SMH vs. SCHD

Last updated Jun 4, 2026

SMH (VanEck Semiconductor ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 10 years, SMH returned 37.68%/yr vs 12.77%/yr for SCHD. A 0.58 correlation means they provide meaningful diversification when combined. SMH charges 0.35%/yr vs 0.06%/yr for SCHD.

Performance

SMH vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Semiconductor ETF (SMH) and Schwab U.S. Dividend Equity ETF (SCHD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMH achieves a 77.13% return, which is significantly higher than SCHD's 19.01% return. Over the past 10 years, SMH has outperformed SCHD with an annualized return of 37.68%, while SCHD has yielded a comparatively lower 12.77% annualized return.

SMH

• 1D: 0.90%
• 1M: 25.87%
• YTD: 77.13%
• 6M: 75.61%
• 1Y: 157.20%
• 3Y*: 64.17%
• 5Y*: 39.21%
• 10Y*: 37.68%

SCHD

• 1D: 0.00%
• 1M: 2.70%
• YTD: 19.01%
• 6M: 18.63%
• 1Y: 27.16%
• 3Y*: 15.09%
• 5Y*: 8.36%
• 10Y*: 12.77%

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

SMH vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SMH VanEck Semiconductor ETF	77.13%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%
SCHD Schwab U.S. Dividend Equity ETF	19.01%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between SMH and SCHD is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.17
Correlation (3Y) Calculated over the trailing 3-year period	0.28
Correlation (5Y) Calculated over the trailing 5-year period	0.44
Correlation (10Y) Calculated over the trailing 10-year period	0.53
Correlation (All Time) Calculated using the full available price history since Oct 21, 2011	0.58

Over the past year, the correlation between SMH and SCHD has dropped to 0.17 - well below their long-term average of 0.58, suggesting their price drivers have been diverging.

SMH vs. SCHD - Sectors Allocation Comparison

Sectors	SMH	SCHD
Technology	100.0%	16.4%
Basic Materials	-	1.2%
Communication Services	-	6.3%
Consumer Cyclical	-	6.3%
Consumer Defensive	-	19.2%
Energy	-	16.2%
Financial Services	-	9.3%
Healthcare	-	18.8%
Industrials	-	7.5%
Real Estate	-	-
Utilities	-	0.0%

Return for Risk

SMH vs. SCHD — 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: 98
SMH Sortino Ratio Rank: 95
SMH Omega Ratio Rank: 95
SMH Calmar Ratio Rank: 97
SMH Martin Ratio Rank: 96

SCHD

SCHD Risk / Return Rank: 80
SCHD Sharpe Ratio Rank: 75
SCHD Sortino Ratio Rank: 84
SCHD Omega Ratio Rank: 73
SCHD Calmar Ratio Rank: 91
SCHD Martin Ratio Rank: 75

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. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Semiconductor ETF (SMH) and Schwab U.S. Dividend Equity ETF (SCHD). 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	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	5.19	2.49	+2.69
Sortino ratio: Return per unit of downside risk	5.22	3.87	+1.35
Omega ratio: Gain probability vs. loss probability	1.72	1.45	+0.28
Calmar ratio: Return relative to maximum drawdown	10.59	5.91	+4.68
Martin ratio: Return relative to average drawdown	40.63	14.53	+26.10
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. SCHD - Sharpe Ratio Comparison

The current SMH Sharpe Ratio is 5.19, which is higher than the SCHD Sharpe Ratio of 2.49. The chart below compares the historical Sharpe Ratios of SMH and SCHD, 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	SCHD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	5.19	2.49	+2.69
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.13	0.58	+0.54
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.16	0.77	+0.39
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.86	-0.52

Drawdowns

SMH vs. SCHD - Drawdown Comparison

The maximum SMH drawdown since its inception was -84.96%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for SMH and SCHD.

Drawdown Indicators

	SMH	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-84.96%	-33.37%	-51.59%
Max Drawdown (1Y) Largest decline over 1 year	-14.93%	-4.61%	-10.32%
Max Drawdown (3Y) Largest decline over 3 years	-35.74%	-16.13%	-19.61%
Max Drawdown (5Y) Largest decline over 5 years	-45.30%	-16.85%	-28.45%
Max Drawdown (10Y) Largest decline over 10 years	-45.30%	-33.37%	-11.93%
Current Drawdown Current decline from peak	0.00%	-1.40%	+1.40%
Average Drawdown Average peak-to-trough decline	-41.09%	-3.32%	-37.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.89%	1.88%	+2.01%

Volatility

SMH vs. SCHD - Volatility Comparison

VanEck Semiconductor ETF (SMH) has a higher volatility of 11.47% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 2.66%. This indicates that SMH's price experiences larger fluctuations and is considered to be riskier than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMH	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.47%	2.66%	+8.81%
Volatility (6M) Calculated over the trailing 6-month period	24.29%	7.66%	+16.63%
Volatility (1Y) Calculated over the trailing 1-year period	30.56%	10.96%	+19.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.01%	14.38%	+20.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.57%	16.72%	+15.85%

SMH vs. SCHD - Expense Ratio Comparison

SMH has a 0.35% expense ratio, which is higher than SCHD's 0.06% expense ratio.

Dividends

SMH vs. SCHD - Dividend Comparison

SMH's dividend yield for the trailing twelve months is around 0.17%, less than SCHD's 3.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHD Schwab U.S. Dividend Equity ETF	3.26%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%
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

Can I hold both SMH and SCHD in my portfolio?

SMH and SCHD have a correlation of 0.17, 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 SCHD?

SMH has higher volatility (11.47%) compared to SCHD (2.66%). In terms of maximum drawdown, SMH dropped -84.96% vs SCHD's -33.37%.

Which ETF is better, SMH or SCHD?

On 10-year performance, SMH leads with 37.68% vs 12.77% for SCHD. On fees, SCHD is cheaper at 0.06% per year. On volatility, SCHD has been the lower-risk option at 2.66%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMH or SCHD?

Over the 10-year period, SMH has performed better with a 37.68% return vs 12.77%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMH or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.35% for SMH.

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

SCHD has the higher dividend yield at 3.26%, compared with 0.17% for SMH.

What is the main difference between SMH and SCHD?

SMH is categorized as Semiconductors, while SCHD is Dividend. SMH tracks MVIS US Listed Semiconductor 25 Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: VanEck and Charles Schwab. Their fees differ too: 0.35% for SMH and 0.06% for SCHD.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (5.19 vs 2.49), 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.