SMH vs. FAS

Last updated Jun 14, 2026

SMH (VanEck Semiconductor ETF) and FAS (Direxion Daily Financial Bull 3X Shares) are both exchange-traded funds - SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index, while FAS is a Leveraged Equities fund tracking the Russell 1000 Financial Services Index (300%). Both are passively managed. Over the past 10 years, SMH returned 37.49%/yr vs 21.20%/yr for FAS. A 0.57 correlation means they provide meaningful diversification when combined. SMH charges 0.35%/yr vs 1.00%/yr for FAS.

Performance

SMH vs. FAS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Semiconductor ETF (SMH) and Direxion Daily Financial Bull 3X Shares (FAS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMH achieves a 72.15% return, which is significantly higher than FAS's -13.50% return. Over the past 10 years, SMH has outperformed FAS with an annualized return of 37.49%, while FAS has yielded a comparatively lower 21.20% annualized return.

SMH

• 1D: 1.72%
• 1M: 11.44%
• YTD: 72.15%
• 6M: 75.62%
• 1Y: 141.99%
• 3Y*: 60.05%
• 5Y*: 38.42%
• 10Y*: 37.49%

FAS

• 1D: 4.15%
• 1M: 12.28%
• YTD: -13.50%
• 6M: -13.89%
• 1Y: 7.93%
• 3Y*: 38.21%
• 5Y*: 7.30%
• 10Y*: 21.20%

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

SMH vs. FAS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SMH VanEck Semiconductor ETF	72.15%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%
FAS Direxion Daily Financial Bull 3X Shares	-13.50%	21.48%	84.47%	14.92%	-43.19%	116.59%	-34.97%	113.04%	-33.84%	67.37%

Correlation

The correlation between SMH and FAS 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	0.31
Correlation (5Y) Calculated over the trailing 5-year period	0.46
Correlation (10Y) Calculated over the trailing 10-year period	0.50
Correlation (All Time) Calculated using the full available price history since Nov 19, 2008	0.57

Over the past year, the correlation between SMH and FAS has dropped to 0.24 - well below their long-term average of 0.57, suggesting their price drivers have been diverging.

SMH vs. FAS - Sectors Allocation Comparison

Sectors	SMH	FAS
Technology	100.0%	1.8%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	98.0%
Healthcare	-	-
Industrials	-	0.2%
Real Estate	-	-
Utilities	-	-

Return for Risk

SMH vs. FAS — 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: 94
SMH Omega Ratio Rank: 94
SMH Calmar Ratio Rank: 97
SMH Martin Ratio Rank: 96

FAS

FAS Risk / Return Rank: 11
FAS Sharpe Ratio Rank: 10
FAS Sortino Ratio Rank: 11
FAS Omega Ratio Rank: 12
FAS Calmar Ratio Rank: 10
FAS Martin Ratio Rank: 10

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. FAS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Semiconductor ETF (SMH) and Direxion Daily Financial Bull 3X Shares (FAS). 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	FAS	Difference
Sharpe ratio: Return per unit of total volatility	4.13	0.03	+4.10
Sortino ratio: Return per unit of downside risk	4.26	0.34	+3.92
Omega ratio: Gain probability vs. loss probability	1.60	1.04	+0.56
Calmar ratio: Return relative to maximum drawdown	9.18	0.03	+9.15
Martin ratio: Return relative to average drawdown	33.74	0.08	+33.66

SMH vs. FAS - Sharpe Ratio Comparison

The current SMH Sharpe Ratio is 4.13, which is higher than the FAS Sharpe Ratio of 0.03. The chart below compares the historical Sharpe Ratios of SMH and FAS, 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. FAS - Drawdown Comparison

The maximum SMH drawdown since its inception was -84.96%, smaller than the maximum FAS drawdown of -91.61%. Use the drawdown chart below to compare losses from any high point for SMH and FAS.

Drawdown Indicators

	SMH	FAS	Difference
Max Drawdown Largest peak-to-trough decline	-84.96%	-91.61%	+6.65%
Max Drawdown (1Y) Largest decline over 1 year	-14.93%	-40.88%	+25.95%
Max Drawdown (3Y) Largest decline over 3 years	-35.74%	-43.10%	+7.36%
Max Drawdown (5Y) Largest decline over 5 years	-45.30%	-66.88%	+21.58%
Max Drawdown (10Y) Largest decline over 10 years	-45.30%	-85.99%	+40.69%
Current Drawdown Current decline from peak	-2.81%	-20.63%	+17.82%
Average Drawdown Average peak-to-trough decline	-41.04%	-31.12%	-9.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.06%	17.97%	-13.91%

Volatility

SMH vs. FAS - Volatility Comparison

VanEck Semiconductor ETF (SMH) has a higher volatility of 16.25% compared to Direxion Daily Financial Bull 3X Shares (FAS) at 12.45%. This indicates that SMH's price experiences larger fluctuations and is considered to be riskier than FAS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMH	FAS	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.25%	12.45%	+3.80%
Volatility (6M) Calculated over the trailing 6-month period	27.73%	33.46%	-5.73%
Volatility (1Y) Calculated over the trailing 1-year period	33.20%	43.61%	-10.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.47%	55.59%	-20.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.82%	61.33%	-28.51%

SMH vs. FAS - Expense Ratio Comparison

SMH has a 0.35% expense ratio, which is lower than FAS's 1.00% expense ratio.

Dividends

SMH vs. FAS - Dividend Comparison

SMH's dividend yield for the trailing twelve months is around 0.18%, less than FAS's 9.64% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FAS Direxion Daily Financial Bull 3X Shares	9.64%	8.21%	0.76%	1.77%	0.91%	0.60%	0.47%	0.62%	1.43%	0.11%	0.00%	0.00%
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 FAS in my portfolio?

SMH and FAS 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 is riskier, SMH or FAS?

SMH has higher volatility (16.25%) compared to FAS (12.45%). In terms of maximum drawdown, SMH dropped -84.96% vs FAS's -91.61%.

Which ETF is better, SMH or FAS?

On 10-year performance, SMH leads with 37.49% vs 21.20% for FAS. On fees, SMH is cheaper at 0.35% per year. On volatility, FAS has been the lower-risk option at 12.45%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMH or FAS?

Over the 10-year period, SMH has performed better with a 37.49% return vs 21.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMH or FAS?

SMH is cheaper with a 0.35% expense ratio, compared with 1.00% for FAS.

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

FAS has the higher dividend yield at 9.64%, compared with 0.18% for SMH.

What is the main difference between SMH and FAS?

SMH is categorized as Semiconductors, while FAS is Leveraged Equities. SMH tracks MVIS US Listed Semiconductor 25 Index, while FAS tracks Russell 1000 Financial Services Index (300%). They also come from different issuers: VanEck and Direxion. Their fees differ too: 0.35% for SMH and 1.00% for FAS.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (4.13 vs 0.03), 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.