SMHB vs. VGT

Last updated Jun 4, 2026

SMHB (ETRACS 2xMonthly Pay Leveraged US Small Cap High Dividend ETN Series B) and VGT (Vanguard Information Technology ETF) are both exchange-traded funds - SMHB is a Leveraged Equities fund tracking the Solactive US Small Cap High Dividend Index (200%), while VGT is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index. Both are passively managed. Over the past 5 years, SMHB returned -6.36%/yr vs 22.23%/yr for VGT. At a 0.44 correlation, their price movements are largely independent. SMHB charges 0.85%/yr vs 0.09%/yr for VGT.

Performance

SMHB vs. VGT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ETRACS 2xMonthly Pay Leveraged US Small Cap High Dividend ETN Series B (SMHB) and Vanguard Information Technology ETF (VGT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMHB achieves a 5.72% return, which is significantly lower than VGT's 31.64% return.

SMHB

• 1D: -1.45%
• 1M: -1.99%
• YTD: 5.72%
• 6M: 0.84%
• 1Y: 11.36%
• 3Y*: 9.31%
• 5Y*: -6.36%
• 10Y*: —

VGT

• 1D: -1.48%
• 1M: 18.07%
• YTD: 31.64%
• 6M: 30.51%
• 1Y: 60.15%
• 3Y*: 33.48%
• 5Y*: 22.23%
• 10Y*: 25.78%

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

SMHB vs. VGT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
SMHB ETRACS 2xMonthly Pay Leveraged US Small Cap High Dividend ETN Series B	5.72%	-7.75%	-15.85%	35.96%	-36.03%	68.86%	-43.21%	13.05%	-24.78%
VGT Vanguard Information Technology ETF	31.64%	21.77%	29.30%	52.66%	-29.70%	30.45%	46.04%	48.62%	-6.23%

Correlation

The correlation between SMHB and VGT is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.29
Correlation (3Y) Calculated over the trailing 3-year period	0.33
Correlation (5Y) Calculated over the trailing 5-year period	0.46
Correlation (All Time) Calculated using the full available price history since Nov 15, 2018	0.44

The correlation between SMHB and VGT shifts across timeframes, from 0.29 (1 year) to 0.46 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

SMHB vs. VGT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SMHB

SMHB Risk / Return Rank: 14
SMHB Sharpe Ratio Rank: 13
SMHB Sortino Ratio Rank: 14
SMHB Omega Ratio Rank: 14
SMHB Calmar Ratio Rank: 14
SMHB Martin Ratio Rank: 14

VGT

VGT Risk / Return Rank: 76
VGT Sharpe Ratio Rank: 87
VGT Sortino Ratio Rank: 79
VGT Omega Ratio Rank: 78
VGT Calmar Ratio Rank: 72
VGT Martin Ratio Rank: 64

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.

SMHB vs. VGT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ETRACS 2xMonthly Pay Leveraged US Small Cap High Dividend ETN Series B (SMHB) and Vanguard Information Technology ETF (VGT). 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.

	SMHB	VGT	Difference
Sharpe ratio: Return per unit of total volatility	0.29	2.95	-2.65
Sortino ratio: Return per unit of downside risk	0.70	3.63	-2.93
Omega ratio: Gain probability vs. loss probability	1.08	1.47	-0.39
Calmar ratio: Return relative to maximum drawdown	0.45	3.69	-3.23
Martin ratio: Return relative to average drawdown	1.10	11.77	-10.67
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SMHB vs. VGT - Sharpe Ratio Comparison

The current SMHB Sharpe Ratio is 0.29, which is lower than the VGT Sharpe Ratio of 2.95. The chart below compares the historical Sharpe Ratios of SMHB and VGT, 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

	SMHB	VGT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.29	2.95	-2.65
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.13	0.89	-1.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.05	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.10	0.68	-0.78

Drawdowns

SMHB vs. VGT - Drawdown Comparison

The maximum SMHB drawdown since its inception was -90.30%, which is greater than VGT's maximum drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for SMHB and VGT.

Drawdown Indicators

	SMHB	VGT	Difference
Max Drawdown Largest peak-to-trough decline	-90.30%	-54.63%	-35.67%
Max Drawdown (1Y) Largest decline over 1 year	-25.16%	-16.40%	-8.76%
Max Drawdown (3Y) Largest decline over 3 years	-45.05%	-27.23%	-17.82%
Max Drawdown (5Y) Largest decline over 5 years	-58.85%	-35.07%	-23.78%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.07%	—
Current Drawdown Current decline from peak	-41.81%	-1.48%	-40.33%
Average Drawdown Average peak-to-trough decline	-37.21%	-7.95%	-29.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.38%	5.13%	+5.25%

Volatility

SMHB vs. VGT - Volatility Comparison

ETRACS 2xMonthly Pay Leveraged US Small Cap High Dividend ETN Series B (SMHB) has a higher volatility of 7.35% compared to Vanguard Information Technology ETF (VGT) at 6.39%. This indicates that SMHB's price experiences larger fluctuations and is considered to be riskier than VGT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMHB	VGT	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.35%	6.39%	+0.96%
Volatility (6M) Calculated over the trailing 6-month period	25.74%	16.07%	+9.67%
Volatility (1Y) Calculated over the trailing 1-year period	38.92%	20.57%	+18.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	48.93%	25.18%	+23.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	66.33%	24.60%	+41.73%

SMHB vs. VGT - Expense Ratio Comparison

SMHB has a 0.85% expense ratio, which is higher than VGT's 0.09% expense ratio.

Dividends

SMHB vs. VGT - Dividend Comparison

SMHB's dividend yield for the trailing twelve months is around 21.00%, more than VGT's 0.31% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SMHB ETRACS 2xMonthly Pay Leveraged US Small Cap High Dividend ETN Series B	21.00%	22.22%	21.95%	15.27%	24.18%	12.22%	16.86%	19.97%	0.91%	0.00%	0.00%	0.00%
VGT Vanguard Information Technology ETF	0.31%	0.40%	0.60%	0.65%	0.91%	0.64%	0.82%	1.11%	1.29%	0.99%	1.31%	1.28%

Frequently Asked Questions

Can I hold both SMHB and VGT in my portfolio?

SMHB and VGT have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SMHB or VGT?

SMHB has higher volatility (7.35%) compared to VGT (6.39%). In terms of maximum drawdown, SMHB dropped -90.30% vs VGT's -54.63%.

Which ETF is better, SMHB or VGT?

On 5-year performance, VGT leads with 22.23% vs -6.36% for SMHB. On fees, VGT is cheaper at 0.09% per year. On volatility, VGT has been the lower-risk option at 6.39%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMHB or VGT?

Over the 5-year period, VGT has performed better with a 22.23% return vs -6.36%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMHB or VGT?

VGT is cheaper with a 0.09% expense ratio, compared with 0.85% for SMHB.

Which ETF pays a higher dividend yield, SMHB or VGT?

SMHB has the higher dividend yield at 21.00%, compared with 0.31% for VGT.

What is the main difference between SMHB and VGT?

SMHB is categorized as Leveraged Equities, while VGT is Technology Equities. SMHB tracks Solactive US Small Cap High Dividend Index (200%), while VGT tracks MSCI USA IMI Information Technology 25/50 Index. They also come from different issuers: UBS and Vanguard. Their fees differ too: 0.85% for SMHB and 0.09% for VGT.

Which has better risk-adjusted returns?

VGT currently has the higher Sharpe Ratio (2.95 vs 0.29), 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.