SMH vs. LRCX

Last updated Jun 9, 2026

SMH (VanEck Semiconductor ETF) is Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index, while LRCX (Lam Research Corporation) is a stock. Over the past 10 years, SMH returned 36.92%/yr vs 46.35%/yr for LRCX. Their correlation of 0.82 suggests significant overlap in exposure.

Performance

SMH vs. LRCX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Semiconductor ETF (SMH) and Lam Research Corporation (LRCX). 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 lower than LRCX's 89.76% return. Over the past 10 years, SMH has underperformed LRCX with an annualized return of 36.92%, while LRCX has yielded a comparatively higher 46.35% 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%

LRCX

• 1D: 6.98%
• 1M: 10.34%
• YTD: 89.76%
• 6M: 99.61%
• 1Y: 278.49%
• 3Y*: 76.58%
• 5Y*: 40.10%
• 10Y*: 46.35%

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

SMH vs. LRCX - 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%
LRCX Lam Research Corporation	89.76%	139.16%	-6.84%	88.63%	-40.72%	53.66%	64.18%	119.33%	-24.40%	76.21%

Correlation

The correlation between SMH and LRCX is 0.84, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (10Y) Calculated over the trailing 10-year period	0.86
Correlation (All Time) Calculated using the full available price history since Jun 6, 2000	0.82

The correlation between SMH and LRCX has been stable across timeframes, ranging from 0.82 to 0.87 - a consistent structural relationship.

Return for Risk

SMH vs. LRCX — 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

LRCX

LRCX Risk / Return Rank: 98
LRCX Sharpe Ratio Rank: 99
LRCX Sortino Ratio Rank: 97
LRCX Omega Ratio Rank: 96
LRCX Calmar Ratio Rank: 99
LRCX Martin Ratio Rank: 99

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. LRCX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Semiconductor ETF (SMH) and Lam Research Corporation (LRCX). 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	LRCX	Difference
Sharpe ratio: Return per unit of total volatility	4.27	5.46	-1.18
Sortino ratio: Return per unit of downside risk	4.33	4.54	-0.20
Omega ratio: Gain probability vs. loss probability	1.62	1.60	+0.02
Calmar ratio: Return relative to maximum drawdown	9.26	14.02	-4.76
Martin ratio: Return relative to average drawdown	34.80	47.19	-12.38
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. LRCX - Sharpe Ratio Comparison

The current SMH Sharpe Ratio is 4.27, which is comparable to the LRCX Sharpe Ratio of 5.46. The chart below compares the historical Sharpe Ratios of SMH and LRCX, 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	LRCX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.27	5.46	-1.18
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.08	0.87	+0.21
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.13	1.04	+0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.33	0.43	-0.10

Drawdowns

SMH vs. LRCX - Drawdown Comparison

The maximum SMH drawdown since its inception was -84.96%, roughly equal to the maximum LRCX drawdown of -87.90%. Use the drawdown chart below to compare losses from any high point for SMH and LRCX.

Drawdown Indicators

	SMH	LRCX	Difference
Max Drawdown Largest peak-to-trough decline	-84.96%	-87.90%	+2.94%
Max Drawdown (1Y) Largest decline over 1 year	-14.93%	-20.01%	+5.08%
Max Drawdown (3Y) Largest decline over 3 years	-35.74%	-47.10%	+11.36%
Max Drawdown (5Y) Largest decline over 5 years	-45.30%	-56.39%	+11.09%
Max Drawdown (10Y) Largest decline over 10 years	-45.30%	-56.39%	+11.09%
Current Drawdown Current decline from peak	-6.23%	-5.60%	-0.63%
Average Drawdown Average peak-to-trough decline	-41.07%	-28.18%	-12.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.96%	5.93%	-1.97%

Volatility

SMH vs. LRCX - Volatility Comparison

The current volatility for VanEck Semiconductor ETF (SMH) is 15.45%, while Lam Research Corporation (LRCX) has a volatility of 18.51%. This indicates that SMH experiences smaller price fluctuations and is considered to be less risky than LRCX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMH	LRCX	Difference
Volatility (1M) Calculated over the trailing 1-month period	15.45%	18.51%	-3.06%
Volatility (6M) Calculated over the trailing 6-month period	26.71%	42.13%	-15.42%
Volatility (1Y) Calculated over the trailing 1-year period	32.42%	51.52%	-19.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.32%	46.25%	-10.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.75%	44.76%	-12.01%

Dividends

SMH vs. LRCX - Dividend Comparison

SMH's dividend yield for the trailing twelve months is around 0.18%, less than LRCX's 0.31% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LRCX Lam Research Corporation	0.31%	0.57%	1.19%	0.95%	1.53%	0.78%	1.04%	1.54%	2.79%	1.01%	1.28%	1.36%
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 LRCX in my portfolio?

SMH and LRCX have a correlation of 0.84, 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 LRCX?

LRCX has higher volatility (18.51%) compared to SMH (15.45%). In terms of maximum drawdown, SMH dropped -84.96% vs LRCX's -87.90%.

Which has better risk-adjusted returns?

LRCX currently has the higher Sharpe Ratio (5.46 vs 4.27), 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.