SMH vs. DFAI

Last updated Jun 16, 2026

SMH (VanEck Semiconductor ETF) and DFAI (Dimensional International Core Equity Market ETF) are both exchange-traded funds - SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index, while DFAI is a Foreign Large Cap Equities fund actively managed by Dimensional. SMH is passively managed, while DFAI is actively managed. Over the past 5 years, SMH returned 39.72%/yr vs 9.68%/yr for DFAI. A 0.61 correlation means they provide meaningful diversification when combined. SMH charges 0.35%/yr vs 0.18%/yr for DFAI.

Performance

SMH vs. DFAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Semiconductor ETF (SMH) and Dimensional International Core Equity Market ETF (DFAI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMH achieves a 79.69% return, which is significantly higher than DFAI's 10.55% return.

SMH

• 1D: 4.38%
• 1M: 16.31%
• YTD: 79.69%
• 6M: 83.94%
• 1Y: 152.58%
• 3Y*: 62.32%
• 5Y*: 39.72%
• 10Y*: 38.18%

DFAI

• 1D: 0.45%
• 1M: 2.91%
• YTD: 10.55%
• 6M: 11.38%
• 1Y: 25.58%
• 3Y*: 17.58%
• 5Y*: 9.68%
• 10Y*: —

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

SMH vs. DFAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
SMH VanEck Semiconductor ETF	79.69%	49.17%	39.10%	73.38%	-33.53%	42.13%	10.30%
DFAI Dimensional International Core Equity Market ETF	10.55%	34.04%	4.68%	17.60%	-12.95%	13.86%	5.34%

Correlation

The correlation between SMH and DFAI is 0.58, 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	0.58
Correlation (3Y) Calculated over the trailing 3-year period	0.55
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (All Time) Calculated using the full available price history since Nov 18, 2020	0.61

The correlation between SMH and DFAI has been stable across timeframes, ranging from 0.55 to 0.62 - a consistent structural relationship.

SMH vs. DFAI - Sectors Allocation Comparison

Sectors	SMH	DFAI
Technology	100.0%	7.7%
Basic Materials	-	10.0%
Communication Services	-	3.5%
Consumer Cyclical	-	9.0%
Consumer Defensive	-	6.4%
Energy	-	7.2%
Financial Services	-	23.5%
Healthcare	-	8.5%
Industrials	-	18.4%
Real Estate	-	1.4%
Utilities	-	4.0%

Return for Risk

SMH vs. DFAI — Risk / Return Rank

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

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: 97

DFAI

DFAI Risk / Return Rank: 56
DFAI Sharpe Ratio Rank: 58
DFAI Sortino Ratio Rank: 58
DFAI Omega Ratio Rank: 58
DFAI Calmar Ratio Rank: 52
DFAI Martin Ratio Rank: 57

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. DFAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Semiconductor ETF (SMH) and Dimensional International Core Equity Market ETF (DFAI). 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	DFAI	Difference
Sharpe ratio: Return per unit of total volatility	4.61	1.77	+2.84
Sortino ratio: Return per unit of downside risk	4.60	2.48	+2.12
Omega ratio: Gain probability vs. loss probability	1.65	1.32	+0.34
Calmar ratio: Return relative to maximum drawdown	10.28	2.35	+7.94
Martin ratio: Return relative to average drawdown	37.77	9.14	+28.63

SMH vs. DFAI - Sharpe Ratio Comparison

The current SMH Sharpe Ratio is 4.61, which is higher than the DFAI Sharpe Ratio of 1.77. The chart below compares the historical Sharpe Ratios of SMH and DFAI, 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. DFAI - Drawdown Comparison

The maximum SMH drawdown since its inception was -84.96%, which is greater than DFAI's maximum drawdown of -27.44%. Use the drawdown chart below to compare losses from any high point for SMH and DFAI.

Drawdown Indicators

	SMH	DFAI	Difference
Max Drawdown Largest peak-to-trough decline	-84.96%	-27.44%	-57.52%
Max Drawdown (1Y) Largest decline over 1 year	-14.93%	-10.95%	-3.98%
Max Drawdown (3Y) Largest decline over 3 years	-35.74%	-13.25%	-22.49%
Max Drawdown (5Y) Largest decline over 5 years	-45.30%	-27.44%	-17.86%
Max Drawdown (10Y) Largest decline over 10 years	-45.30%	—	—
Current Drawdown Current decline from peak	0.00%	-0.35%	+0.35%
Average Drawdown Average peak-to-trough decline	-41.04%	-5.10%	-35.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.06%	2.81%	+1.25%

Volatility

SMH vs. DFAI - Volatility Comparison

VanEck Semiconductor ETF (SMH) has a higher volatility of 16.71% compared to Dimensional International Core Equity Market ETF (DFAI) at 5.12%. This indicates that SMH's price experiences larger fluctuations and is considered to be riskier than DFAI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMH	DFAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.71%	5.12%	+11.59%
Volatility (6M) Calculated over the trailing 6-month period	27.97%	12.28%	+15.69%
Volatility (1Y) Calculated over the trailing 1-year period	33.39%	14.58%	+18.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.53%	16.01%	+19.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.86%	15.74%	+17.12%

SMH vs. DFAI - Expense Ratio Comparison

SMH has a 0.35% expense ratio, which is higher than DFAI's 0.18% expense ratio.

Dividends

SMH vs. DFAI - Dividend Comparison

SMH's dividend yield for the trailing twelve months is around 0.17%, less than DFAI's 2.23% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFAI Dimensional International Core Equity Market ETF	2.23%	2.45%	2.72%	2.64%	2.72%	2.06%	0.09%	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 SMH and DFAI in my portfolio?

SMH and DFAI have a correlation of 0.58, 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 DFAI?

SMH has higher volatility (16.71%) compared to DFAI (5.12%). In terms of maximum drawdown, SMH dropped -84.96% vs DFAI's -27.44%.

Which ETF is better, SMH or DFAI?

On 5-year performance, SMH leads with 39.72% vs 9.68% for DFAI. On fees, DFAI is cheaper at 0.18% per year. On volatility, DFAI has been the lower-risk option at 5.12%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMH or DFAI?

Over the 5-year period, SMH has performed better with a 39.72% return vs 9.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMH or DFAI?

DFAI is cheaper with a 0.18% expense ratio, compared with 0.35% for SMH.

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

DFAI has the higher dividend yield at 2.23%, compared with 0.17% for SMH.

What is the main difference between SMH and DFAI?

SMH is categorized as Semiconductors, while DFAI is Foreign Large Cap Equities. They also come from different issuers: VanEck and Dimensional. Their fees differ too: 0.35% for SMH and 0.18% for DFAI.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (4.61 vs 1.77), 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.