IGPT vs. SMH

Last updated Jul 17, 2026

IGPT (Invesco AI and Next Gen Software ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - IGPT is a Technology Equities fund tracking the STOXX World AC NexGen Software Development Index, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, IGPT returned 20.12%/yr vs 35.15%/yr for SMH. A 0.74 correlation means they provide meaningful diversification when combined. IGPT charges 0.56%/yr vs 0.35%/yr for SMH.

Performance

IGPT vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco AI and Next Gen Software ETF (IGPT) 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, IGPT achieves a 50.90% return, which is significantly lower than SMH's 57.98% return. Over the past 10 years, IGPT has underperformed SMH with an annualized return of 20.12%, while SMH has yielded a comparatively higher 35.15% annualized return.

IGPT

• 1D: -4.85%
• 1M: -10.22%
• 6M: 44.02%
• YTD: 50.90%
• 1Y: 80.41%
• 3Y*: 33.11%
• 5Y*: 13.37%
• 10Y*: 20.12%

SMH

• 1D: -3.70%
• 1M: -7.64%
• 6M: 43.52%
• YTD: 57.98%
• 1Y: 97.28%
• 3Y*: 53.38%
• 5Y*: 36.57%
• 10Y*: 35.15%

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

IGPT vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IGPT Invesco AI and Next Gen Software ETF	50.90%	31.55%	17.15%	27.29%	-27.73%	-11.79%	54.31%	35.06%	16.38%	34.60%
SMH VanEck Semiconductor ETF	57.98%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%

Correlation

The correlation between IGPT and SMH 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	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (10Y) Calculated over the trailing 10-year period	0.77
Correlation (All Time) Calculated using the full available price history since Jun 23, 2005	0.74

The correlation between IGPT and SMH shifts across timeframes, from 0.74 (all time) to 0.91 (1 year), reflecting how their relationship changes across market environments.

IGPT vs. SMH - Sectors Allocation Comparison

Sectors	IGPT	SMH
Technology	78.9%	100.0%
Communication Services	13.2%	-
Real Estate	2.9%	-
Healthcare	2.5%	-
Industrials	2.5%	-
Financial Services	0.1%	-
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Utilities	-	-

Return for Risk

IGPT vs. SMH — Risk / Return Rank

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

IGPT

IGPT Risk / Return Rank: 85
IGPT Sharpe Ratio Rank: 88
IGPT Sortino Ratio Rank: 77
IGPT Omega Ratio Rank: 80
IGPT Calmar Ratio Rank: 92
IGPT Martin Ratio Rank: 89

SMH

SMH Risk / Return Rank: 90
SMH Sharpe Ratio Rank: 93
SMH Sortino Ratio Rank: 83
SMH Omega Ratio Rank: 85
SMH Calmar Ratio Rank: 96
SMH Martin Ratio Rank: 94

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.

IGPT vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco AI and Next Gen Software ETF (IGPT) 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.

	IGPT	SMH	Difference
Sharpe ratio: Return per unit of total volatility	2.28	2.65	-0.36
Sortino ratio: Return per unit of downside risk	2.75	2.97	-0.21
Omega ratio: Gain probability vs. loss probability	1.38	1.41	-0.03
Calmar ratio: Return relative to maximum drawdown	4.76	6.54	-1.79
Martin ratio: Return relative to average drawdown	15.62	20.41	-4.78

IGPT vs. SMH - Sharpe Ratio Comparison

The current IGPT Sharpe Ratio is 2.28, which is comparable to the SMH Sharpe Ratio of 2.65. The chart below compares the historical Sharpe Ratios of IGPT 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

IGPT vs. SMH - Drawdown Comparison

The maximum IGPT drawdown since its inception was -50.14%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for IGPT and SMH.

Drawdown Indicators

	IGPT	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-50.14%	-84.96%	+34.82%
Max Drawdown (1Y) Largest decline over 1 year	-16.99%	-14.95%	-2.04%
Max Drawdown (3Y) Largest decline over 3 years	-29.30%	-35.74%	+6.44%
Max Drawdown (5Y) Largest decline over 5 years	-42.87%	-45.30%	+2.43%
Max Drawdown (10Y) Largest decline over 10 years	-50.14%	-45.30%	-4.84%
Current Drawdown Current decline from peak	-16.99%	-14.95%	-2.04%
Average Drawdown Average peak-to-trough decline	-11.94%	-40.93%	+28.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.16%	4.78%	+0.38%

Volatility

IGPT vs. SMH - Volatility Comparison

Invesco AI and Next Gen Software ETF (IGPT) and VanEck Semiconductor ETF (SMH) have volatilities of 16.30% and 17.01%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IGPT	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.30%	17.01%	-0.71%
Volatility (6M) Calculated over the trailing 6-month period	31.59%	31.61%	-0.02%
Volatility (1Y) Calculated over the trailing 1-year period	35.41%	36.97%	-1.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.23%	36.21%	-6.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.11%	33.16%	-6.05%

IGPT vs. SMH - Expense Ratio Comparison

IGPT has a 0.56% expense ratio, which is higher than SMH's 0.35% expense ratio.

Dividends

IGPT vs. SMH - Dividend Comparison

IGPT's dividend yield for the trailing twelve months is around 0.01%, less than SMH's 0.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IGPT Invesco AI and Next Gen Software ETF	0.01%	0.04%	0.00%	0.00%	1.41%	6.21%	0.04%	0.05%	0.00%	0.00%	0.03%	0.15%
SMH VanEck Semiconductor ETF	0.19%	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 IGPT and SMH in my portfolio?

With a correlation of 0.91, IGPT and SMH 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, IGPT or SMH?

SMH has higher volatility (17.01%) compared to IGPT (16.30%). In terms of maximum drawdown, IGPT dropped -50.14% vs SMH's -84.96%.

Which ETF is better, IGPT or SMH?

On 10-year performance, SMH leads with 35.15% vs 20.12% for IGPT. On fees, SMH is cheaper at 0.35% per year. On volatility, IGPT has been the lower-risk option at 16.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IGPT or SMH?

Over the 10-year period, SMH has performed better with a 35.15% return vs 20.12%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IGPT or SMH?

SMH is cheaper with a 0.35% expense ratio, compared with 0.56% for IGPT.

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

SMH has the higher dividend yield at 0.19%, compared with 0.01% for IGPT.

What is the main difference between IGPT and SMH?

IGPT is categorized as Technology Equities, while SMH is Semiconductors. IGPT tracks STOXX World AC NexGen Software Development Index, while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: Invesco and VanEck. Their fees differ too: 0.56% for IGPT and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (2.65 vs 2.28), 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.