STWD vs. SMH

Last updated Jun 4, 2026

STWD (Starwood Property Trust, Inc.) is a stock, while SMH (VanEck Semiconductor ETF) is Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Over the past 10 years, STWD returned 7.63%/yr vs 37.68%/yr for SMH. At a 0.36 correlation, their price movements are largely independent.

Performance

STWD vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Starwood Property Trust, Inc. (STWD) and VanEck Semiconductor ETF (SMH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, STWD achieves a -3.33% return, which is significantly lower than SMH's 77.13% return. Over the past 10 years, STWD has underperformed SMH with an annualized return of 7.63%, while SMH has yielded a comparatively higher 37.68% annualized return.

STWD

• 1D: -0.99%
• 1M: -6.00%
• YTD: -3.33%
• 6M: -2.92%
• 1Y: -5.47%
• 3Y*: 7.38%
• 5Y*: 1.13%
• 10Y*: 7.63%

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%

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

STWD vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
STWD Starwood Property Trust, Inc.	-3.33%	4.91%	-0.56%	26.70%	-17.33%	35.88%	-12.01%	36.80%	1.11%	6.08%
SMH VanEck Semiconductor ETF	77.13%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%

Correlation

The correlation between STWD and SMH is 0.14, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.14
Correlation (3Y) Calculated over the trailing 3-year period	0.25
Correlation (5Y) Calculated over the trailing 5-year period	0.39
Correlation (10Y) Calculated over the trailing 10-year period	0.34
Correlation (All Time) Calculated using the full available price history since Aug 13, 2009	0.36

Over the past year, the correlation between STWD and SMH has dropped to 0.14 - well below their long-term average of 0.36, suggesting their price drivers have been diverging.

Return for Risk

STWD vs. SMH — Risk / Return Rank

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

STWD

STWD Risk / Return Rank: 25
STWD Sharpe Ratio Rank: 26
STWD Sortino Ratio Rank: 22
STWD Omega Ratio Rank: 23
STWD Calmar Ratio Rank: 28
STWD Martin Ratio Rank: 28

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

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.

STWD vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Starwood Property Trust, Inc. (STWD) and VanEck Semiconductor ETF (SMH). 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.

	STWD	SMH	Difference
Sharpe ratio: Return per unit of total volatility	-0.33	5.19	-5.52
Sortino ratio: Return per unit of downside risk	-0.34	5.22	-5.56
Omega ratio: Gain probability vs. loss probability	0.96	1.72	-0.76
Calmar ratio: Return relative to maximum drawdown	-0.38	10.59	-10.97
Martin ratio: Return relative to average drawdown	-0.65	40.63	-41.27
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

STWD vs. SMH - Sharpe Ratio Comparison

The current STWD Sharpe Ratio is -0.33, which is lower than the SMH Sharpe Ratio of 5.19. The chart below compares the historical Sharpe Ratios of STWD and SMH, 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

	STWD	SMH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.33	5.19	-5.52
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.05	1.13	-1.08
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.25	1.16	-0.91
Sharpe Ratio (All Time) Calculated using the full available price history	0.35	0.34	+0.01

Drawdowns

STWD vs. SMH - Drawdown Comparison

The maximum STWD drawdown since its inception was -66.34%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for STWD and SMH.

Drawdown Indicators

	STWD	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-66.34%	-84.96%	+18.62%
Max Drawdown (1Y) Largest decline over 1 year	-14.53%	-14.93%	+0.40%
Max Drawdown (3Y) Largest decline over 3 years	-16.66%	-35.74%	+19.08%
Max Drawdown (5Y) Largest decline over 5 years	-29.65%	-45.30%	+15.65%
Max Drawdown (10Y) Largest decline over 10 years	-66.34%	-45.30%	-21.04%
Current Drawdown Current decline from peak	-12.67%	0.00%	-12.67%
Average Drawdown Average peak-to-trough decline	-7.57%	-41.09%	+33.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.47%	3.89%	+4.58%

Volatility

STWD vs. SMH - Volatility Comparison

The current volatility for Starwood Property Trust, Inc. (STWD) is 5.59%, while VanEck Semiconductor ETF (SMH) has a volatility of 11.47%. This indicates that STWD experiences smaller price fluctuations and is considered to be less risky than SMH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	STWD	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.59%	11.47%	-5.88%
Volatility (6M) Calculated over the trailing 6-month period	12.21%	24.29%	-12.08%
Volatility (1Y) Calculated over the trailing 1-year period	16.67%	30.56%	-13.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.29%	35.01%	-10.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	30.13%	32.57%	-2.44%

Dividends

STWD vs. SMH - Dividend Comparison

STWD's dividend yield for the trailing twelve months is around 11.34%, more than SMH's 0.17% 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%
STWD Starwood Property Trust, Inc.	11.34%	10.66%	10.13%	9.13%	10.47%	7.90%	9.95%	7.72%	9.74%	8.99%	8.75%	9.34%

Frequently Asked Questions

Can I hold both STWD and SMH in my portfolio?

STWD and SMH have a correlation of 0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, STWD or SMH?

SMH has higher volatility (11.47%) compared to STWD (5.59%). In terms of maximum drawdown, STWD dropped -66.34% vs SMH's -84.96%.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (5.19 vs -0.33), 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.