SMH vs. AIAI.L

Last updated Jun 6, 2026

SMH (VanEck Semiconductor ETF) and AIAI.L (L&G Artificial Intelligence UCITS ETF) are both exchange-traded funds - SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index, while AIAI.L is a Technology Equities fund tracking the MSCI World/Information Tech NR USD. Both are passively managed. Over the past 5 years, SMH returned 36.10%/yr vs 18.10%/yr for AIAI.L. At a 0.50 correlation, their price movements are largely independent. SMH charges 0.35%/yr vs 0.49%/yr for AIAI.L.

Performance

SMH vs. AIAI.L - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Semiconductor ETF (SMH) and L&G Artificial Intelligence UCITS ETF (AIAI.L). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMH achieves a 58.19% return, which is significantly higher than AIAI.L's 42.35% return.

SMH

• 1D: -9.22%
• 1M: 3.63%
• YTD: 58.19%
• 6M: 56.81%
• 1Y: 127.40%
• 3Y*: 58.39%
• 5Y*: 36.10%
• 10Y*: 36.02%

AIAI.L

• 1D: -1.83%
• 1M: 18.80%
• YTD: 42.35%
• 6M: 39.03%
• 1Y: 75.99%
• 3Y*: 38.01%
• 5Y*: 18.10%
• 10Y*: —

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

SMH vs. AIAI.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
SMH VanEck Semiconductor ETF	58.19%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	28.20%
AIAI.L L&G Artificial Intelligence UCITS ETF	42.35%	30.30%	18.45%	59.58%	-40.29%	9.81%	68.60%	3.43%

Correlation

The correlation between SMH and AIAI.L is 0.61, 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	0.61
Correlation (3Y) Calculated over the trailing 3-year period	0.52
Correlation (5Y) Calculated over the trailing 5-year period	0.53
Correlation (All Time) Calculated using the full available price history since Jul 3, 2019	0.50

The correlation between SMH and AIAI.L shifts across timeframes, from 0.50 (all time) to 0.61 (1 year), reflecting how their relationship changes across market environments.

SMH vs. AIAI.L - Sectors Allocation Comparison

Sectors	SMH	AIAI.L
Technology	100.0%	71.5%
Basic Materials	-	-
Communication Services	-	10.3%
Consumer Cyclical	-	9.2%
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	1.3%
Healthcare	-	5.7%
Industrials	-	1.1%
Real Estate	-	0.9%
Utilities	-	-

Return for Risk

SMH vs. AIAI.L — Risk / Return Rank

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

SMH

SMH Risk / Return Rank: 94
SMH Sharpe Ratio Rank: 96
SMH Sortino Ratio Rank: 90
SMH Omega Ratio Rank: 92
SMH Calmar Ratio Rank: 96
SMH Martin Ratio Rank: 95

AIAI.L

AIAI.L Risk / Return Rank: 83
AIAI.L Sharpe Ratio Rank: 89
AIAI.L Sortino Ratio Rank: 83
AIAI.L Omega Ratio Rank: 78
AIAI.L Calmar Ratio Rank: 86
AIAI.L Martin Ratio Rank: 77

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.

SMH vs. AIAI.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Semiconductor ETF (SMH) and L&G Artificial Intelligence UCITS ETF (AIAI.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.

	SMH	AIAI.L	Difference
Sharpe ratio: Return per unit of total volatility	4.00	3.00	+1.00
Sortino ratio: Return per unit of downside risk	4.12	3.68	+0.44
Omega ratio: Gain probability vs. loss probability	1.59	1.46	+0.13
Calmar ratio: Return relative to maximum drawdown	8.58	4.73	+3.85
Martin ratio: Return relative to average drawdown	32.42	14.60	+17.82
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SMH vs. AIAI.L - Sharpe Ratio Comparison

The current SMH Sharpe Ratio is 4.00, which is higher than the AIAI.L Sharpe Ratio of 3.00. The chart below compares the historical Sharpe Ratios of SMH and AIAI.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

	SMH	AIAI.L	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.00	3.00	+1.00
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.03	0.63	+0.40
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.11	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.32	0.77	-0.45

Drawdowns

SMH vs. AIAI.L - Drawdown Comparison

The maximum SMH drawdown since its inception was -84.96%, which is greater than AIAI.L's maximum drawdown of -49.61%. Use the drawdown chart below to compare losses from any high point for SMH and AIAI.L.

Drawdown Indicators

	SMH	AIAI.L	Difference
Max Drawdown Largest peak-to-trough decline	-84.96%	-49.61%	-35.35%
Max Drawdown (1Y) Largest decline over 1 year	-14.93%	-16.80%	+1.87%
Max Drawdown (3Y) Largest decline over 3 years	-35.74%	-29.96%	-5.78%
Max Drawdown (5Y) Largest decline over 5 years	-45.30%	-49.61%	+4.31%
Max Drawdown (10Y) Largest decline over 10 years	-45.30%	—	—
Current Drawdown Current decline from peak	-10.69%	-1.83%	-8.86%
Average Drawdown Average peak-to-trough decline	-41.08%	-14.16%	-26.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.94%	5.45%	-1.51%

Volatility

SMH vs. AIAI.L - Volatility Comparison

VanEck Semiconductor ETF (SMH) has a higher volatility of 14.88% compared to L&G Artificial Intelligence UCITS ETF (AIAI.L) at 10.67%. This indicates that SMH's price experiences larger fluctuations and is considered to be riskier than AIAI.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMH	AIAI.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.88%	10.67%	+4.21%
Volatility (6M) Calculated over the trailing 6-month period	26.35%	20.49%	+5.86%
Volatility (1Y) Calculated over the trailing 1-year period	32.03%	26.55%	+5.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.24%	28.59%	+6.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.70%	28.81%	+3.89%

SMH vs. AIAI.L - Expense Ratio Comparison

SMH has a 0.35% expense ratio, which is lower than AIAI.L's 0.49% expense ratio.

Dividends

SMH vs. AIAI.L - Dividend Comparison

SMH's dividend yield for the trailing twelve months is around 0.19%, while AIAI.L has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AIAI.L L&G Artificial Intelligence UCITS ETF	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	0.19%	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 SMH and AIAI.L in my portfolio?

SMH and AIAI.L have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, SMH or AIAI.L?

On fees, SMH 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, SMH or AIAI.L?

SMH is cheaper with a 0.35% expense ratio, compared with 0.49% for AIAI.L.

What is the main difference between SMH and AIAI.L?

SMH is categorized as Semiconductors, while AIAI.L is Technology Equities. SMH tracks MVIS US Listed Semiconductor 25 Index, while AIAI.L tracks MSCI World/Information Tech NR USD. They also come from different issuers: VanEck and Legal & General. Their fees differ too: 0.35% for SMH and 0.49% for AIAI.L.