SMH vs. SHYG
SMH (VanEck Semiconductor ETF) and SHYG (iShares 0-5 Year High Yield Corporate Bond ETF) are both exchange-traded funds - SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index, while SHYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield 0-5 Index. Both are passively managed. Over the past 10 years, SMH returned 34.79%/yr vs 4.97%/yr for SHYG. A 0.54 correlation means they provide meaningful diversification when combined. SMH charges 0.35%/yr vs 0.30%/yr for SHYG.
Performance
SMH vs. SHYG - Performance Comparison
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Returns By Period
In the year-to-date period, SMH achieves a 55.17% return, which is significantly higher than SHYG's 1.99% return. Over the past 10 years, SMH has outperformed SHYG with an annualized return of 34.79%, while SHYG has yielded a comparatively lower 4.97% annualized 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%
SHYG
- 1D
- 0.00%
- 1M
- 0.10%
- 6M
- 1.56%
- YTD
- 1.99%
- 1Y
- 5.39%
- 3Y*
- 7.74%
- 5Y*
- 4.85%
- 10Y*
- 4.97%
- ALL TIME*
- 4.41%
SMH vs. SHYG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SMH VanEck Semiconductor ETF | 55.17% | 49.17% | 39.10% | 73.38% | -33.53% | 42.13% | 55.53% | 64.45% | -9.05% | 38.48% |
SHYG iShares 0-5 Year High Yield Corporate Bond ETF | 1.99% | 7.94% | 8.17% | 10.38% | -4.71% | 4.60% | 3.15% | 9.93% | 0.02% | 5.11% |
Correlation
The correlation between SMH and SHYG is 0.52, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.52 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.48 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.57 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.56 |
Correlation (All Time) Calculated using the full available price history since Oct 17, 2013 | 0.54 |
The correlation between SMH and SHYG has been stable across timeframes, ranging from 0.48 to 0.57 - a consistent structural relationship.
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Return for Risk
SMH vs. SHYG — Risk / Return Rank
SMH
SHYG
SMH vs. SHYG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for VanEck Semiconductor ETF (SMH) and iShares 0-5 Year High Yield Corporate Bond ETF (SHYG). 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 | SHYG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.81 | ||
| Sortino ratioReturn per unit of downside risk | +0.22 | ||
| Omega ratioGain probability vs. loss probability | 1.39 | 1.34 | +0.05 |
| Calmar ratioReturn relative to maximum drawdown | 5.57 | 3.10 | +2.48 |
| Martin ratioReturn relative to average drawdown | 18.66 | 13.53 | +5.13 |
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Drawdowns
SMH vs. SHYG - Drawdown Comparison
The maximum SMH drawdown since its inception was -84.96%, which is greater than SHYG's maximum drawdown of -19.26%. Use the drawdown chart below to compare losses from any high point for SMH and SHYG.
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Drawdown Indicators
| SMH | SHYG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -84.96% | -19.26% | -65.70% |
Max Drawdown (1Y)Largest decline over 1 year | -16.80% | -1.75% | -15.05% |
Max Drawdown (3Y)Largest decline over 3 years | -35.74% | -4.53% | -31.21% |
Max Drawdown (5Y)Largest decline over 5 years | -45.30% | -9.39% | -35.91% |
Max Drawdown (10Y)Largest decline over 10 years | -45.30% | -19.26% | -26.04% |
Current DrawdownCurrent decline from peak | -16.46% | -0.12% | -16.34% |
Average DrawdownAverage peak-to-trough decline | -40.92% | -1.43% | -39.49% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.01% | 0.40% | +4.61% |
Volatility
SMH vs. SHYG - Volatility Comparison
VanEck Semiconductor ETF (SMH) has a higher volatility of 16.43% compared to iShares 0-5 Year High Yield Corporate Bond ETF (SHYG) at 0.53%. This indicates that SMH's price experiences larger fluctuations and is considered to be riskier than SHYG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SMH | SHYG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 16.43% | 0.53% | +15.90% |
Volatility (6M)Calculated over the trailing 6-month period | 31.63% | 2.59% | +29.04% |
Volatility (1Y)Calculated over the trailing 1-year period | 37.10% | 3.15% | +33.95% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 36.22% | 5.73% | +30.49% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 33.16% | 6.39% | +26.77% |
SMH vs. SHYG - Expense Ratio Comparison
SMH has a 0.35% expense ratio, which is higher than SHYG's 0.30% expense ratio.
Dividends
SMH vs. SHYG - Dividend Comparison
SMH's dividend yield for the trailing twelve months is around 0.20%, less than SHYG's 7.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SHYG iShares 0-5 Year High Yield Corporate Bond ETF | 7.01% | 7.03% | 6.93% | 6.54% | 5.57% | 4.83% | 5.07% | 5.33% | 5.90% | 5.49% | 5.53% | 5.17% |
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
SMH and SHYG have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SMH has higher volatility (16.43%) compared to SHYG (0.53%). In terms of maximum drawdown, SMH dropped -84.96% vs SHYG's -19.26%.
On 10-year performance, SMH leads with 34.79% vs 4.97% for SHYG. On fees, SHYG is cheaper at 0.30% per year. On volatility, SHYG has been the lower-risk option at 0.53%. 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 34.79% return vs 4.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SHYG is cheaper with a 0.30% expense ratio, compared with 0.35% for SMH.
SHYG has the higher dividend yield at 7.01%, compared with 0.20% for SMH.
SMH is categorized as Semiconductors, while SHYG is High Yield Bonds. SMH tracks MVIS US Listed Semiconductor 25 Index, while SHYG tracks Markit iBoxx USD Liquid High Yield 0-5 Index. They also come from different issuers: VanEck and iShares. Their fees differ too: 0.35% for SMH and 0.30% for SHYG.
SMH currently has the higher Sharpe Ratio (2.53 vs 1.72), 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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