SMH vs. VBR

Last updated Jun 9, 2026

SMH (VanEck Semiconductor ETF) and VBR (Vanguard Small-Cap Value ETF) are both exchange-traded funds - SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index, while VBR is a Small Cap Value Equities fund tracking the CRSP US Small Cap Value Index. Both are passively managed. Over the past 10 years, SMH returned 36.92%/yr vs 10.50%/yr for VBR. A 0.64 correlation means they provide meaningful diversification when combined. SMH charges 0.35%/yr vs 0.05%/yr for VBR.

Performance

SMH vs. VBR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Semiconductor ETF (SMH) and Vanguard Small-Cap Value ETF (VBR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMH achieves a 66.10% return, which is significantly higher than VBR's 11.45% return. Over the past 10 years, SMH has outperformed VBR with an annualized return of 36.92%, while VBR has yielded a comparatively lower 10.50% 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%

VBR

• 1D: 0.16%
• 1M: 0.48%
• YTD: 11.45%
• 6M: 12.14%
• 1Y: 24.85%
• 3Y*: 15.60%
• 5Y*: 7.78%
• 10Y*: 10.50%

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

SMH vs. VBR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SMH VanEck Semiconductor ETF	66.10%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%
VBR Vanguard Small-Cap Value ETF	11.45%	9.09%	12.40%	16.00%	-9.38%	28.08%	5.90%	22.78%	-12.28%	11.81%

Correlation

The correlation between SMH and VBR is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.49
Correlation (3Y) Calculated over the trailing 3-year period	0.49
Correlation (5Y) Calculated over the trailing 5-year period	0.58
Correlation (10Y) Calculated over the trailing 10-year period	0.58
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004	0.64

The correlation between SMH and VBR shifts across timeframes, from 0.49 (3 years) to 0.64 (all time), reflecting how their relationship changes across market environments.

SMH vs. VBR - Sectors Allocation Comparison

Sectors	SMH	VBR
Technology	100.0%	10.6%
Basic Materials	-	6.3%
Communication Services	-	2.5%
Consumer Cyclical	-	12.4%
Consumer Defensive	-	4.0%
Energy	-	5.2%
Financial Services	-	17.6%
Healthcare	-	7.9%
Industrials	-	18.1%
Real Estate	-	10.1%
Utilities	-	4.8%

Return for Risk

SMH vs. VBR — 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: 97
SMH Sortino Ratio Rank: 93
SMH Omega Ratio Rank: 94
SMH Calmar Ratio Rank: 97
SMH Martin Ratio Rank: 96

VBR

VBR Risk / Return Rank: 57
VBR Sharpe Ratio Rank: 53
VBR Sortino Ratio Rank: 56
VBR Omega Ratio Rank: 51
VBR Calmar Ratio Rank: 62
VBR Martin Ratio Rank: 61

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. VBR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Semiconductor ETF (SMH) and Vanguard Small-Cap Value ETF (VBR). 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	VBR	Difference
Sharpe ratio: Return per unit of total volatility	4.27	1.65	+2.62
Sortino ratio: Return per unit of downside risk	4.33	2.43	+1.90
Omega ratio: Gain probability vs. loss probability	1.62	1.29	+0.33
Calmar ratio: Return relative to maximum drawdown	9.26	2.82	+6.44
Martin ratio: Return relative to average drawdown	34.80	9.94	+24.86
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. VBR - Sharpe Ratio Comparison

The current SMH Sharpe Ratio is 4.27, which is higher than the VBR Sharpe Ratio of 1.65. The chart below compares the historical Sharpe Ratios of SMH and VBR, 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	VBR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.27	1.65	+2.62
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.08	0.40	+0.68
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.13	0.49	+0.65
Sharpe Ratio (All Time) Calculated using the full available price history	0.33	0.42	-0.09

Drawdowns

SMH vs. VBR - Drawdown Comparison

The maximum SMH drawdown since its inception was -84.96%, which is greater than VBR's maximum drawdown of -61.98%. Use the drawdown chart below to compare losses from any high point for SMH and VBR.

Drawdown Indicators

	SMH	VBR	Difference
Max Drawdown Largest peak-to-trough decline	-84.96%	-61.98%	-22.98%
Max Drawdown (1Y) Largest decline over 1 year	-14.93%	-8.85%	-6.08%
Max Drawdown (3Y) Largest decline over 3 years	-35.74%	-24.19%	-11.55%
Max Drawdown (5Y) Largest decline over 5 years	-45.30%	-24.19%	-21.11%
Max Drawdown (10Y) Largest decline over 10 years	-45.30%	-45.28%	-0.02%
Current Drawdown Current decline from peak	-6.23%	-0.95%	-5.28%
Average Drawdown Average peak-to-trough decline	-41.07%	-8.26%	-32.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.96%	2.51%	+1.45%

Volatility

SMH vs. VBR - Volatility Comparison

VanEck Semiconductor ETF (SMH) has a higher volatility of 15.45% compared to Vanguard Small-Cap Value ETF (VBR) at 3.67%. This indicates that SMH's price experiences larger fluctuations and is considered to be riskier than VBR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMH	VBR	Difference
Volatility (1M) Calculated over the trailing 1-month period	15.45%	3.67%	+11.78%
Volatility (6M) Calculated over the trailing 6-month period	26.71%	10.49%	+16.22%
Volatility (1Y) Calculated over the trailing 1-year period	32.42%	15.16%	+17.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.32%	19.77%	+15.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.75%	21.74%	+11.01%

SMH vs. VBR - Expense Ratio Comparison

SMH has a 0.35% expense ratio, which is higher than VBR's 0.05% expense ratio.

Dividends

SMH vs. VBR - Dividend Comparison

SMH's dividend yield for the trailing twelve months is around 0.18%, less than VBR's 1.76% 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%
VBR Vanguard Small-Cap Value ETF	1.76%	1.95%	1.98%	2.12%	2.03%	1.75%	1.68%	2.06%	2.35%	1.79%	1.77%	1.99%

Frequently Asked Questions

Can I hold both SMH and VBR in my portfolio?

SMH and VBR have a correlation of 0.49, 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 VBR?

SMH has higher volatility (15.45%) compared to VBR (3.67%). In terms of maximum drawdown, SMH dropped -84.96% vs VBR's -61.98%.

Which ETF is better, SMH or VBR?

On 10-year performance, SMH leads with 36.92% vs 10.50% for VBR. On fees, VBR is cheaper at 0.05% per year. On volatility, VBR has been the lower-risk option at 3.67%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMH or VBR?

Over the 10-year period, SMH has performed better with a 36.92% return vs 10.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMH or VBR?

VBR is cheaper with a 0.05% expense ratio, compared with 0.35% for SMH.

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

VBR has the higher dividend yield at 1.76%, compared with 0.18% for SMH.

What is the main difference between SMH and VBR?

SMH is categorized as Semiconductors, while VBR is Small Cap Value Equities. SMH tracks MVIS US Listed Semiconductor 25 Index, while VBR tracks CRSP US Small Cap Value Index. They also come from different issuers: VanEck and Vanguard. Their fees differ too: 0.35% for SMH and 0.05% for VBR.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (4.27 vs 1.65), 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.