SMOG vs. ERTH

Last updated Jun 24, 2026

SMOG (VanEck Low Carbon Energy ETF) and ERTH (Invesco MSCI Sustainable Future ETF) are both Alternative Energy Equities funds - SMOG tracks the MVIS Global Low Carbon Energy Index while ERTH tracks the MSCI Global Environment Select Index. Both are passively managed. Over the past 10 years, SMOG returned 12.89%/yr vs 7.36%/yr for ERTH. Their correlation of 0.86 suggests significant overlap in exposure. SMOG charges 0.61%/yr vs 0.55%/yr for ERTH.

Performance

SMOG vs. ERTH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Low Carbon Energy ETF (SMOG) and Invesco MSCI Sustainable Future ETF (ERTH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMOG achieves a 10.83% return, which is significantly higher than ERTH's 0.55% return. Over the past 10 years, SMOG has outperformed ERTH with an annualized return of 12.89%, while ERTH has yielded a comparatively lower 7.36% annualized return.

SMOG

• 1D: -3.46%
• 1M: -5.46%
• YTD: 10.83%
• 6M: 10.00%
• 1Y: 33.70%
• 3Y*: 8.57%
• 5Y*: -0.48%
• 10Y*: 12.89%

ERTH

• 1D: -2.53%
• 1M: -4.42%
• YTD: 0.55%
• 6M: -0.40%
• 1Y: 13.85%
• 3Y*: 1.43%
• 5Y*: -5.81%
• 10Y*: 7.36%

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

SMOG vs. ERTH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SMOG VanEck Low Carbon Energy ETF	10.83%	33.36%	-9.33%	1.42%	-29.92%	-2.75%	118.38%	38.86%	-10.18%	22.69%
ERTH Invesco MSCI Sustainable Future ETF	0.55%	18.47%	-13.56%	0.12%	-27.59%	2.64%	51.02%	36.78%	-12.49%	30.53%

Correlation

The correlation between SMOG and ERTH is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since May 9, 2007	0.86

The correlation between SMOG and ERTH has been stable across timeframes, ranging from 0.86 to 0.95 - a consistent structural relationship.

SMOG vs. ERTH - Sectors Allocation Comparison

Sectors	SMOG	ERTH
Utilities	34.4%	6.9%
Industrials	30.1%	19.2%
Consumer Cyclical	20.6%	14.0%
Technology	7.4%	10.9%
Energy	5.6%	7.1%
Basic Materials	1.3%	5.3%
Financial Services	0.6%	0.3%
Communication Services	-	-
Consumer Defensive	-	1.8%
Healthcare	-	-
Real Estate	-	27.4%

Return for Risk

SMOG vs. ERTH — Risk / Return Rank

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

SMOG

SMOG Risk / Return Rank: 52
SMOG Sharpe Ratio Rank: 47
SMOG Sortino Ratio Rank: 43
SMOG Omega Ratio Rank: 44
SMOG Calmar Ratio Rank: 65
SMOG Martin Ratio Rank: 58

ERTH

ERTH Risk / Return Rank: 27
ERTH Sharpe Ratio Rank: 24
ERTH Sortino Ratio Rank: 23
ERTH Omega Ratio Rank: 22
ERTH Calmar Ratio Rank: 36
ERTH Martin Ratio Rank: 32

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.

SMOG vs. ERTH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Low Carbon Energy ETF (SMOG) and Invesco MSCI Sustainable Future ETF (ERTH). 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.

	SMOG	ERTH	Difference
Sharpe ratio: Return per unit of total volatility	1.56	0.80	+0.76
Sortino ratio: Return per unit of downside risk	2.09	1.20	+0.89
Omega ratio: Gain probability vs. loss probability	1.27	1.15	+0.12
Calmar ratio: Return relative to maximum drawdown	2.99	1.72	+1.27
Martin ratio: Return relative to average drawdown	9.70	4.42	+5.28

SMOG vs. ERTH - Sharpe Ratio Comparison

The current SMOG Sharpe Ratio is 1.56, which is higher than the ERTH Sharpe Ratio of 0.80. The chart below compares the historical Sharpe Ratios of SMOG and ERTH, 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

SMOG vs. ERTH - Drawdown Comparison

The maximum SMOG drawdown since its inception was -84.39%, which is greater than ERTH's maximum drawdown of -64.45%. Use the drawdown chart below to compare losses from any high point for SMOG and ERTH.

Drawdown Indicators

	SMOG	ERTH	Difference
Max Drawdown Largest peak-to-trough decline	-84.39%	-64.45%	-19.94%
Max Drawdown (1Y) Largest decline over 1 year	-11.32%	-8.07%	-3.25%
Max Drawdown (3Y) Largest decline over 3 years	-28.72%	-33.82%	+5.10%
Max Drawdown (5Y) Largest decline over 5 years	-47.86%	-51.72%	+3.86%
Max Drawdown (10Y) Largest decline over 10 years	-51.10%	-51.72%	+0.62%
Current Drawdown Current decline from peak	-19.91%	-32.26%	+12.35%
Average Drawdown Average peak-to-trough decline	-52.37%	-21.49%	-30.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.48%	3.14%	+0.34%

Volatility

SMOG vs. ERTH - Volatility Comparison

VanEck Low Carbon Energy ETF (SMOG) has a higher volatility of 9.15% compared to Invesco MSCI Sustainable Future ETF (ERTH) at 6.57%. This indicates that SMOG's price experiences larger fluctuations and is considered to be riskier than ERTH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMOG	ERTH	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.15%	6.57%	+2.58%
Volatility (6M) Calculated over the trailing 6-month period	17.34%	12.97%	+4.37%
Volatility (1Y) Calculated over the trailing 1-year period	21.70%	17.34%	+4.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.36%	22.96%	+2.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.74%	22.56%	+3.18%

SMOG vs. ERTH - Expense Ratio Comparison

SMOG has a 0.61% expense ratio, which is higher than ERTH's 0.55% expense ratio.

Dividends

SMOG vs. ERTH - Dividend Comparison

SMOG's dividend yield for the trailing twelve months is around 1.42%, less than ERTH's 1.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ERTH Invesco MSCI Sustainable Future ETF	1.93%	1.46%	1.00%	1.28%	1.22%	15.33%	0.21%	0.71%	0.61%	0.87%	1.06%	0.79%
SMOG VanEck Low Carbon Energy ETF	1.42%	1.57%	1.64%	1.58%	1.32%	0.44%	0.06%	0.00%	0.62%	1.25%	2.12%	0.56%

Frequently Asked Questions

Can I hold both SMOG and ERTH in my portfolio?

With a correlation of 0.91, SMOG and ERTH move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, SMOG or ERTH?

SMOG has higher volatility (9.15%) compared to ERTH (6.57%). In terms of maximum drawdown, SMOG dropped -84.39% vs ERTH's -64.45%.

Which ETF is better, SMOG or ERTH?

On 10-year performance, SMOG leads with 12.89% vs 7.36% for ERTH. On fees, ERTH is cheaper at 0.55% per year. On volatility, ERTH has been the lower-risk option at 6.57%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMOG or ERTH?

Over the 10-year period, SMOG has performed better with a 12.89% return vs 7.36%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMOG or ERTH?

ERTH is cheaper with a 0.55% expense ratio, compared with 0.61% for SMOG.

Which ETF pays a higher dividend yield, SMOG or ERTH?

ERTH has the higher dividend yield at 1.93%, compared with 1.42% for SMOG.

What is the main difference between SMOG and ERTH?

SMOG tracks MVIS Global Low Carbon Energy Index, while ERTH tracks MSCI Global Environment Select Index. They also come from different issuers: VanEck and Invesco. Their fees differ too: 0.61% for SMOG and 0.55% for ERTH.

Which has better risk-adjusted returns?

SMOG currently has the higher Sharpe Ratio (1.56 vs 0.80), 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.