KREF vs. SMH

Last updated Jul 14, 2026

KREF (KKR Real Estate Finance Trust Inc.) is a stock, while SMH (VanEck Semiconductor ETF) is Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Over the past 5 years, KREF returned -9.70%/yr vs 36.02%/yr for SMH. At a 0.27 correlation, their price movements are largely independent.

Performance

KREF vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in KKR Real Estate Finance Trust Inc. (KREF) 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, KREF achieves a -5.53% return, which is significantly lower than SMH's 62.61% return.

KREF

• 1D: -0.14%
• 1M: 3.12%
• 6M: -3.06%
• YTD: -5.53%
• 1Y: -10.88%
• 3Y*: -7.55%
• 5Y*: -9.70%
• 10Y*: —

SMH

• 1D: -4.16%
• 1M: -5.54%
• 6M: 49.91%
• YTD: 62.61%
• 1Y: 104.33%
• 3Y*: 55.82%
• 5Y*: 36.02%
• 10Y*: 35.93%

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

KREF vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KREF KKR Real Estate Finance Trust Inc.	-5.53%	-9.25%	-15.80%	9.15%	-25.89%	27.86%	-2.82%	16.15%	4.26%	-0.09%
SMH VanEck Semiconductor ETF	62.61%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	23.27%

Correlation

The correlation between KREF and SMH is 0.13, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.13
Correlation (3Y) Calculated over the trailing 3-year period	0.21
Correlation (5Y) Calculated over the trailing 5-year period	0.28
Correlation (All Time) Calculated using the full available price history since May 5, 2017	0.27

The correlation between KREF and SMH shifts across timeframes, from 0.13 (1 year) to 0.28 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

KREF vs. SMH — Risk / Return Rank

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

KREF

KREF Risk / Return Rank: 30
KREF Sharpe Ratio Rank: 29
KREF Sortino Ratio Rank: 27
KREF Omega Ratio Rank: 27
KREF Calmar Ratio Rank: 34
KREF Martin Ratio Rank: 34

SMH

SMH Risk / Return Rank: 92
SMH Sharpe Ratio Rank: 94
SMH Sortino Ratio Rank: 87
SMH Omega Ratio Rank: 88
SMH Calmar Ratio Rank: 96
SMH Martin Ratio Rank: 95

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.

KREF vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for KKR Real Estate Finance Trust Inc. (KREF) 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.

	KREF	SMH	Difference
Sharpe ratio: Return per unit of total volatility	-0.36	2.86	-3.22
Sortino ratio: Return per unit of downside risk	-0.31	3.14	-3.45
Omega ratio: Gain probability vs. loss probability	0.96	1.43	-0.47
Calmar ratio: Return relative to maximum drawdown	-0.32	7.03	-7.34
Martin ratio: Return relative to average drawdown	-0.59	22.83	-23.41

KREF vs. SMH - Sharpe Ratio Comparison

The current KREF Sharpe Ratio is -0.36, which is lower than the SMH Sharpe Ratio of 2.86. The chart below compares the historical Sharpe Ratios of KREF 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

KREF vs. SMH - Drawdown Comparison

The maximum KREF drawdown since its inception was -57.33%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for KREF and SMH.

Drawdown Indicators

	KREF	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-57.33%	-84.96%	+27.63%
Max Drawdown (1Y) Largest decline over 1 year	-34.53%	-14.93%	-19.60%
Max Drawdown (3Y) Largest decline over 3 years	-44.87%	-35.74%	-9.13%
Max Drawdown (5Y) Largest decline over 5 years	-57.33%	-45.30%	-12.03%
Max Drawdown (10Y) Largest decline over 10 years	—	-45.30%	—
Current Drawdown Current decline from peak	-45.68%	-12.45%	-33.23%
Average Drawdown Average peak-to-trough decline	-19.82%	-40.94%	+21.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	18.60%	4.59%	+14.01%

Volatility

KREF vs. SMH - Volatility Comparison

The current volatility for KKR Real Estate Finance Trust Inc. (KREF) is 9.87%, while VanEck Semiconductor ETF (SMH) has a volatility of 18.45%. This indicates that KREF 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

	KREF	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.87%	18.45%	-8.58%
Volatility (6M) Calculated over the trailing 6-month period	25.35%	31.29%	-5.94%
Volatility (1Y) Calculated over the trailing 1-year period	30.11%	36.76%	-6.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.10%	36.19%	-6.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	30.72%	33.14%	-2.42%

Dividends

KREF vs. SMH - Dividend Comparison

KREF's dividend yield for the trailing twelve months is around 11.56%, more than SMH's 0.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KREF KKR Real Estate Finance Trust Inc.	11.56%	12.17%	9.90%	13.00%	12.32%	9.53%	9.60%	8.42%	8.83%	4.95%	0.00%	0.00%
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 KREF and SMH in my portfolio?

KREF and SMH have a correlation of 0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KREF or SMH?

SMH has higher volatility (18.45%) compared to KREF (9.87%). In terms of maximum drawdown, KREF dropped -57.33% vs SMH's -84.96%.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (2.86 vs -0.36), 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.