SMGB.L vs. DFNS.L

Last updated Jun 5, 2026

SMGB.L (VanEck Semiconductor UCITS ETF) and DFNS.L (VanEck Defense UCITS ETF) are both exchange-traded funds - SMGB.L is a Semiconductors fund tracking the MSCI World/Information Tech NR USD, while DFNS.L is a Aerospace & Defense fund tracking the MarketVector™ Global Defense Industry Index. Both are passively managed. Over the past 3 years, SMGB.L returned 57.16%/yr vs 39.35%/yr for DFNS.L. At a 0.35 correlation, their price movements are largely independent. SMGB.L charges 0.35%/yr vs 0.55%/yr for DFNS.L.

Performance

SMGB.L vs. DFNS.L - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in VanEck Semiconductor UCITS ETF (SMGB.L) and VanEck Defense UCITS ETF (DFNS.L). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

SMGB.L is traded in GBP, while DFNS.L is traded in USD. To make them comparable, the DFNS.L values have been converted to GBP using the latest available exchange rates.

Returns By Period

In the year-to-date period, SMGB.L achieves a 85.49% return, which is significantly higher than DFNS.L's 3.81% return.

SMGB.L

• 1D: -2.49%
• 1M: 23.49%
• YTD: 85.49%
• 6M: 84.69%
• 1Y: 173.74%
• 3Y*: 57.16%
• 5Y*: 38.39%
• 10Y*: —

DFNS.L

• 1D: 0.49%
• 1M: -3.47%
• YTD: 3.81%
• 6M: 6.00%
• 1Y: 17.26%
• 3Y*: 39.35%
• 5Y*: —
• 10Y*: —

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

SMGB.L vs. DFNS.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
SMGB.L VanEck Semiconductor UCITS ETF	85.49%	38.79%	26.31%	37.31%
DFNS.L VanEck Defense UCITS ETF	3.81%	56.23%	46.26%	23.06%

Correlation

The correlation between SMGB.L and DFNS.L is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.24
Correlation (3Y) Calculated over the trailing 3-year period	0.35
Correlation (All Time) Calculated using the full available price history since Apr 6, 2023	0.35

The correlation between SMGB.L and DFNS.L shifts across timeframes, from 0.24 (1 year) to 0.35 (all time), reflecting how their relationship changes across market environments.

Return for Risk

SMGB.L vs. DFNS.L — Risk / Return Rank

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

SMGB.L

SMGB.L Risk / Return Rank: 97
SMGB.L Sharpe Ratio Rank: 98
SMGB.L Sortino Ratio Rank: 96
SMGB.L Omega Ratio Rank: 95
SMGB.L Calmar Ratio Rank: 98
SMGB.L Martin Ratio Rank: 97

DFNS.L

DFNS.L Risk / Return Rank: 20
DFNS.L Sharpe Ratio Rank: 20
DFNS.L Sortino Ratio Rank: 21
DFNS.L Omega Ratio Rank: 20
DFNS.L Calmar Ratio Rank: 20
DFNS.L Martin Ratio Rank: 20

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.

SMGB.L vs. DFNS.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Semiconductor UCITS ETF (SMGB.L) and VanEck Defense UCITS ETF (DFNS.L). 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.

	SMGB.L	DFNS.L	Difference
Sharpe ratio: Return per unit of total volatility	5.58	0.70	+4.88
Sortino ratio: Return per unit of downside risk	5.70	1.14	+4.56
Omega ratio: Gain probability vs. loss probability	1.74	1.13	+0.60
Calmar ratio: Return relative to maximum drawdown	14.46	0.92	+13.54
Martin ratio: Return relative to average drawdown	50.72	2.28	+48.44
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SMGB.L vs. DFNS.L - Sharpe Ratio Comparison

The current SMGB.L Sharpe Ratio is 5.58, which is higher than the DFNS.L Sharpe Ratio of 0.70. The chart below compares the historical Sharpe Ratios of SMGB.L and DFNS.L, 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

	SMGB.L	DFNS.L	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	5.58	0.70	+4.88
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.26	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.25	1.92	-0.67

Drawdowns

SMGB.L vs. DFNS.L - Drawdown Comparison

The maximum SMGB.L drawdown since its inception was -36.24%, which is greater than DFNS.L's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for SMGB.L and DFNS.L.

Drawdown Indicators

	SMGB.L	DFNS.L	Difference
Max Drawdown Largest peak-to-trough decline	-36.24%	-18.58%	-17.66%
Max Drawdown (1Y) Largest decline over 1 year	-11.94%	-18.58%	+6.64%
Max Drawdown (3Y) Largest decline over 3 years	-36.24%	-18.58%	-17.66%
Max Drawdown (5Y) Largest decline over 5 years	-36.24%	—	—
Current Drawdown Current decline from peak	-2.49%	-15.40%	+12.91%
Average Drawdown Average peak-to-trough decline	-9.75%	-3.20%	-6.55%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.41%	7.53%	-4.12%

Volatility

SMGB.L vs. DFNS.L - Volatility Comparison

VanEck Semiconductor UCITS ETF (SMGB.L) has a higher volatility of 12.41% compared to VanEck Defense UCITS ETF (DFNS.L) at 8.01%. This indicates that SMGB.L's price experiences larger fluctuations and is considered to be riskier than DFNS.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMGB.L	DFNS.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.41%	8.01%	+4.40%
Volatility (6M) Calculated over the trailing 6-month period	23.93%	18.97%	+4.96%
Volatility (1Y) Calculated over the trailing 1-year period	30.96%	24.46%	+6.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.45%	20.96%	+9.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	30.19%	20.96%	+9.23%

SMGB.L vs. DFNS.L - Expense Ratio Comparison

SMGB.L has a 0.35% expense ratio, which is lower than DFNS.L's 0.55% expense ratio.

Dividends

SMGB.L vs. DFNS.L - Dividend Comparison

Neither SMGB.L nor DFNS.L has paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022
DFNS.L VanEck Defense UCITS ETF	0.00%	0.00%	0.00%	0.00%	0.00%
SMGB.L VanEck Semiconductor UCITS ETF	0.00%	0.00%	0.00%	0.00%	0.44%

Frequently Asked Questions

Can I hold both SMGB.L and DFNS.L in my portfolio?

SMGB.L and DFNS.L have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, SMGB.L or DFNS.L?

On fees, SMGB.L is cheaper at 0.35% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, SMGB.L or DFNS.L?

SMGB.L is cheaper with a 0.35% expense ratio, compared with 0.55% for DFNS.L.

What is the main difference between SMGB.L and DFNS.L?

SMGB.L is categorized as Semiconductors, while DFNS.L is Aerospace & Defense. SMGB.L tracks MSCI World/Information Tech NR USD, while DFNS.L tracks MarketVector™ Global Defense Industry Index. Their fees differ too: 0.35% for SMGB.L and 0.55% for DFNS.L.