SMH vs. DXJ

Last updated Jun 9, 2026

SMH (VanEck Semiconductor ETF) and DXJ (WisdomTree Japan Hedged Equity Fund) are both exchange-traded funds - SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index, while DXJ is a Japan Equities fund tracking the WisdomTree Japan Hedged Equity Index. Both are passively managed. Over the past 10 years, SMH returned 36.92%/yr vs 18.23%/yr for DXJ. A 0.52 correlation means they provide meaningful diversification when combined. SMH charges 0.35%/yr vs 0.48%/yr for DXJ.

Performance

SMH vs. DXJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Semiconductor ETF (SMH) and WisdomTree Japan Hedged Equity Fund (DXJ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMH achieves a 66.10% return, which is significantly higher than DXJ's 17.86% return. Over the past 10 years, SMH has outperformed DXJ with an annualized return of 36.92%, while DXJ has yielded a comparatively lower 18.23% annualized return.

SMH

• 1D: 5.00%
• 1M: 5.58%
• YTD: 66.10%
• 6M: 62.81%
• 1Y: 137.42%
• 3Y*: 60.43%
• 5Y*: 37.89%
• 10Y*: 36.92%

DXJ

• 1D: 0.39%
• 1M: 2.00%
• YTD: 17.86%
• 6M: 21.01%
• 1Y: 51.36%
• 3Y*: 31.77%
• 5Y*: 25.93%
• 10Y*: 18.23%

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

SMH vs. DXJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SMH VanEck Semiconductor ETF	66.10%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%
DXJ WisdomTree Japan Hedged Equity Fund	17.86%	32.78%	29.83%	42.04%	5.96%	17.99%	3.94%	18.94%	-19.78%	22.81%

Correlation

The correlation between SMH and DXJ is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.43
Correlation (3Y) Calculated over the trailing 3-year period	0.43
Correlation (5Y) Calculated over the trailing 5-year period	0.49
Correlation (10Y) Calculated over the trailing 10-year period	0.52
Correlation (All Time) Calculated using the full available price history since Jun 19, 2006	0.52

The correlation between SMH and DXJ has been stable across timeframes, ranging from 0.43 to 0.52 - a consistent structural relationship.

SMH vs. DXJ - Sectors Allocation Comparison

Sectors	SMH	DXJ
Technology	100.0%	12.9%
Basic Materials	-	8.5%
Communication Services	-	2.7%
Consumer Cyclical	-	15.6%
Consumer Defensive	-	4.7%
Energy	-	1.7%
Financial Services	-	18.3%
Healthcare	-	6.8%
Industrials	-	27.4%
Real Estate	-	-
Utilities	-	0.1%

Return for Risk

SMH vs. DXJ — 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: 97
SMH Sortino Ratio Rank: 93
SMH Omega Ratio Rank: 94
SMH Calmar Ratio Rank: 97
SMH Martin Ratio Rank: 96

DXJ

DXJ Risk / Return Rank: 90
DXJ Sharpe Ratio Rank: 92
DXJ Sortino Ratio Rank: 91
DXJ Omega Ratio Rank: 90
DXJ Calmar Ratio Rank: 88
DXJ Martin Ratio Rank: 89

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. DXJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Semiconductor ETF (SMH) and WisdomTree Japan Hedged Equity Fund (DXJ). 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	DXJ	Difference
Sharpe ratio: Return per unit of total volatility	4.27	2.94	+1.33
Sortino ratio: Return per unit of downside risk	4.33	3.96	+0.37
Omega ratio: Gain probability vs. loss probability	1.62	1.53	+0.09
Calmar ratio: Return relative to maximum drawdown	9.26	4.70	+4.56
Martin ratio: Return relative to average drawdown	34.80	18.34	+16.46
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. DXJ - Sharpe Ratio Comparison

The current SMH Sharpe Ratio is 4.27, which is higher than the DXJ Sharpe Ratio of 2.94. The chart below compares the historical Sharpe Ratios of SMH and DXJ, 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	DXJ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.27	2.94	+1.33
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.08	1.37	-0.29
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.13	0.91	+0.23
Sharpe Ratio (All Time) Calculated using the full available price history	0.33	0.42	-0.09

Drawdowns

SMH vs. DXJ - Drawdown Comparison

The maximum SMH drawdown since its inception was -84.96%, which is greater than DXJ's maximum drawdown of -49.63%. Use the drawdown chart below to compare losses from any high point for SMH and DXJ.

Drawdown Indicators

	SMH	DXJ	Difference
Max Drawdown Largest peak-to-trough decline	-84.96%	-49.63%	-35.33%
Max Drawdown (1Y) Largest decline over 1 year	-14.93%	-10.98%	-3.95%
Max Drawdown (3Y) Largest decline over 3 years	-35.74%	-22.19%	-13.55%
Max Drawdown (5Y) Largest decline over 5 years	-45.30%	-22.19%	-23.11%
Max Drawdown (10Y) Largest decline over 10 years	-45.30%	-39.14%	-6.16%
Current Drawdown Current decline from peak	-6.23%	-2.06%	-4.17%
Average Drawdown Average peak-to-trough decline	-41.07%	-14.33%	-26.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.96%	2.81%	+1.15%

Volatility

SMH vs. DXJ - Volatility Comparison

VanEck Semiconductor ETF (SMH) has a higher volatility of 15.45% compared to WisdomTree Japan Hedged Equity Fund (DXJ) at 4.19%. This indicates that SMH's price experiences larger fluctuations and is considered to be riskier than DXJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMH	DXJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	15.45%	4.19%	+11.26%
Volatility (6M) Calculated over the trailing 6-month period	26.71%	13.33%	+13.38%
Volatility (1Y) Calculated over the trailing 1-year period	32.42%	17.58%	+14.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.32%	19.00%	+16.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.75%	20.19%	+12.56%

SMH vs. DXJ - Expense Ratio Comparison

SMH has a 0.35% expense ratio, which is lower than DXJ's 0.48% expense ratio.

Dividends

SMH vs. DXJ - Dividend Comparison

SMH's dividend yield for the trailing twelve months is around 0.18%, less than DXJ's 1.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DXJ WisdomTree Japan Hedged Equity Fund	1.10%	1.29%	3.48%	3.44%	3.02%	2.64%	2.53%	2.47%	2.92%	2.30%	1.98%	5.95%
SMH VanEck Semiconductor ETF	0.18%	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 DXJ in my portfolio?

SMH and DXJ have a correlation of 0.43, 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 DXJ?

SMH has higher volatility (15.45%) compared to DXJ (4.19%). In terms of maximum drawdown, SMH dropped -84.96% vs DXJ's -49.63%.

Which ETF is better, SMH or DXJ?

On 10-year performance, SMH leads with 36.92% vs 18.23% for DXJ. On fees, SMH is cheaper at 0.35% per year. On volatility, DXJ has been the lower-risk option at 4.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMH or DXJ?

Over the 10-year period, SMH has performed better with a 36.92% return vs 18.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMH or DXJ?

SMH is cheaper with a 0.35% expense ratio, compared with 0.48% for DXJ.

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

DXJ has the higher dividend yield at 1.10%, compared with 0.18% for SMH.

What is the main difference between SMH and DXJ?

SMH is categorized as Semiconductors, while DXJ is Japan Equities. SMH tracks MVIS US Listed Semiconductor 25 Index, while DXJ tracks WisdomTree Japan Hedged Equity Index. They also come from different issuers: VanEck and WisdomTree. Their fees differ too: 0.35% for SMH and 0.48% for DXJ.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (4.27 vs 2.94), 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.