SMH vs. MGK

Last updated Aug 1, 2026

SMH (VanEck Semiconductor ETF) and MGK (Vanguard Mega Cap Growth ETF) are both exchange-traded funds - SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index, while MGK is a Large Cap Growth Equities fund tracking the CRSP US Mega Cap Growth Index. Both are passively managed. Over the past 10 years, SMH returned 34.16%/yr vs 18.26%/yr for MGK. Their 0.79 correlation means they have sometimes moved together and sometimes differently. SMH charges 0.35%/yr vs 0.05%/yr for MGK.

Performance

SMH vs. MGK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Semiconductor ETF (SMH) and Vanguard Mega Cap Growth ETF (MGK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMH achieves a 50.09% return, which is significantly higher than MGK's 4.77% return. Over the past 10 years, SMH has outperformed MGK with an annualized return of 34.16%, while MGK has yielded a comparatively lower 18.26% annualized return.

SMH

• 1D: 0.30%
• 1M: -12.88%
• 6M: 33.97%
• YTD: 50.09%
• 1Y: 87.76%
• 3Y*: 50.56%
• 5Y*: 33.46%
• 10Y*: 34.16%
• ALL TIME*: 11.06%

MGK

• 1D: 1.11%
• 1M: -1.80%
• 6M: 6.56%
• YTD: 4.77%
• 1Y: 13.84%
• 3Y*: 21.79%
• 5Y*: 13.06%
• 10Y*: 18.26%
• ALL TIME*: 13.36%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
MGK Vanguard Mega Cap Growth ETF	$119.42M	$123.75M	$142.35M
SMH VanEck Semiconductor ETF	$8.28B	$7.64B	$7.07B

SMH vs. MGK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SMH VanEck Semiconductor ETF	50.09%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%
MGK Vanguard Mega Cap Growth ETF	4.77%	20.67%	32.94%	51.67%	-33.59%	28.58%	41.01%	37.38%	-2.91%	29.49%

Correlation

The correlation between SMH and MGK is 0.74, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.74
Correlation (3Y) Balances recent behavior with more history.	0.79
Correlation (5Y) Shows whether the relationship held over a longer period.	0.82
Correlation (10Y) Provides a long-term view across more market conditions.	0.80
Correlation (All Time) Calculated using the full available price history since Dec 27, 2007	0.79

The correlation between SMH and MGK has been stable across timeframes, ranging from 0.74 to 0.82 - a consistent structural relationship.

SMH vs. MGK - Sectors Allocation Comparison

Sectors	SMH	MGK
Technology	100.0%	58.7%
Basic Materials	-	0.4%
Communication Services	-	16.4%
Consumer Cyclical	-	11.3%
Consumer Defensive	-	0.4%
Energy	-	-
Financial Services	-	4.0%
Healthcare	-	4.9%
Industrials	-	2.7%
Real Estate	-	1.2%
Utilities	-	1.0%

Return for Risk

SMH vs. MGK — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

SMH

SMH Risk / Return Rank: 87
SMH Sharpe Ratio Rank: 91
SMH Sortino Ratio Rank: 83
SMH Omega Ratio Rank: 84
SMH Calmar Ratio Rank: 88
SMH Martin Ratio Rank: 91

MGK

MGK Risk / Return Rank: 29
MGK Sharpe Ratio Rank: 31
MGK Sortino Ratio Rank: 30
MGK Omega Ratio Rank: 29
MGK Calmar Ratio Rank: 26
MGK Martin Ratio Rank: 30

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

SMH vs. MGK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Semiconductor ETF (SMH) and Vanguard Mega Cap Growth ETF (MGK). 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	MGK	Difference
Sharpe ratio: Return per unit of total volatility	2.29	0.76	+1.53
Sortino ratio: Return per unit of downside risk	2.70	1.16	+1.54
Omega ratio: Gain probability vs. loss probability	1.36	1.14	+0.22
Calmar ratio: Return relative to maximum drawdown	3.58	0.83	+2.76
Martin ratio: Return relative to average drawdown	14.64	2.57	+12.07

SMH vs. MGK - Sharpe Ratio Comparison

The current SMH Sharpe Ratio is 2.29, which is higher than the MGK Sharpe Ratio of 0.76. The chart below compares the historical Sharpe Ratios of SMH and MGK, 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. MGK - Drawdown Comparison

The maximum SMH drawdown since its inception was -84.96%, which is greater than MGK's maximum drawdown of -48.43%. Use the drawdown chart below to compare losses from any high point for SMH and MGK.

Drawdown Indicators

	SMH	MGK	Difference
Max Drawdown Largest peak-to-trough decline	-84.96%	-48.43%	-36.53%
Max Drawdown (1Y) Largest decline over 1 year	-24.62%	-16.85%	-7.77%
Max Drawdown (3Y) Largest decline over 3 years	-35.74%	-23.36%	-12.38%
Max Drawdown (5Y) Largest decline over 5 years	-45.30%	-36.01%	-9.29%
Max Drawdown (10Y) Largest decline over 10 years	-45.30%	-36.01%	-9.29%
Current Drawdown Current decline from peak	-19.19%	-6.13%	-13.06%
Average Drawdown Average peak-to-trough decline	-40.89%	-7.57%	-33.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.01%	5.40%	+0.61%

Volatility

SMH vs. MGK - Volatility Comparison

VanEck Semiconductor ETF (SMH) has a higher volatility of 14.70% compared to Vanguard Mega Cap Growth ETF (MGK) at 5.90%. This indicates that SMH's price experiences larger fluctuations and is considered to be riskier than MGK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMH	MGK	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.70%	5.90%	+8.80%
Volatility (6M) Calculated over the trailing 6-month period	33.13%	14.66%	+18.47%
Volatility (1Y) Calculated over the trailing 1-year period	38.57%	18.25%	+20.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	36.50%	22.93%	+13.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	33.32%	22.02%	+11.30%

SMH vs. MGK - Expense Ratio Comparison

SMH has a 0.35% expense ratio, which is higher than MGK's 0.05% expense ratio.

Dividends

SMH vs. MGK - Dividend Comparison

SMH's dividend yield for the trailing twelve months is around 0.20%, less than MGK's 0.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MGK Vanguard Mega Cap Growth ETF	0.34%	0.35%	0.43%	0.50%	0.70%	0.41%	0.65%	0.85%	1.12%	1.23%	1.53%	1.43%
SMH VanEck Semiconductor ETF	0.20%	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 MGK in my portfolio?

SMH and MGK have a correlation of 0.74, 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 MGK?

SMH has higher volatility (14.70%) compared to MGK (5.90%). In terms of maximum drawdown, SMH dropped -84.96% vs MGK's -48.43%.

Which ETF is better, SMH or MGK?

On 10-year performance, SMH leads with 34.16% vs 18.26% for MGK. On fees, MGK is cheaper at 0.05% per year. On volatility, MGK has been the lower-risk option at 5.90%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMH or MGK?

Over the 10-year period, SMH has performed better with a 34.16% return vs 18.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMH or MGK?

MGK is cheaper with a 0.05% expense ratio, compared with 0.35% for SMH.

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

MGK has the higher dividend yield at 0.34%, compared with 0.20% for SMH.

What is the main difference between SMH and MGK?

SMH is categorized as Semiconductors, while MGK is Large Cap Growth Equities. SMH tracks MVIS US Listed Semiconductor 25 Index, while MGK tracks CRSP US Mega Cap Growth Index. They also come from different issuers: VanEck and Vanguard. Their fees differ too: 0.35% for SMH and 0.05% for MGK.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (2.29 vs 0.76), 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.