SMH vs. WDC

Last updated Jun 14, 2026

SMH (VanEck Semiconductor ETF) is Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index, while WDC (Western Digital Corporation) is a stock. Over the past 10 years, SMH returned 37.49%/yr vs 33.87%/yr for WDC. A 0.57 correlation means they provide meaningful diversification when combined.

Performance

SMH vs. WDC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Semiconductor ETF (SMH) and Western Digital Corporation (WDC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMH achieves a 72.15% return, which is significantly lower than WDC's 227.01% return. Over the past 10 years, SMH has outperformed WDC with an annualized return of 37.49%, while WDC has yielded a comparatively lower 33.87% 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%

WDC

• 1D: 6.35%
• 1M: 16.82%
• YTD: 227.01%
• 6M: 219.46%
• 1Y: 913.38%
• 3Y*: 164.18%
• 5Y*: 58.50%
• 10Y*: 33.87%

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

SMH vs. WDC - 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%
WDC Western Digital Corporation	227.01%	283.68%	13.86%	65.99%	-51.62%	17.73%	-10.89%	77.14%	-51.90%	19.83%

Correlation

The correlation between SMH and WDC is 0.63, 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	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.64
Correlation (5Y) Calculated over the trailing 5-year period	0.66
Correlation (10Y) Calculated over the trailing 10-year period	0.65
Correlation (All Time) Calculated using the full available price history since Jun 5, 2000	0.57

The correlation between SMH and WDC has been stable across timeframes, ranging from 0.57 to 0.66 - a consistent structural relationship.

Return for Risk

SMH vs. WDC — 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: 94
SMH Omega Ratio Rank: 94
SMH Calmar Ratio Rank: 97
SMH Martin Ratio Rank: 96

WDC

WDC Risk / Return Rank: 100
WDC Sharpe Ratio Rank: 100
WDC Sortino Ratio Rank: 99
WDC Omega Ratio Rank: 99
WDC Calmar Ratio Rank: 100
WDC Martin Ratio Rank: 100

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. WDC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Semiconductor ETF (SMH) and Western Digital Corporation (WDC). 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	WDC	Difference
Sharpe ratio: Return per unit of total volatility	4.13	14.07	-9.94
Sortino ratio: Return per unit of downside risk	4.26	6.89	-2.63
Omega ratio: Gain probability vs. loss probability	1.60	1.95	-0.35
Calmar ratio: Return relative to maximum drawdown	9.18	44.74	-35.56
Martin ratio: Return relative to average drawdown	33.74	151.81	-118.07

SMH vs. WDC - Sharpe Ratio Comparison

The current SMH Sharpe Ratio is 4.13, which is lower than the WDC Sharpe Ratio of 14.07. The chart below compares the historical Sharpe Ratios of SMH and WDC, 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. WDC - Drawdown Comparison

The maximum SMH drawdown since its inception was -84.96%, smaller than the maximum WDC drawdown of -96.20%. Use the drawdown chart below to compare losses from any high point for SMH and WDC.

Drawdown Indicators

	SMH	WDC	Difference
Max Drawdown Largest peak-to-trough decline	-84.96%	-96.20%	+11.24%
Max Drawdown (1Y) Largest decline over 1 year	-14.93%	-20.59%	+5.66%
Max Drawdown (3Y) Largest decline over 3 years	-35.74%	-49.65%	+13.91%
Max Drawdown (5Y) Largest decline over 5 years	-45.30%	-58.77%	+13.47%
Max Drawdown (10Y) Largest decline over 10 years	-45.30%	-70.49%	+25.19%
Current Drawdown Current decline from peak	-2.81%	-5.22%	+2.41%
Average Drawdown Average peak-to-trough decline	-41.04%	-52.07%	+11.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.06%	6.06%	-2.00%

Volatility

SMH vs. WDC - Volatility Comparison

The current volatility for VanEck Semiconductor ETF (SMH) is 16.25%, while Western Digital Corporation (WDC) has a volatility of 21.76%. This indicates that SMH experiences smaller price fluctuations and is considered to be less risky than WDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMH	WDC	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.25%	21.76%	-5.51%
Volatility (6M) Calculated over the trailing 6-month period	27.73%	53.55%	-25.82%
Volatility (1Y) Calculated over the trailing 1-year period	33.20%	65.47%	-32.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.47%	48.86%	-13.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.82%	48.62%	-15.80%

Dividends

SMH vs. WDC - Dividend Comparison

SMH's dividend yield for the trailing twelve months is around 0.18%, more than WDC's 0.09% 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%
WDC Western Digital Corporation	0.09%	0.19%	0.00%	0.00%	0.00%	0.00%	1.81%	2.36%	5.41%	2.51%	2.94%	3.33%

Frequently Asked Questions

Can I hold both SMH and WDC in my portfolio?

SMH and WDC have a correlation of 0.63, 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 WDC?

WDC has higher volatility (21.76%) compared to SMH (16.25%). In terms of maximum drawdown, SMH dropped -84.96% vs WDC's -96.20%.

Which has better risk-adjusted returns?

WDC currently has the higher Sharpe Ratio (14.07 vs 4.13), 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.