SMH vs. HYG
SMH (VanEck Semiconductor ETF) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both exchange-traded funds - SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index, while HYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield Index. Both are passively managed. Over the past 10 years, SMH returned 38.18%/yr vs 5.03%/yr for HYG. A 0.52 correlation means they provide meaningful diversification when combined. SMH charges 0.35%/yr vs 0.49%/yr for HYG.
Performance
SMH vs. HYG - Performance Comparison
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Returns By Period
In the year-to-date period, SMH achieves a 79.69% return, which is significantly higher than HYG's 1.78% return. Over the past 10 years, SMH has outperformed HYG with an annualized return of 38.18%, while HYG has yielded a comparatively lower 5.03% annualized 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%
HYG
- 1D
- 0.13%
- 1M
- 1.25%
- YTD
- 1.78%
- 6M
- 2.29%
- 1Y
- 6.95%
- 3Y*
- 8.47%
- 5Y*
- 3.83%
- 10Y*
- 5.03%
SMH vs. HYG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SMH VanEck Semiconductor ETF | 79.69% | 49.17% | 39.10% | 73.38% | -33.53% | 42.13% | 55.53% | 64.45% | -9.05% | 38.48% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.78% | 8.59% | 7.97% | 11.54% | -10.98% | 3.76% | 4.47% | 14.09% | -2.02% | 6.07% |
Correlation
The correlation between SMH and HYG is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.49 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.47 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.57 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.57 |
Correlation (All Time) Calculated using the full available price history since Apr 11, 2007 | 0.52 |
The correlation between SMH and HYG has been stable across timeframes, ranging from 0.47 to 0.57 - a consistent structural relationship.
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Return for Risk
SMH vs. HYG — Risk / Return Rank
SMH
HYG
SMH vs. HYG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for VanEck Semiconductor ETF (SMH) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG). 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 | HYG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.80 | ||
| Sortino ratioReturn per unit of downside risk | +1.87 | ||
| Omega ratioGain probability vs. loss probability | 1.65 | 1.35 | +0.31 |
| Calmar ratioReturn relative to maximum drawdown | 10.28 | 2.98 | +7.30 |
| Martin ratioReturn relative to average drawdown | 37.77 | 13.11 | +24.66 |
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Drawdowns
SMH vs. HYG - Drawdown Comparison
The maximum SMH drawdown since its inception was -84.96%, which is greater than HYG's maximum drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for SMH and HYG.
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Drawdown Indicators
| SMH | HYG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -84.96% | -34.25% | -50.71% |
Max Drawdown (1Y)Largest decline over 1 year | -14.93% | -2.34% | -12.59% |
Max Drawdown (3Y)Largest decline over 3 years | -35.74% | -4.56% | -31.18% |
Max Drawdown (5Y)Largest decline over 5 years | -45.30% | -15.79% | -29.51% |
Max Drawdown (10Y)Largest decline over 10 years | -45.30% | -22.03% | -23.27% |
Current DrawdownCurrent decline from peak | 0.00% | 0.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -41.04% | -3.24% | -37.80% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.06% | 0.53% | +3.53% |
Volatility
SMH vs. HYG - Volatility Comparison
VanEck Semiconductor ETF (SMH) has a higher volatility of 16.71% compared to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) at 1.31%. This indicates that SMH's price experiences larger fluctuations and is considered to be riskier than HYG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SMH | HYG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 16.71% | 1.31% | +15.40% |
Volatility (6M)Calculated over the trailing 6-month period | 27.97% | 3.08% | +24.89% |
Volatility (1Y)Calculated over the trailing 1-year period | 33.39% | 3.87% | +29.52% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 35.53% | 7.53% | +28.00% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 32.86% | 8.29% | +24.57% |
SMH vs. HYG - Expense Ratio Comparison
SMH has a 0.35% expense ratio, which is lower than HYG's 0.49% expense ratio.
Dividends
SMH vs. HYG - Dividend Comparison
SMH's dividend yield for the trailing twelve months is around 0.17%, less than HYG's 5.89% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.89% | 5.71% | 6.01% | 5.74% | 5.30% | 4.02% | 4.88% | 4.99% | 5.54% | 5.12% | 5.27% | 5.90% |
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
SMH and HYG have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SMH has higher volatility (16.71%) compared to HYG (1.31%). In terms of maximum drawdown, SMH dropped -84.96% vs HYG's -34.25%.
On 10-year performance, SMH leads with 38.18% vs 5.03% for HYG. On fees, SMH is cheaper at 0.35% per year. On volatility, HYG has been the lower-risk option at 1.31%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SMH has performed better with a 38.18% return vs 5.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SMH is cheaper with a 0.35% expense ratio, compared with 0.49% for HYG.
HYG has the higher dividend yield at 5.89%, compared with 0.17% for SMH.
SMH is categorized as Semiconductors, while HYG is High Yield Bonds. SMH tracks MVIS US Listed Semiconductor 25 Index, while HYG tracks Markit iBoxx USD Liquid High Yield Index. They also come from different issuers: VanEck and iShares. Their fees differ too: 0.35% for SMH and 0.49% for HYG.
SMH currently has the higher Sharpe Ratio (4.61 vs 1.81), 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.
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