RCAT vs. SMH

Last updated Jun 4, 2026

RCAT (Red Cat Holdings, 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, RCAT returned 42.10%/yr vs 39.21%/yr for SMH. At a 0.12 correlation, their price movements are largely independent.

Performance

RCAT vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Red Cat Holdings, Inc. (RCAT) and VanEck Semiconductor ETF (SMH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with RCAT having a 73.90% return and SMH slightly higher at 77.13%.

RCAT

• 1D: -7.76%
• 1M: 25.36%
• YTD: 73.90%
• 6M: 82.65%
• 1Y: 98.99%
• 3Y*: 142.10%
• 5Y*: 42.10%
• 10Y*: —

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)

RCAT vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RCAT Red Cat Holdings, Inc.	73.90%	-38.29%	1,360.23%	-6.38%	-54.81%	-30.67%	172.73%	-38.89%	-94.74%	-28.57%
SMH VanEck Semiconductor ETF	77.13%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	8.34%

Correlation

The correlation between RCAT and SMH is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.28
Correlation (3Y) Calculated over the trailing 3-year period	0.18
Correlation (5Y) Calculated over the trailing 5-year period	0.19
Correlation (All Time) Calculated using the full available price history since Sep 25, 2017	0.12

The correlation between RCAT and SMH shifts across timeframes, from 0.12 (all time) to 0.28 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

RCAT vs. SMH — Risk / Return Rank

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

RCAT

RCAT Risk / Return Rank: 69
RCAT Sharpe Ratio Rank: 66
RCAT Sortino Ratio Rank: 73
RCAT Omega Ratio Rank: 68
RCAT Calmar Ratio Rank: 70
RCAT Martin Ratio Rank: 67

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.

RCAT vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Red Cat Holdings, Inc. (RCAT) 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.

	RCAT	SMH	Difference
Sharpe ratio: Return per unit of total volatility	0.83	5.19	-4.36
Sortino ratio: Return per unit of downside risk	1.92	5.22	-3.30
Omega ratio: Gain probability vs. loss probability	1.22	1.72	-0.51
Calmar ratio: Return relative to maximum drawdown	1.66	10.59	-8.94
Martin ratio: Return relative to average drawdown	3.34	40.63	-37.29
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

RCAT vs. SMH - Sharpe Ratio Comparison

The current RCAT Sharpe Ratio is 0.83, which is lower than the SMH Sharpe Ratio of 5.19. The chart below compares the historical Sharpe Ratios of RCAT 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

	RCAT	SMH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.83	5.19	-4.36
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.37	1.13	-0.76
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.16	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.06	0.34	-0.40

Drawdowns

RCAT vs. SMH - Drawdown Comparison

The maximum RCAT drawdown since its inception was -99.76%, which is greater than SMH's maximum drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for RCAT and SMH.

Drawdown Indicators

	RCAT	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-99.76%	-84.96%	-14.80%
Max Drawdown (1Y) Largest decline over 1 year	-60.08%	-14.93%	-45.15%
Max Drawdown (3Y) Largest decline over 3 years	-67.16%	-35.74%	-31.42%
Max Drawdown (5Y) Largest decline over 5 years	-92.25%	-45.30%	-46.95%
Max Drawdown (10Y) Largest decline over 10 years	—	-45.30%	—
Current Drawdown Current decline from peak	-91.73%	0.00%	-91.73%
Average Drawdown Average peak-to-trough decline	-95.53%	-41.09%	-54.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	29.75%	3.89%	+25.86%

Volatility

RCAT vs. SMH - Volatility Comparison

Red Cat Holdings, Inc. (RCAT) has a higher volatility of 38.59% compared to VanEck Semiconductor ETF (SMH) at 11.47%. This indicates that RCAT'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

	RCAT	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	38.59%	11.47%	+27.12%
Volatility (6M) Calculated over the trailing 6-month period	83.20%	24.29%	+58.91%
Volatility (1Y) Calculated over the trailing 1-year period	120.70%	30.56%	+90.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	114.95%	35.01%	+79.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	239.60%	32.57%	+207.03%

Dividends

RCAT vs. SMH - Dividend Comparison

RCAT 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
RCAT Red Cat Holdings, Inc.	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 RCAT and SMH in my portfolio?

RCAT and SMH have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RCAT or SMH?

RCAT has higher volatility (38.59%) compared to SMH (11.47%). In terms of maximum drawdown, RCAT dropped -99.76% vs SMH's -84.96%.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (5.19 vs 0.83), 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.