NVDU vs. SMH

Last updated Jun 23, 2026

NVDU (Direxion Daily NVDA Bull 2X Shares ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - NVDU is a Leveraged Equities fund actively managed by Direxion, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. NVDU is actively managed, while SMH is passively managed. Over the past year, NVDU returned 67.40% vs 157.81% for SMH. A 0.78 correlation means they provide meaningful diversification when combined. NVDU charges 1.04%/yr vs 0.35%/yr for SMH.

Performance

NVDU vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily NVDA Bull 2X Shares ETF (NVDU) 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, NVDU achieves a 11.81% return, which is significantly lower than SMH's 85.74% return.

NVDU

• 1D: -1.73%
• 1M: -8.04%
• YTD: 11.81%
• 6M: 14.78%
• 1Y: 67.40%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SMH

• 1D: 1.37%
• 1M: 16.07%
• YTD: 85.74%
• 6M: 85.96%
• 1Y: 157.81%
• 3Y*: 66.26%
• 5Y*: 40.65%
• 10Y*: 38.85%

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

NVDU vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
NVDU Direxion Daily NVDA Bull 2X Shares ETF	11.81%	33.65%	289.29%	12.08%
SMH VanEck Semiconductor ETF	85.74%	49.17%	39.10%	17.79%

Correlation

The correlation between NVDU and SMH is 0.64, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.64
Correlation (All Time) Calculated using the full available price history since Sep 13, 2023	0.78

The correlation between NVDU and SMH shifts across timeframes, from 0.64 (1 year) to 0.78 (all time), reflecting how their relationship changes across market environments.

NVDU vs. SMH - Sectors Allocation Comparison

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

Return for Risk

NVDU vs. SMH — Risk / Return Rank

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

NVDU

NVDU Risk / Return Rank: 30
NVDU Sharpe Ratio Rank: 28
NVDU Sortino Ratio Rank: 31
NVDU Omega Ratio Rank: 29
NVDU Calmar Ratio Rank: 33
NVDU Martin Ratio Rank: 27

SMH

SMH Risk / Return Rank: 96
SMH Sharpe Ratio Rank: 97
SMH Sortino Ratio Rank: 94
SMH Omega Ratio Rank: 94
SMH Calmar Ratio Rank: 97
SMH Martin Ratio Rank: 97

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.

NVDU vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily NVDA Bull 2X Shares ETF (NVDU) 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.

	NVDU	SMH	Difference
Sharpe ratio: Return per unit of total volatility	0.97	4.66	-3.69
Sortino ratio: Return per unit of downside risk	1.62	4.60	-2.98
Omega ratio: Gain probability vs. loss probability	1.19	1.66	-0.46
Calmar ratio: Return relative to maximum drawdown	1.60	10.63	-9.03
Martin ratio: Return relative to average drawdown	3.52	38.91	-35.39

NVDU vs. SMH - Sharpe Ratio Comparison

The current NVDU Sharpe Ratio is 0.97, which is lower than the SMH Sharpe Ratio of 4.66. The chart below compares the historical Sharpe Ratios of NVDU 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

NVDU vs. SMH - Drawdown Comparison

The maximum NVDU drawdown since its inception was -67.27%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for NVDU and SMH.

Drawdown Indicators

	NVDU	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-67.27%	-84.96%	+17.69%
Max Drawdown (1Y) Largest decline over 1 year	-42.27%	-14.93%	-27.34%
Max Drawdown (3Y) Largest decline over 3 years	—	-35.74%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-45.30%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-45.30%	—
Current Drawdown Current decline from peak	-23.85%	0.00%	-23.85%
Average Drawdown Average peak-to-trough decline	-18.90%	-41.01%	+22.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	19.21%	4.07%	+15.14%

Volatility

NVDU vs. SMH - Volatility Comparison

Direxion Daily NVDA Bull 2X Shares ETF (NVDU) has a higher volatility of 25.10% compared to VanEck Semiconductor ETF (SMH) at 17.29%. This indicates that NVDU's price experiences larger fluctuations and is considered to be riskier than SMH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NVDU	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	25.10%	17.29%	+7.81%
Volatility (6M) Calculated over the trailing 6-month period	52.56%	28.18%	+24.38%
Volatility (1Y) Calculated over the trailing 1-year period	70.05%	34.14%	+35.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	90.93%	35.68%	+55.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	90.93%	32.95%	+57.98%

NVDU vs. SMH - Expense Ratio Comparison

NVDU has a 1.04% expense ratio, which is higher than SMH's 0.35% expense ratio.

Dividends

NVDU vs. SMH - Dividend Comparison

NVDU's dividend yield for the trailing twelve months is around 5.18%, more than SMH's 0.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NVDU Direxion Daily NVDA Bull 2X Shares ETF	5.18%	5.68%	16.85%	0.63%	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 NVDU and SMH in my portfolio?

NVDU and SMH have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NVDU or SMH?

NVDU has higher volatility (25.10%) compared to SMH (17.29%). In terms of maximum drawdown, NVDU dropped -67.27% vs SMH's -84.96%.

Which ETF is better, NVDU or SMH?

On 1-year performance, SMH leads with 157.81% vs 67.40% for NVDU. On fees, SMH is cheaper at 0.35% per year. On volatility, SMH has been the lower-risk option at 17.29%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, NVDU or SMH?

Over the 1-year period, SMH has performed better with a 157.81% return vs 67.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, NVDU or SMH?

SMH is cheaper with a 0.35% expense ratio, compared with 1.04% for NVDU.

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

NVDU has the higher dividend yield at 5.18%, compared with 0.17% for SMH.

What is the main difference between NVDU and SMH?

NVDU is categorized as Leveraged Equities, while SMH is Semiconductors. They also come from different issuers: Direxion and VanEck. Their fees differ too: 1.04% for NVDU and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (4.66 vs 0.97), 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.