IGV vs. SMH

Last updated Aug 4, 2026

IGV (iShares Expanded Tech-Software Sector ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - IGV is a Technology Equities fund tracking the S&P North American Expanded Technology Software Index, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, IGV returned 16.04%/yr vs 33.99%/yr for SMH. Their 0.71 correlation means they have sometimes moved together and sometimes differently. IGV charges 0.39%/yr vs 0.35%/yr for SMH.

Performance

IGV vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Expanded Tech-Software Sector ETF (IGV) 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, IGV achieves a -7.81% return, which is significantly lower than SMH's 51.46% return. Over the past 10 years, IGV has underperformed SMH with an annualized return of 16.04%, while SMH has yielded a comparatively higher 33.99% annualized return.

IGV

• 1D: 3.00%
• 1M: 4.11%
• 6M: 8.85%
• YTD: -7.81%
• 1Y: -10.30%
• 3Y*: 12.00%
• 5Y*: 3.63%
• 10Y*: 16.04%
• ALL TIME*: 9.49%

SMH

• 1D: 0.91%
• 1M: -7.91%
• 6M: 33.70%
• YTD: 51.46%
• 1Y: 92.69%
• 3Y*: 53.04%
• 5Y*: 32.99%
• 10Y*: 33.99%
• ALL TIME*: 11.09%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
IGV iShares Expanded Tech-Software Sector ETF	$1.47B	$1.27B	$1.69B
SMH VanEck Semiconductor ETF	$8.29B	$7.23B	$7.12B

IGV vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IGV iShares Expanded Tech-Software Sector ETF	-7.81%	5.56%	23.41%	58.56%	-35.65%	12.30%	52.86%	34.33%	12.44%	42.16%
SMH VanEck Semiconductor ETF	51.46%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%

Correlation

The correlation between IGV and SMH is 0.26, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.26
Correlation (3Y) Balances recent behavior with more history.	0.52
Correlation (5Y) Shows whether the relationship held over a longer period.	0.65
Correlation (10Y) Provides a long-term view across more market conditions.	0.67
Correlation (All Time) Calculated using the full available price history since Jul 13, 2001	0.71

Over the past year, the correlation between IGV and SMH has dropped to 0.26 - well below their long-term average of 0.71, suggesting their price drivers have been diverging.

IGV vs. SMH - Sectors Allocation Comparison

Sectors	IGV	SMH
Technology	89.3%	100.0%
Communication Services	8.3%	-
Financial Services	1.9%	-
Consumer Cyclical	0.3%	-
Industrials	0.1%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

IGV vs. SMH — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

IGV

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

SMH

SMH Risk / Return Rank: 88
SMH Sharpe Ratio Rank: 92
SMH Sortino Ratio Rank: 84
SMH Omega Ratio Rank: 85
SMH Calmar Ratio Rank: 89
SMH Martin Ratio Rank: 91

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

IGV vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Expanded Tech-Software Sector ETF (IGV) 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.

	IGV	SMH	Difference
Sharpe ratio: Return per unit of total volatility	-0.35	2.43	-2.78
Sortino ratio: Return per unit of downside risk	-0.31	2.80	-3.11
Omega ratio: Gain probability vs. loss probability	0.96	1.37	-0.41
Calmar ratio: Return relative to maximum drawdown	-0.28	3.79	-4.07
Martin ratio: Return relative to average drawdown	-0.53	15.18	-15.72

IGV vs. SMH - Sharpe Ratio Comparison

The current IGV Sharpe Ratio is -0.35, which is lower than the SMH Sharpe Ratio of 2.43. The chart below compares the historical Sharpe Ratios of IGV 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

IGV vs. SMH - Drawdown Comparison

The maximum IGV drawdown since its inception was -63.45%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for IGV and SMH.

Drawdown Indicators

	IGV	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-63.45%	-84.96%	+21.51%
Max Drawdown (1Y) Largest decline over 1 year	-36.61%	-24.62%	-11.99%
Max Drawdown (3Y) Largest decline over 3 years	-36.61%	-35.74%	-0.87%
Max Drawdown (5Y) Largest decline over 5 years	-45.85%	-45.30%	-0.55%
Max Drawdown (10Y) Largest decline over 10 years	-45.85%	-45.30%	-0.55%
Current Drawdown Current decline from peak	-17.28%	-18.46%	+1.18%
Average Drawdown Average peak-to-trough decline	-14.49%	-40.89%	+26.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	19.38%	6.13%	+13.25%

Volatility

IGV vs. SMH - Volatility Comparison

The current volatility for iShares Expanded Tech-Software Sector ETF (IGV) is 7.40%, while VanEck Semiconductor ETF (SMH) has a volatility of 14.15%. This indicates that IGV 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

	IGV	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.40%	14.15%	-6.75%
Volatility (6M) Calculated over the trailing 6-month period	25.09%	32.94%	-7.85%
Volatility (1Y) Calculated over the trailing 1-year period	29.25%	38.50%	-9.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.21%	36.51%	-8.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.47%	33.33%	-6.86%

IGV vs. SMH - Expense Ratio Comparison

IGV has a 0.39% expense ratio, which is higher than SMH's 0.35% expense ratio.

Dividends

IGV vs. SMH - Dividend Comparison

IGV's dividend yield for the trailing twelve months is around 0.02%, less than SMH's 0.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IGV iShares Expanded Tech-Software Sector ETF	0.02%	0.00%	0.00%	0.01%	0.01%	0.00%	0.35%	0.02%	0.16%	0.09%	0.82%	0.22%
SMH VanEck Semiconductor ETF	0.20%	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 IGV and SMH in my portfolio?

IGV and SMH have a correlation of 0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IGV or SMH?

SMH has higher volatility (14.15%) compared to IGV (7.40%). In terms of maximum drawdown, IGV dropped -63.45% vs SMH's -84.96%.

Which ETF is better, IGV or SMH?

On 10-year performance, SMH leads with 33.99% vs 16.04% for IGV. On fees, SMH is cheaper at 0.35% per year. On volatility, IGV has been the lower-risk option at 7.40%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IGV or SMH?

Over the 10-year period, SMH has performed better with a 33.99% return vs 16.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IGV or SMH?

SMH is cheaper with a 0.35% expense ratio, compared with 0.39% for IGV.

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

SMH has the higher dividend yield at 0.20%, compared with 0.02% for IGV.

What is the main difference between IGV and SMH?

IGV is categorized as Technology Equities, while SMH is Semiconductors. IGV tracks S&P North American Expanded Technology Software Index, while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: iShares and VanEck. Their fees differ too: 0.39% for IGV and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (2.43 vs -0.35), 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.