TIP vs. SMH
TIP (iShares TIPS Bond ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - TIP is a Inflation-Protected Bonds fund tracking the ICE U.S. Treasury Inflation Linked Bond Index, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, TIP returned 2.53%/yr vs 37.49%/yr for SMH. At a correlation of -0.10, they often move in opposite directions. TIP charges 0.18%/yr vs 0.35%/yr for SMH.
Performance
TIP vs. SMH - Performance Comparison
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Returns By Period
In the year-to-date period, TIP achieves a 1.40% return, which is significantly lower than SMH's 72.15% return. Over the past 10 years, TIP has underperformed SMH with an annualized return of 2.53%, while SMH has yielded a comparatively higher 37.49% annualized return.
TIP
- 1D
- 0.01%
- 1M
- -0.11%
- YTD
- 1.40%
- 6M
- 1.42%
- 1Y
- 4.76%
- 3Y*
- 4.00%
- 5Y*
- 0.91%
- 10Y*
- 2.53%
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%
TIP vs. SMH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TIP iShares TIPS Bond ETF | 1.40% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 2.92% |
SMH VanEck Semiconductor ETF | 72.15% | 49.17% | 39.10% | 73.38% | -33.53% | 42.13% | 55.53% | 64.45% | -9.05% | 38.48% |
Correlation
The correlation between TIP and SMH is 0.08, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.08 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.08 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.10 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.02 |
Correlation (All Time) Calculated using the full available price history since Dec 5, 2003 | -0.10 |
The correlation between TIP and SMH shifts across timeframes, from -0.10 (all time) to 0.10 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
TIP vs. SMH — Risk / Return Rank
TIP
SMH
TIP vs. SMH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares TIPS Bond ETF (TIP) 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.
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.
| TIP | SMH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.76 | ||
| Sortino ratioReturn per unit of downside risk | -2.15 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.60 | -0.36 |
| Calmar ratioReturn relative to maximum drawdown | 2.34 | 9.18 | -6.84 |
| Martin ratioReturn relative to average drawdown | 7.00 | 33.74 | -26.74 |
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Drawdowns
TIP vs. SMH - Drawdown Comparison
The maximum TIP drawdown since its inception was -14.57%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for TIP and SMH.
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Drawdown Indicators
| TIP | SMH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.57% | -84.96% | +70.39% |
Max Drawdown (1Y)Largest decline over 1 year | -1.98% | -14.93% | +12.95% |
Max Drawdown (3Y)Largest decline over 3 years | -4.54% | -35.74% | +31.20% |
Max Drawdown (5Y)Largest decline over 5 years | -14.51% | -45.30% | +30.79% |
Max Drawdown (10Y)Largest decline over 10 years | -14.51% | -45.30% | +30.79% |
Current DrawdownCurrent decline from peak | -0.46% | -2.81% | +2.35% |
Average DrawdownAverage peak-to-trough decline | -3.43% | -41.04% | +37.61% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.66% | 4.06% | -3.40% |
Volatility
TIP vs. SMH - Volatility Comparison
The current volatility for iShares TIPS Bond ETF (TIP) is 1.03%, while VanEck Semiconductor ETF (SMH) has a volatility of 16.25%. This indicates that TIP 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.
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Volatility by Period
| TIP | SMH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.03% | 16.25% | -15.22% |
Volatility (6M)Calculated over the trailing 6-month period | 2.32% | 27.73% | -25.41% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.39% | 33.20% | -29.81% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.21% | 35.47% | -29.26% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.74% | 32.82% | -27.08% |
TIP vs. SMH - Expense Ratio Comparison
TIP has a 0.18% expense ratio, which is lower than SMH's 0.35% expense ratio.
Dividends
TIP vs. SMH - Dividend Comparison
TIP's dividend yield for the trailing twelve months is around 3.76%, more than SMH's 0.18% 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% |
TIP iShares TIPS Bond ETF | 3.76% | 3.46% | 2.52% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% |
Frequently Asked Questions
TIP and SMH have a correlation of 0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SMH has higher volatility (16.25%) compared to TIP (1.03%). In terms of maximum drawdown, TIP dropped -14.57% vs SMH's -84.96%.
On 10-year performance, SMH leads with 37.49% vs 2.53% for TIP. On fees, TIP is cheaper at 0.18% per year. On volatility, TIP has been the lower-risk option at 1.03%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SMH has performed better with a 37.49% return vs 2.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TIP is cheaper with a 0.18% expense ratio, compared with 0.35% for SMH.
TIP has the higher dividend yield at 3.76%, compared with 0.18% for SMH.
TIP is categorized as Inflation-Protected Bonds, while SMH is Semiconductors. TIP tracks ICE U.S. Treasury Inflation Linked Bond Index, while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: iShares and VanEck. Their fees differ too: 0.18% for TIP and 0.35% for SMH.
SMH currently has the higher Sharpe Ratio (4.13 vs 1.37), 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.
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