SMH vs. TIP
SMH (VanEck Semiconductor ETF) and TIP (iShares TIPS Bond ETF) are both exchange-traded funds - SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index, while TIP is a Inflation-Protected Bonds fund tracking the ICE U.S. Treasury Inflation Linked Bond Index. Both are passively managed. Over the past 10 years, SMH returned 37.49%/yr vs 2.53%/yr for TIP. At a correlation of -0.10, they often move in opposite directions. SMH charges 0.35%/yr vs 0.18%/yr for TIP.
Performance
SMH vs. TIP - Performance Comparison
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Returns By Period
In the year-to-date period, SMH achieves a 72.15% return, which is significantly higher than TIP's 1.40% return. Over the past 10 years, SMH has outperformed TIP with an annualized return of 37.49%, while TIP has yielded a comparatively lower 2.53% annualized return.
SMH
- 1D
- 1.72%
- 1M
- 7.20%
- YTD
- 72.15%
- 6M
- 75.62%
- 1Y
- 141.99%
- 3Y*
- 60.05%
- 5Y*
- 38.42%
- 10Y*
- 37.49%
TIP
- 1D
- 0.01%
- 1M
- -0.11%
- YTD
- 1.40%
- 6M
- 1.42%
- 1Y
- 4.76%
- 3Y*
- 4.00%
- 5Y*
- 0.91%
- 10Y*
- 2.53%
SMH vs. TIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SMH VanEck Semiconductor ETF | 72.15% | 49.17% | 39.10% | 73.38% | -33.53% | 42.13% | 55.53% | 64.45% | -9.05% | 38.48% |
TIP iShares TIPS Bond ETF | 1.40% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 2.92% |
Correlation
The correlation between SMH and TIP is 0.08, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.08 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.08 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.10 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.02 |
Correlation (All Time) Calculated using the full available price history since Dec 5, 2003 | -0.10 |
The correlation between SMH and TIP shifts across timeframes, from -0.10 (all time) to 0.10 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
SMH vs. TIP — Risk / Return Rank
SMH
TIP
SMH vs. TIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for VanEck Semiconductor ETF (SMH) and iShares TIPS Bond ETF (TIP). 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 | TIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.76 | ||
| Sortino ratioReturn per unit of downside risk | +2.15 | ||
| Omega ratioGain probability vs. loss probability | 1.60 | 1.24 | +0.36 |
| Calmar ratioReturn relative to maximum drawdown | 9.18 | 2.34 | +6.84 |
| Martin ratioReturn relative to average drawdown | 33.74 | 7.00 | +26.74 |
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Drawdowns
SMH vs. TIP - Drawdown Comparison
The maximum SMH drawdown since its inception was -84.96%, which is greater than TIP's maximum drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for SMH and TIP.
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Drawdown Indicators
| SMH | TIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -84.96% | -14.57% | -70.39% |
Max Drawdown (1Y)Largest decline over 1 year | -14.93% | -1.98% | -12.95% |
Max Drawdown (3Y)Largest decline over 3 years | -35.74% | -4.54% | -31.20% |
Max Drawdown (5Y)Largest decline over 5 years | -45.30% | -14.51% | -30.79% |
Max Drawdown (10Y)Largest decline over 10 years | -45.30% | -14.51% | -30.79% |
Current DrawdownCurrent decline from peak | -2.81% | -0.46% | -2.35% |
Average DrawdownAverage peak-to-trough decline | -41.04% | -3.43% | -37.61% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.06% | 0.66% | +3.40% |
Volatility
SMH vs. TIP - Volatility Comparison
VanEck Semiconductor ETF (SMH) has a higher volatility of 16.25% compared to iShares TIPS Bond ETF (TIP) at 1.03%. This indicates that SMH's price experiences larger fluctuations and is considered to be riskier than TIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SMH | TIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 16.25% | 1.03% | +15.22% |
Volatility (6M)Calculated over the trailing 6-month period | 27.73% | 2.32% | +25.41% |
Volatility (1Y)Calculated over the trailing 1-year period | 33.20% | 3.39% | +29.81% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 35.47% | 6.21% | +29.26% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 32.82% | 5.74% | +27.08% |
SMH vs. TIP - Expense Ratio Comparison
SMH has a 0.35% expense ratio, which is higher than TIP's 0.18% expense ratio.
Dividends
SMH vs. TIP - Dividend Comparison
SMH's dividend yield for the trailing twelve months is around 0.18%, less than TIP's 3.76% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
TIP iShares TIPS Bond ETF | 3.76% | 3.46% | 2.52% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% |
Frequently Asked Questions
SMH and TIP have a correlation of 0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SMH has higher volatility (16.25%) compared to TIP (1.03%). In terms of maximum drawdown, SMH dropped -84.96% vs TIP's -14.57%.
On 10-year performance, SMH leads with 37.49% vs 2.53% for TIP. On fees, TIP is cheaper at 0.18% per year. On volatility, TIP has been the lower-risk option at 1.03%. 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 37.49% return vs 2.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TIP is cheaper with a 0.18% expense ratio, compared with 0.35% for SMH.
TIP has the higher dividend yield at 3.76%, compared with 0.18% for SMH.
SMH is categorized as Semiconductors, while TIP is Inflation-Protected Bonds. SMH tracks MVIS US Listed Semiconductor 25 Index, while TIP tracks ICE U.S. Treasury Inflation Linked Bond Index. They also come from different issuers: VanEck and iShares. Their fees differ too: 0.35% for SMH and 0.18% for TIP.
SMH currently has the higher Sharpe Ratio (4.13 vs 1.37), 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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