IPAY vs. SMH

Last updated Jun 4, 2026

IPAY (ETFMG Prime Mobile Payments ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - IPAY is a Technology Equities fund tracking the Prime Mobile Payments Index, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, IPAY returned 5.98%/yr vs 37.68%/yr for SMH. A 0.62 correlation means they provide meaningful diversification when combined. IPAY charges 0.75%/yr vs 0.35%/yr for SMH.

Performance

IPAY vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ETFMG Prime Mobile Payments ETF (IPAY) 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, IPAY achieves a -16.45% return, which is significantly lower than SMH's 77.13% return. Over the past 10 years, IPAY has underperformed SMH with an annualized return of 5.98%, while SMH has yielded a comparatively higher 37.68% annualized return.

IPAY

• 1D: -4.17%
• 1M: -9.09%
• YTD: -16.45%
• 6M: -16.03%
• 1Y: -23.21%
• 3Y*: 1.92%
• 5Y*: -8.70%
• 10Y*: 5.98%

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)

IPAY vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IPAY ETFMG Prime Mobile Payments ETF	-16.45%	-9.55%	25.88%	18.21%	-32.38%	-12.72%	34.22%	41.80%	0.17%	36.34%
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 IPAY and SMH is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
Correlation (3Y) Calculated over the trailing 3-year period	0.46
Correlation (5Y) Calculated over the trailing 5-year period	0.59
Correlation (10Y) Calculated over the trailing 10-year period	0.62
Correlation (All Time) Calculated using the full available price history since Jul 17, 2015	0.62

Over the past year, the correlation between IPAY and SMH has dropped to 0.31 - well below their long-term average of 0.62, suggesting their price drivers have been diverging.

IPAY vs. SMH - Sectors Allocation Comparison

Sectors	IPAY	SMH
Technology	54.6%	100.0%
Financial Services	41.3%	-
Industrials	4.1%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

IPAY vs. SMH — Risk / Return Rank

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

IPAY

IPAY Risk / Return Rank: 2
IPAY Sharpe Ratio Rank: 1
IPAY Sortino Ratio Rank: 2
IPAY Omega Ratio Rank: 2
IPAY Calmar Ratio Rank: 3
IPAY Martin Ratio Rank: 2

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.

IPAY vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ETFMG Prime Mobile Payments ETF (IPAY) 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.

	IPAY	SMH	Difference
Sharpe ratio: Return per unit of total volatility	-0.98	5.19	-6.17
Sortino ratio: Return per unit of downside risk	-1.26	5.22	-6.47
Omega ratio: Gain probability vs. loss probability	0.84	1.72	-0.88
Calmar ratio: Return relative to maximum drawdown	-0.74	10.59	-11.34
Martin ratio: Return relative to average drawdown	-1.42	40.63	-42.05
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IPAY vs. SMH - Sharpe Ratio Comparison

The current IPAY Sharpe Ratio is -0.98, which is lower than the SMH Sharpe Ratio of 5.19. The chart below compares the historical Sharpe Ratios of IPAY 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

	IPAY	SMH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.98	5.19	-6.17
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.34	1.13	-1.46
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.24	1.16	-0.92
Sharpe Ratio (All Time) Calculated using the full available price history	0.21	0.34	-0.13

Drawdowns

IPAY vs. SMH - Drawdown Comparison

The maximum IPAY drawdown since its inception was -51.75%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for IPAY and SMH.

Drawdown Indicators

	IPAY	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-51.75%	-84.96%	+33.21%
Max Drawdown (1Y) Largest decline over 1 year	-31.31%	-14.93%	-16.38%
Max Drawdown (3Y) Largest decline over 3 years	-32.74%	-35.74%	+3.00%
Max Drawdown (5Y) Largest decline over 5 years	-51.49%	-45.30%	-6.19%
Max Drawdown (10Y) Largest decline over 10 years	-51.75%	-45.30%	-6.45%
Current Drawdown Current decline from peak	-39.51%	0.00%	-39.51%
Average Drawdown Average peak-to-trough decline	-16.67%	-41.09%	+24.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	16.32%	3.89%	+12.43%

Volatility

IPAY vs. SMH - Volatility Comparison

The current volatility for ETFMG Prime Mobile Payments ETF (IPAY) is 6.51%, while VanEck Semiconductor ETF (SMH) has a volatility of 11.47%. This indicates that IPAY 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

	IPAY	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.51%	11.47%	-4.96%
Volatility (6M) Calculated over the trailing 6-month period	18.19%	24.29%	-6.10%
Volatility (1Y) Calculated over the trailing 1-year period	23.70%	30.56%	-6.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.04%	35.01%	-8.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.38%	32.57%	-7.19%

IPAY vs. SMH - Expense Ratio Comparison

IPAY has a 0.75% expense ratio, which is higher than SMH's 0.35% expense ratio.

Dividends

IPAY vs. SMH - Dividend Comparison

IPAY's dividend yield for the trailing twelve months is around 0.94%, more than SMH's 0.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IPAY ETFMG Prime Mobile Payments ETF	0.94%	0.79%	0.77%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 IPAY and SMH in my portfolio?

IPAY and SMH have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IPAY or SMH?

SMH has higher volatility (11.47%) compared to IPAY (6.51%). In terms of maximum drawdown, IPAY dropped -51.75% vs SMH's -84.96%.

Which ETF is better, IPAY or SMH?

On 10-year performance, SMH leads with 37.68% vs 5.98% for IPAY. On fees, SMH is cheaper at 0.35% per year. On volatility, IPAY has been the lower-risk option at 6.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IPAY or SMH?

Over the 10-year period, SMH has performed better with a 37.68% return vs 5.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IPAY or SMH?

SMH is cheaper with a 0.35% expense ratio, compared with 0.75% for IPAY.

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

IPAY has the higher dividend yield at 0.94%, compared with 0.17% for SMH.

What is the main difference between IPAY and SMH?

IPAY is categorized as Technology Equities, while SMH is Semiconductors. IPAY tracks Prime Mobile Payments Index, while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: ETFMG and VanEck. Their fees differ too: 0.75% for IPAY and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (5.19 vs -0.98), 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.