SMH vs. SHLD

Last updated Jul 21, 2026

SMH (VanEck Semiconductor ETF) and SHLD (Global X Defense Tech ETF) are both exchange-traded funds - SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index, while SHLD is a Aerospace & Defense fund tracking the Global X Defense Tech Index. Both are passively managed. Over the past year, SMH returned 93.09% vs -2.37% for SHLD. At a 0.27 correlation, their price movements are largely independent. SMH charges 0.35%/yr vs 0.50%/yr for SHLD.

Performance

SMH vs. SHLD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Semiconductor ETF (SMH) and Global X Defense Tech ETF (SHLD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMH achieves a 55.17% return, which is significantly higher than SHLD's -7.05% return.

SMH

• 1D: 0.41%
• 1M: -15.31%
• 6M: 39.57%
• YTD: 55.17%
• 1Y: 93.09%
• 3Y*: 54.43%
• 5Y*: 34.99%
• 10Y*: 34.79%
• ALL TIME*: 11.21%

SHLD

• 1D: -0.05%
• 1M: -3.33%
• 6M: -22.70%
• YTD: -7.05%
• 1Y: -2.37%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 37.29%

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

SMH vs. SHLD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
SMH VanEck Semiconductor ETF	55.17%	49.17%	39.10%	17.79%
SHLD Global X Defense Tech ETF	-7.05%	74.16%	35.03%	12.89%

Correlation

The correlation between SMH and SHLD 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 (All Time) Calculated using the full available price history since Sep 13, 2023	0.27

SMH vs. SHLD - Sectors Allocation Comparison

Sectors	SMH	SHLD
Technology	100.0%	11.6%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	88.4%
Real Estate	-	-
Utilities	-	-

Return for Risk

SMH vs. SHLD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SMH

SMH Risk / Return Rank: 90
SMH Sharpe Ratio Rank: 92
SMH Sortino Ratio Rank: 84
SMH Omega Ratio Rank: 86
SMH Calmar Ratio Rank: 95
SMH Martin Ratio Rank: 94

SHLD

SHLD Risk / Return Rank: 9
SHLD Sharpe Ratio Rank: 9
SHLD Sortino Ratio Rank: 9
SHLD Omega Ratio Rank: 9
SHLD Calmar Ratio Rank: 9
SHLD Martin Ratio Rank: 9

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. SHLD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Semiconductor ETF (SMH) and Global X Defense Tech ETF (SHLD). 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	SHLD	Difference
Sharpe ratio: Return per unit of total volatility	2.53	-0.10	+2.62
Sortino ratio: Return per unit of downside risk	2.87	0.04	+2.83
Omega ratio: Gain probability vs. loss probability	1.39	1.00	+0.39
Calmar ratio: Return relative to maximum drawdown	5.57	-0.09	+5.67
Martin ratio: Return relative to average drawdown	18.66	-0.23	+18.89

SMH vs. SHLD - Sharpe Ratio Comparison

The current SMH Sharpe Ratio is 2.53, which is higher than the SHLD Sharpe Ratio of -0.10. The chart below compares the historical Sharpe Ratios of SMH and SHLD, 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. SHLD - Drawdown Comparison

The maximum SMH drawdown since its inception was -84.96%, which is greater than SHLD's maximum drawdown of -25.40%. Use the drawdown chart below to compare losses from any high point for SMH and SHLD.

Drawdown Indicators

	SMH	SHLD	Difference
Max Drawdown Largest peak-to-trough decline	-84.96%	-25.40%	-59.56%
Max Drawdown (1Y) Largest decline over 1 year	-16.80%	-25.40%	+8.60%
Max Drawdown (3Y) Largest decline over 3 years	-35.74%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-45.30%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-45.30%	—	—
Current Drawdown Current decline from peak	-16.46%	-22.81%	+6.35%
Average Drawdown Average peak-to-trough decline	-40.92%	-3.95%	-36.97%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.01%	10.49%	-5.48%

Volatility

SMH vs. SHLD - Volatility Comparison

VanEck Semiconductor ETF (SMH) has a higher volatility of 16.43% compared to Global X Defense Tech ETF (SHLD) at 8.21%. This indicates that SMH's price experiences larger fluctuations and is considered to be riskier than SHLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMH	SHLD	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.43%	8.21%	+8.22%
Volatility (6M) Calculated over the trailing 6-month period	31.63%	19.76%	+11.87%
Volatility (1Y) Calculated over the trailing 1-year period	37.10%	25.13%	+11.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	36.22%	21.51%	+14.71%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	33.16%	21.51%	+11.65%

SMH vs. SHLD - Expense Ratio Comparison

SMH has a 0.35% expense ratio, which is lower than SHLD's 0.50% expense ratio.

Dividends

SMH vs. SHLD - Dividend Comparison

SMH's dividend yield for the trailing twelve months is around 0.20%, less than SHLD's 0.71% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SHLD Global X Defense Tech ETF	0.71%	0.55%	0.53%	0.26%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 SHLD in my portfolio?

SMH and SHLD 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 SHLD?

SMH has higher volatility (16.43%) compared to SHLD (8.21%). In terms of maximum drawdown, SMH dropped -84.96% vs SHLD's -25.40%.

Which ETF is better, SMH or SHLD?

On 1-year performance, SMH leads with 93.09% vs -2.37% for SHLD. On fees, SMH is cheaper at 0.35% per year. On volatility, SHLD has been the lower-risk option at 8.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMH or SHLD?

Over the 1-year period, SMH has performed better with a 93.09% return vs -2.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMH or SHLD?

SMH is cheaper with a 0.35% expense ratio, compared with 0.50% for SHLD.

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

SHLD has the higher dividend yield at 0.71%, compared with 0.20% for SMH.

What is the main difference between SMH and SHLD?

SMH is categorized as Semiconductors, while SHLD is Aerospace & Defense. SMH tracks MVIS US Listed Semiconductor 25 Index, while SHLD tracks Global X Defense Tech Index. They also come from different issuers: VanEck and Global X. Their fees differ too: 0.35% for SMH and 0.50% for SHLD.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (2.53 vs -0.10), 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.