NVMI vs. SMH

Last updated Jun 23, 2026

NVMI (Nova Ltd) is a stock, while SMH (VanEck Semiconductor ETF) is Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Over the past 10 years, NVMI returned 48.51%/yr vs 38.85%/yr for SMH. At a 0.41 correlation, their price movements are largely independent.

Performance

NVMI vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Nova Ltd (NVMI) 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, NVMI achieves a 77.56% return, which is significantly lower than SMH's 85.74% return. Over the past 10 years, NVMI has outperformed SMH with an annualized return of 48.51%, while SMH has yielded a comparatively lower 38.85% annualized return.

NVMI

• 1D: 1.35%
• 1M: 15.81%
• YTD: 77.56%
• 6M: 75.36%
• 1Y: 152.24%
• 3Y*: 72.97%
• 5Y*: 42.28%
• 10Y*: 48.51%

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)

NVMI vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NVMI Nova Ltd	77.56%	66.74%	43.35%	68.21%	-44.25%	107.51%	86.62%	66.07%	-12.08%	96.88%
SMH VanEck Semiconductor ETF	85.74%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%

Correlation

The correlation between NVMI and SMH is 0.79, 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	0.79
Correlation (3Y) Calculated over the trailing 3-year period	0.73
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.73
Correlation (All Time) Calculated using the full available price history since Jun 5, 2000	0.41

Over the past year, NVMI and SMH have become more correlated (0.79) than their long-term average of 0.41, meaning their price movements have been converging.

Return for Risk

NVMI vs. SMH — Risk / Return Rank

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

NVMI

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

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.

NVMI vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Nova Ltd (NVMI) 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.

	NVMI	SMH	Difference
Sharpe ratio: Return per unit of total volatility	2.81	4.66	-1.85
Sortino ratio: Return per unit of downside risk	2.92	4.60	-1.69
Omega ratio: Gain probability vs. loss probability	1.39	1.66	-0.27
Calmar ratio: Return relative to maximum drawdown	7.10	10.63	-3.53
Martin ratio: Return relative to average drawdown	18.88	38.91	-20.03

NVMI vs. SMH - Sharpe Ratio Comparison

The current NVMI Sharpe Ratio is 2.81, which is lower than the SMH Sharpe Ratio of 4.66. The chart below compares the historical Sharpe Ratios of NVMI 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

NVMI vs. SMH - Drawdown Comparison

The maximum NVMI drawdown since its inception was -98.22%, which is greater than SMH's maximum drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for NVMI and SMH.

Drawdown Indicators

	NVMI	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-98.22%	-84.96%	-13.26%
Max Drawdown (1Y) Largest decline over 1 year	-21.56%	-14.93%	-6.63%
Max Drawdown (3Y) Largest decline over 3 years	-40.79%	-35.74%	-5.05%
Max Drawdown (5Y) Largest decline over 5 years	-52.76%	-45.30%	-7.46%
Max Drawdown (10Y) Largest decline over 10 years	-52.76%	-45.30%	-7.46%
Current Drawdown Current decline from peak	-3.72%	0.00%	-3.72%
Average Drawdown Average peak-to-trough decline	-51.72%	-41.01%	-10.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.10%	4.07%	+4.03%

Volatility

NVMI vs. SMH - Volatility Comparison

Nova Ltd (NVMI) has a higher volatility of 22.15% compared to VanEck Semiconductor ETF (SMH) at 17.29%. This indicates that NVMI'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

	NVMI	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	22.15%	17.29%	+4.86%
Volatility (6M) Calculated over the trailing 6-month period	42.26%	28.18%	+14.08%
Volatility (1Y) Calculated over the trailing 1-year period	54.62%	34.14%	+20.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	47.75%	35.68%	+12.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	43.57%	32.95%	+10.62%

Dividends

NVMI vs. SMH - Dividend Comparison

NVMI has not paid dividends to shareholders, while SMH's dividend yield for the trailing twelve months is around 0.17%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NVMI Nova Ltd	0.00%	0.00%	0.00%	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 NVMI and SMH in my portfolio?

NVMI and SMH have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NVMI or SMH?

NVMI has higher volatility (22.15%) compared to SMH (17.29%). In terms of maximum drawdown, NVMI dropped -98.22% vs SMH's -84.96%.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (4.66 vs 2.81), 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.