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SMH vs. SPDN
Performance
Return for Risk
Drawdowns
Volatility
Dividends

SMH vs. SPDN

Last updated Jun 9, 2026

SMH (VanEck Semiconductor ETF) and SPDN (Direxion Daily S&P 500 Bear 1x Shares) are both exchange-traded funds - SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index, while SPDN is a Inverse Equities fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, SMH returned 36.92%/yr vs -12.43%/yr for SPDN. At a correlation of -0.77, they often move in opposite directions. SMH charges 0.35%/yr vs 0.50%/yr for SPDN.

Performance

SMH vs. SPDN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Semiconductor ETF (SMH) and Direxion Daily S&P 500 Bear 1x Shares (SPDN). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, SMH achieves a 66.10% return, which is significantly higher than SPDN's -5.89% return. Over the past 10 years, SMH has outperformed SPDN with an annualized return of 36.92%, while SPDN has yielded a comparatively lower -12.43% 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%

SPDN

1D
-0.11%
1M
0.11%
YTD
-5.89%
6M
-5.63%
1Y
-14.82%
3Y*
-12.12%
5Y*
-8.55%
10Y*
-12.43%
*Multi-year figures are annualized to reflect compound growth (CAGR)

SMH vs. SPDN - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
SMH
VanEck Semiconductor ETF		66.10%49.17%39.10%73.38%-33.53%42.13%55.53%64.45%-9.05%38.48%
SPDN
Direxion Daily S&P 500 Bear 1x Shares		-5.89%-11.09%-12.88%-15.04%18.63%-23.72%-24.56%-21.94%5.41%-17.16%

Correlation

The correlation between SMH and SPDN is -0.76, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

-0.76

Correlation (3Y)
Calculated over the trailing 3-year period

-0.77

Correlation (5Y)
Calculated over the trailing 5-year period

-0.80

Correlation (10Y)
Calculated over the trailing 10-year period

-0.77

Correlation (All Time)
Calculated using the full available price history since Jun 8, 2016

-0.77

The correlation between SMH and SPDN has been stable across timeframes, ranging from -0.80 to -0.76 - a consistent structural relationship.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

VanEck Semiconductor ETF

Direxion Daily S&P 500 Bear 1x Shares

Often compared with SMH:
SMH vs. SOXXSMH vs. QQQSMH vs. VGTSMH vs. FSELXSMH vs. SPYSMH vs. SMHXSMH vs. XLK
Often compared with SPDN:
SPDN vs. SHSPDN vs. SPYSPDN vs. SPXUSPDN vs. SDSSPDN vs. VXZSPDN vs. QQQSPDN vs. SQQQ

Return for Risk

SMH vs. SPDN — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
SMH
SMH Risk / Return Rank: 9696
Overall Rank
SMH Sharpe Ratio Rank: 9797
Sharpe Ratio Rank
SMH Sortino Ratio Rank: 9393
Sortino Ratio Rank
SMH Omega Ratio Rank: 9494
Omega Ratio Rank
SMH Calmar Ratio Rank: 9797
Calmar Ratio Rank
SMH Martin Ratio Rank: 9696
Martin Ratio Rank
SPDN
SPDN Risk / Return Rank: 11
Overall Rank
SPDN Sharpe Ratio Rank: 00
Sharpe Ratio Rank
SPDN Sortino Ratio Rank: 11
Sortino Ratio Rank
SPDN Omega Ratio Rank: 11
Omega Ratio Rank
SPDN Calmar Ratio Rank: 22
Calmar Ratio Rank
SPDN Martin Ratio Rank: 11
Martin Ratio Rank
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. SPDN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Semiconductor ETF (SMH) and Direxion Daily S&P 500 Bear 1x Shares (SPDN). 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.

SMHSPDNDifference
Sharpe ratioReturn per unit of total volatility
4.27
-1.21

+5.48

Sortino ratioReturn per unit of downside risk
4.33
-1.74

+6.07

Omega ratioGain probability vs. loss probability

1.62

0.81

+0.81

Calmar ratioReturn relative to maximum drawdown

9.26

-0.84

+10.10

Martin ratioReturn relative to average drawdown

34.80

-1.53

+36.33

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. SPDN - Sharpe Ratio Comparison

The current SMH Sharpe Ratio is 4.27, which is higher than the SPDN Sharpe Ratio of -1.21. The chart below compares the historical Sharpe Ratios of SMH and SPDN, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

SMHSPDNDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

4.27

-1.21

+5.48

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

1.08

-0.51

+1.59

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

1.13

-0.69

+1.82

Sharpe Ratio (All Time)

Calculated using the full available price history

0.33

-0.69

+1.02

Drawdowns

SMH vs. SPDN - Drawdown Comparison

The maximum SMH drawdown since its inception was -84.96%, which is greater than SPDN's maximum drawdown of -75.31%. Use the drawdown chart below to compare losses from any high point for SMH and SPDN.

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Drawdown Indicators

SMHSPDNDifference

Max Drawdown

Largest peak-to-trough decline

-84.96%

-75.31%

-9.65%

Max Drawdown (1Y)

Largest decline over 1 year

-14.93%

-17.73%

+2.80%

Max Drawdown (3Y)

Largest decline over 3 years

-35.74%

-38.24%

+2.50%

Max Drawdown (5Y)

Largest decline over 5 years

-45.30%

-43.85%

-1.45%

Max Drawdown (10Y)

Largest decline over 10 years

-45.30%

-75.31%

+30.01%

Current Drawdown

Current decline from peak

-6.23%

-74.65%

+68.42%

Average Drawdown

Average peak-to-trough decline

-41.07%

-48.57%

+7.50%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.96%

9.71%

-5.75%

Volatility

SMH vs. SPDN - Volatility Comparison

VanEck Semiconductor ETF (SMH) has a higher volatility of 15.45% compared to Direxion Daily S&P 500 Bear 1x Shares (SPDN) at 3.55%. This indicates that SMH's price experiences larger fluctuations and is considered to be riskier than SPDN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

SMHSPDNDifference

Volatility (1M)

Calculated over the trailing 1-month period

15.45%

3.55%

+11.90%

Volatility (6M)

Calculated over the trailing 6-month period

26.71%

9.44%

+17.27%

Volatility (1Y)

Calculated over the trailing 1-year period

32.42%

12.33%

+20.09%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

35.32%

16.90%

+18.42%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

32.75%

18.05%

+14.70%

SMH vs. SPDN - Expense Ratio Comparison

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

Dividends

SMH vs. SPDN - Dividend Comparison

SMH's dividend yield for the trailing twelve months is around 0.18%, less than SPDN's 4.01% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
SPDN
Direxion Daily S&P 500 Bear 1x Shares		4.01%4.06%5.32%5.84%0.96%0.00%0.10%1.89%1.24%0.42%0.00%0.00%

Frequently Asked Questions

SMH and SPDN have a correlation of -0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

SMH has higher volatility (15.45%) compared to SPDN (3.55%). In terms of maximum drawdown, SMH dropped -84.96% vs SPDN's -75.31%.

On 10-year performance, SMH leads with 36.92% vs -12.43% for SPDN. On fees, SMH is cheaper at 0.35% per year. On volatility, SPDN has been the lower-risk option at 3.55%. 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 36.92% return vs -12.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

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

SPDN has the higher dividend yield at 4.01%, compared with 0.18% for SMH.

SMH is categorized as Semiconductors, while SPDN is Inverse Equities. SMH tracks MVIS US Listed Semiconductor 25 Index, while SPDN tracks S&P 500 Index. They also come from different issuers: VanEck and Direxion. Their fees differ too: 0.35% for SMH and 0.50% for SPDN.

SMH currently has the higher Sharpe Ratio (4.27 vs -1.21), 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.

Portfolio Optimizer

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