SMH vs. XSD

Last updated Jun 4, 2026

SMH (VanEck Semiconductor ETF) and XSD (SPDR S&P Semiconductor ETF) are both Semiconductors funds - SMH tracks the MVIS US Listed Semiconductor 25 Index while XSD tracks the S&P Semiconductor Select Industry. Both are passively managed. Over the past 10 years, SMH returned 37.68%/yr vs 31.10%/yr for XSD. Their correlation of 0.91 suggests significant overlap in exposure. Both charge a 0.35% expense ratio.

Performance

SMH vs. XSD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Semiconductor ETF (SMH) and SPDR S&P Semiconductor ETF (XSD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMH achieves a 77.13% return, which is significantly lower than XSD's 102.14% return. Over the past 10 years, SMH has outperformed XSD with an annualized return of 37.68%, while XSD has yielded a comparatively lower 31.10% annualized return.

SMH

• 1D: 0.90%
• 1M: 25.87%
• YTD: 77.13%
• 6M: 75.61%
• 1Y: 157.20%
• 3Y*: 64.17%
• 5Y*: 39.21%
• 10Y*: 37.68%

XSD

• 1D: 1.51%
• 1M: 30.91%
• YTD: 102.14%
• 6M: 92.84%
• 1Y: 180.25%
• 3Y*: 46.41%
• 5Y*: 29.69%
• 10Y*: 31.10%

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

SMH vs. XSD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SMH VanEck Semiconductor ETF	77.13%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%
XSD SPDR S&P Semiconductor ETF	102.14%	29.85%	10.75%	34.87%	-30.92%	42.54%	61.95%	64.66%	-6.35%	25.21%

Correlation

The correlation between SMH and XSD is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.92
Correlation (All Time) Calculated using the full available price history since Feb 7, 2006	0.91

The correlation between SMH and XSD has been stable across timeframes, ranging from 0.85 to 0.92 - a consistent structural relationship.

SMH vs. XSD - Sectors Allocation Comparison

Sectors	SMH	XSD
Technology	100.0%	97.8%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	2.2%
Financial Services	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

SMH vs. XSD — 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: 98
SMH Sortino Ratio Rank: 95
SMH Omega Ratio Rank: 95
SMH Calmar Ratio Rank: 97
SMH Martin Ratio Rank: 96

XSD

XSD Risk / Return Rank: 95
XSD Sharpe Ratio Rank: 97
XSD Sortino Ratio Rank: 94
XSD Omega Ratio Rank: 93
XSD Calmar Ratio Rank: 96
XSD Martin Ratio Rank: 96

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. XSD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Semiconductor ETF (SMH) and SPDR S&P Semiconductor ETF (XSD). 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	XSD	Difference
Sharpe ratio Return per unit of total volatility	5.19	5.00	+0.18
Sortino ratio Return per unit of downside risk	5.22	5.03	+0.19
Omega ratio Gain probability vs. loss probability	1.72	1.65	+0.08
Calmar ratio Return relative to maximum drawdown	10.59	9.75	+0.84
Martin ratio Return relative to average drawdown	40.63	33.91	+6.72
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. XSD - Sharpe Ratio Comparison

The current SMH Sharpe Ratio is 5.19, which is comparable to the XSD Sharpe Ratio of 5.00. The chart below compares the historical Sharpe Ratios of SMH and XSD, 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	XSD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	5.19	5.00	+0.18
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.13	0.78	+0.35
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.16	0.89	+0.27
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.44	-0.10

Drawdowns

SMH vs. XSD - Drawdown Comparison

The maximum SMH drawdown since its inception was -84.96%, which is greater than XSD's maximum drawdown of -64.56%. Use the drawdown chart below to compare losses from any high point for SMH and XSD.

Drawdown Indicators

	SMH	XSD	Difference
Max Drawdown Largest peak-to-trough decline	-84.96%	-64.56%	-20.40%
Max Drawdown (1Y) Largest decline over 1 year	-14.93%	-18.61%	+3.68%
Max Drawdown (3Y) Largest decline over 3 years	-35.74%	-41.25%	+5.51%
Max Drawdown (5Y) Largest decline over 5 years	-45.30%	-42.27%	-3.03%
Max Drawdown (10Y) Largest decline over 10 years	-45.30%	-42.27%	-3.03%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-41.09%	-13.74%	-27.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.89%	5.34%	-1.45%

Volatility

SMH vs. XSD - Volatility Comparison

The current volatility for VanEck Semiconductor ETF (SMH) is 11.47%, while SPDR S&P Semiconductor ETF (XSD) has a volatility of 14.94%. This indicates that SMH experiences smaller price fluctuations and is considered to be less risky than XSD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMH	XSD	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.47%	14.94%	-3.47%
Volatility (6M) Calculated over the trailing 6-month period	24.29%	27.89%	-3.60%
Volatility (1Y) Calculated over the trailing 1-year period	30.56%	36.39%	-5.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.01%	38.25%	-3.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.57%	34.96%	-2.39%

SMH vs. XSD - Expense Ratio Comparison

Both SMH and XSD have an expense ratio of 0.35%.

Dividends

SMH vs. XSD - Dividend Comparison

SMH's dividend yield for the trailing twelve months is around 0.17%, more than XSD's 0.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SMH VanEck Semiconductor ETF	0.17%	0.31%	0.44%	0.60%	1.18%	0.51%	0.69%	1.50%	1.88%	1.43%	0.80%	2.14%
XSD SPDR S&P Semiconductor ETF	0.12%	0.26%	0.20%	0.31%	0.44%	0.10%	0.26%	0.51%	1.16%	0.59%	0.64%	0.58%

Frequently Asked Questions

Can I hold both SMH and XSD in my portfolio?

SMH and XSD have a correlation of 0.85, 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 XSD?

XSD has higher volatility (14.94%) compared to SMH (11.47%). In terms of maximum drawdown, SMH dropped -84.96% vs XSD's -64.56%.

Which ETF is better, SMH or XSD?

On 10-year performance, SMH leads with 37.68% vs 31.10% for XSD. Both ETFs have the same 0.35% expense ratio. On volatility, SMH has been the lower-risk option at 11.47%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMH or XSD?

Over the 10-year period, SMH has performed better with a 37.68% return vs 31.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMH or XSD?

SMH and XSD have the same expense ratio: 0.35% per year.

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

SMH has the higher dividend yield at 0.17%, compared with 0.12% for XSD.

What is the main difference between SMH and XSD?

SMH tracks MVIS US Listed Semiconductor 25 Index, while XSD tracks S&P Semiconductor Select Industry. They also come from different issuers: VanEck and State Street.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (5.19 vs 5.00), 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.