SMH vs. CAOS

Last updated Jul 16, 2026

SMH (VanEck Semiconductor ETF) and CAOS (Alpha Architect Tail Risk ETF) are both exchange-traded funds - SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index, while CAOS is a Options Trading fund actively managed by Alpha Architect. SMH is passively managed, while CAOS is actively managed. Over the past 3 years, SMH returned 56.28%/yr vs 3.63%/yr for CAOS. At a 0.00 correlation, their price movements are largely independent. SMH charges 0.35%/yr vs 0.63%/yr for CAOS.

Performance

SMH vs. CAOS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Semiconductor ETF (SMH) and Alpha Architect Tail Risk ETF (CAOS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMH achieves a 64.04% return, which is significantly higher than CAOS's 0.84% return.

SMH

• 1D: -1.59%
• 1M: -8.70%
• 6M: 52.12%
• YTD: 64.04%
• 1Y: 103.79%
• 3Y*: 56.28%
• 5Y*: 37.60%
• 10Y*: 36.05%

CAOS

• 1D: 0.06%
• 1M: 0.12%
• 6M: 0.30%
• YTD: 0.84%
• 1Y: 2.02%
• 3Y*: 3.63%
• 5Y*: —
• 10Y*: —

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

SMH vs. CAOS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
SMH VanEck Semiconductor ETF	64.04%	49.17%	39.10%	43.63%
CAOS Alpha Architect Tail Risk ETF	0.84%	2.55%	5.33%	7.43%

Correlation

The correlation between SMH and CAOS is -0.33, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.33
Correlation (3Y) Calculated over the trailing 3-year period	-0.09
Correlation (All Time) Calculated using the full available price history since Mar 6, 2023	0.00

The correlation between SMH and CAOS shifts across timeframes, from -0.33 (1 year) to 0.00 (all time), reflecting how their relationship changes across market environments.

Return for Risk

SMH vs. CAOS — Risk / Return Rank

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

SMH

SMH Risk / Return Rank: 92
SMH Sharpe Ratio Rank: 94
SMH Sortino Ratio Rank: 86
SMH Omega Ratio Rank: 88
SMH Calmar Ratio Rank: 96
SMH Martin Ratio Rank: 95

CAOS

CAOS Risk / Return Rank: 53
CAOS Sharpe Ratio Rank: 46
CAOS Sortino Ratio Rank: 52
CAOS Omega Ratio Rank: 53
CAOS Calmar Ratio Rank: 67
CAOS Martin Ratio Rank: 45

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. CAOS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Semiconductor ETF (SMH) and Alpha Architect Tail Risk ETF (CAOS). 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.

	SMH	CAOS	Difference
Sharpe ratio: Return per unit of total volatility	2.84	1.31	+1.53
Sortino ratio: Return per unit of downside risk	3.13	2.09	+1.03
Omega ratio: Gain probability vs. loss probability	1.43	1.27	+0.16
Calmar ratio: Return relative to maximum drawdown	6.99	2.68	+4.31
Martin ratio: Return relative to average drawdown	22.21	6.06	+16.15

SMH vs. CAOS - Sharpe Ratio Comparison

The current SMH Sharpe Ratio is 2.84, which is higher than the CAOS Sharpe Ratio of 1.31. The chart below compares the historical Sharpe Ratios of SMH and CAOS, 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

SMH vs. CAOS - Drawdown Comparison

The maximum SMH drawdown since its inception was -84.96%, which is greater than CAOS's maximum drawdown of -3.89%. Use the drawdown chart below to compare losses from any high point for SMH and CAOS.

Drawdown Indicators

	SMH	CAOS	Difference
Max Drawdown Largest peak-to-trough decline	-84.96%	-3.89%	-81.07%
Max Drawdown (1Y) Largest decline over 1 year	-14.93%	-0.76%	-14.17%
Max Drawdown (3Y) Largest decline over 3 years	-35.74%	-3.60%	-32.14%
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	-11.68%	-1.04%	-10.64%
Average Drawdown Average peak-to-trough decline	-40.93%	-0.92%	-40.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.69%	0.33%	+4.36%

Volatility

SMH vs. CAOS - Volatility Comparison

VanEck Semiconductor ETF (SMH) has a higher volatility of 17.35% compared to Alpha Architect Tail Risk ETF (CAOS) at 0.48%. This indicates that SMH's price experiences larger fluctuations and is considered to be riskier than CAOS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMH	CAOS	Difference
Volatility (1M) Calculated over the trailing 1-month period	17.35%	0.48%	+16.87%
Volatility (6M) Calculated over the trailing 6-month period	31.34%	1.09%	+30.25%
Volatility (1Y) Calculated over the trailing 1-year period	36.79%	1.56%	+35.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	36.19%	4.20%	+31.99%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	33.14%	4.20%	+28.94%

SMH vs. CAOS - Expense Ratio Comparison

SMH has a 0.35% expense ratio, which is lower than CAOS's 0.63% expense ratio.

Dividends

SMH vs. CAOS - Dividend Comparison

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

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CAOS Alpha Architect Tail Risk 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 CAOS in my portfolio?

SMH and CAOS have a correlation of -0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SMH or CAOS?

SMH has higher volatility (17.35%) compared to CAOS (0.48%). In terms of maximum drawdown, SMH dropped -84.96% vs CAOS's -3.89%.

Which ETF is better, SMH or CAOS?

On 3-year performance, SMH leads with 56.28% vs 3.63% for CAOS. On fees, SMH is cheaper at 0.35% per year. On volatility, CAOS has been the lower-risk option at 0.48%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMH or CAOS?

Over the 3-year period, SMH has performed better with a 56.28% return vs 3.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMH or CAOS?

SMH is cheaper with a 0.35% expense ratio, compared with 0.63% for CAOS.

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

SMH has the higher dividend yield at 0.19%, compared with 0.00% for CAOS.

What is the main difference between SMH and CAOS?

SMH is categorized as Semiconductors, while CAOS is Options Trading. They also come from different issuers: VanEck and Alpha Architect. Their fees differ too: 0.35% for SMH and 0.63% for CAOS.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (2.84 vs 1.31), 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.