETF	74.25%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%

Correlation

The correlation between GENZ and SMH is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (3Y) Calculated over the trailing 3-year period	0.37
Correlation (5Y) Calculated over the trailing 5-year period	0.49
Correlation (10Y) Calculated over the trailing 10-year period	0.51
Correlation (All Time) Calculated using the full available price history since Jan 25, 2008	0.51

Over the past year, the correlation between GENZ and SMH has dropped to 0.23 - well below their long-term average of 0.51, suggesting their price drivers have been diverging.

GENZ vs. SMH - Sectors Allocation Comparison

Sectors	GENZ	SMH
Financial Services	29.3%	-
Communication Services	29.1%	-
Technology	20.6%	100.0%
Consumer Cyclical	20.2%	-
Industrials	0.9%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

GENZ vs. SMH — Risk / Return Rank

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

GENZ

GENZ Risk / Return Rank: 6
GENZ Sharpe Ratio Rank: 6
GENZ Sortino Ratio Rank: 6
GENZ Omega Ratio Rank: 6
GENZ Calmar Ratio Rank: 7
GENZ Martin Ratio Rank: 7

SMH

SMH Risk / Return Rank: 96
SMH Sharpe Ratio Rank: 97
SMH Sortino Ratio Rank: 95
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.

GENZ vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Digital Native Economy ETF (GENZ) 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.

	GENZ	SMH	Difference
Sharpe ratio: Return per unit of total volatility	-0.34	4.94	-5.28
Sortino ratio: Return per unit of downside risk	-0.37	5.05	-5.42
Omega ratio: Gain probability vs. loss probability	0.96	1.69	-0.74
Calmar ratio: Return relative to maximum drawdown	-0.25	10.11	-10.36
Martin ratio: Return relative to average drawdown	-0.46	38.76	-39.22
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

GENZ vs. SMH - Sharpe Ratio Comparison

The current GENZ Sharpe Ratio is -0.34, which is lower than the SMH Sharpe Ratio of 4.94. The chart below compares the historical Sharpe Ratios of GENZ 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

	GENZ	SMH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.34	4.94	-5.28
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.27	1.11	-1.39
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.11	1.15	-1.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.06	0.34	-0.28

Drawdowns

GENZ vs. SMH - Drawdown Comparison

The maximum GENZ drawdown since its inception was -71.12%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for GENZ and SMH.

Drawdown Indicators

	GENZ	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-71.12%	-84.96%	+13.84%
Max Drawdown (1Y) Largest decline over 1 year	-26.40%	-14.93%	-11.47%
Max Drawdown (3Y) Largest decline over 3 years	-26.40%	-35.74%	+9.34%
Max Drawdown (5Y) Largest decline over 5 years	-42.89%	-45.30%	+2.41%
Max Drawdown (10Y) Largest decline over 10 years	-56.43%	-45.30%	-11.13%
Current Drawdown Current decline from peak	-31.75%	-1.63%	-30.12%
Average Drawdown Average peak-to-trough decline	-24.54%	-41.08%	+16.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	14.28%	3.89%	+10.39%

Volatility

GENZ vs. SMH - Volatility Comparison

The current volatility for VanEck Digital Native Economy ETF (GENZ) is 5.94%, while VanEck Semiconductor ETF (SMH) has a volatility of 11.58%. This indicates that GENZ 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

	GENZ	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.94%	11.58%	-5.64%
Volatility (6M) Calculated over the trailing 6-month period	15.21%	24.35%	-9.14%
Volatility (1Y) Calculated over the trailing 1-year period	19.16%	30.57%	-11.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.52%	35.01%	-10.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.11%	32.57%	-7.46%

GENZ vs. SMH - Expense Ratio Comparison

GENZ has a 0.50% expense ratio, which is higher than SMH's 0.35% expense ratio.

Dividends

GENZ vs. SMH - Dividend Comparison

GENZ's dividend yield for the trailing twelve months is around 3.84%, more than SMH's 0.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GENZ VanEck Digital Native Economy ETF	3.84%	3.34%	2.88%	1.68%	0.44%	0.79%	0.47%	2.95%	3.43%	2.31%	3.15%	4.09%
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 GENZ and SMH in my portfolio?

GENZ and SMH have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GENZ or SMH?

SMH has higher volatility (11.58%) compared to GENZ (5.94%). In terms of maximum drawdown, GENZ dropped -71.12% vs SMH's -84.96%.

Which ETF is better, GENZ or SMH?

On 10-year performance, SMH leads with 37.49% vs 2.68% for GENZ. On fees, SMH is cheaper at 0.35% per year. On volatility, GENZ has been the lower-risk option at 5.94%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, GENZ or SMH?

Over the 10-year period, SMH has performed better with a 37.49% return vs 2.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, GENZ or SMH?

SMH is cheaper with a 0.35% expense ratio, compared with 0.50% for GENZ.

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

GENZ has the higher dividend yield at 3.84%, compared with 0.18% for SMH.

What is the main difference between GENZ and SMH?

GENZ is categorized as Technology Equities, while SMH is Semiconductors. GENZ tracks MarketVector Digital Native Economy Index, while SMH tracks MVIS US Listed Semiconductor 25 Index. Their fees differ too: 0.50% for GENZ and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (4.94 vs -0.34), 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.