VGT vs. SMH

Last updated Jun 13, 2026

VGT (Vanguard Information Technology ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - VGT is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, VGT returned 25.19%/yr vs 37.49%/yr for SMH. Their correlation of 0.85 suggests significant overlap in exposure. VGT charges 0.09%/yr vs 0.35%/yr for SMH.

Performance

VGT vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Information Technology ETF (VGT) 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, VGT achieves a 24.03% return, which is significantly lower than SMH's 72.15% return. Over the past 10 years, VGT has underperformed SMH with an annualized return of 25.19%, while SMH has yielded a comparatively higher 37.49% annualized return.

VGT

• 1D: 0.58%
• 1M: 2.90%
• YTD: 24.03%
• 6M: 24.13%
• 1Y: 47.99%
• 3Y*: 29.84%
• 5Y*: 20.35%
• 10Y*: 25.19%

SMH

• 1D: 1.72%
• 1M: 8.30%
• YTD: 72.15%
• 6M: 75.62%
• 1Y: 136.32%
• 3Y*: 60.05%
• 5Y*: 38.42%
• 10Y*: 37.49%

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

VGT vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGT Vanguard Information Technology ETF	24.03%	21.77%	29.30%	52.66%	-29.70%	30.45%	46.04%	48.62%	2.46%	37.08%
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 VGT and SMH 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	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (10Y) Calculated over the trailing 10-year period	0.88
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004	0.85

The correlation between VGT and SMH has been stable across timeframes, ranging from 0.85 to 0.90 - a consistent structural relationship.

VGT vs. SMH - Sectors Allocation Comparison

Sectors	VGT	SMH
Technology	98.5%	100.0%
Communication Services	0.5%	-
Financial Services	0.5%	-
Industrials	0.4%	-
Energy	0.3%	-
Consumer Cyclical	0.1%	-
Basic Materials	0.0%	-
Healthcare	0.0%	-
Consumer Defensive	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

VGT vs. SMH — Risk / Return Rank

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

VGT

VGT Risk / Return Rank: 70
VGT Sharpe Ratio Rank: 79
VGT Sortino Ratio Rank: 71
VGT Omega Ratio Rank: 72
VGT Calmar Ratio Rank: 67
VGT Martin Ratio Rank: 59

SMH

SMH Risk / Return Rank: 96
SMH Sharpe Ratio Rank: 97
SMH Sortino Ratio Rank: 94
SMH Omega Ratio Rank: 94
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.

VGT vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Information Technology ETF (VGT) 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.

	VGT	SMH	Difference
Sharpe ratio: Return per unit of total volatility	2.19	4.13	-1.94
Sortino ratio: Return per unit of downside risk	2.74	4.26	-1.52
Omega ratio: Gain probability vs. loss probability	1.36	1.60	-0.24
Calmar ratio: Return relative to maximum drawdown	2.94	9.18	-6.24
Martin ratio: Return relative to average drawdown	9.11	33.74	-24.63

VGT vs. SMH - Sharpe Ratio Comparison

The current VGT Sharpe Ratio is 2.19, which is lower than the SMH Sharpe Ratio of 4.13. The chart below compares the historical Sharpe Ratios of VGT 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.

Drawdowns

VGT vs. SMH - Drawdown Comparison

The maximum VGT drawdown since its inception was -54.63%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for VGT and SMH.

Drawdown Indicators

	VGT	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-54.63%	-84.96%	+30.33%
Max Drawdown (1Y) Largest decline over 1 year	-16.40%	-14.93%	-1.47%
Max Drawdown (3Y) Largest decline over 3 years	-27.23%	-35.74%	+8.51%
Max Drawdown (5Y) Largest decline over 5 years	-35.07%	-45.30%	+10.23%
Max Drawdown (10Y) Largest decline over 10 years	-35.07%	-45.30%	+10.23%
Current Drawdown Current decline from peak	-7.18%	-2.81%	-4.37%
Average Drawdown Average peak-to-trough decline	-7.95%	-41.04%	+33.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.28%	4.06%	+1.22%

Volatility

VGT vs. SMH - Volatility Comparison

The current volatility for Vanguard Information Technology ETF (VGT) is 10.00%, while VanEck Semiconductor ETF (SMH) has a volatility of 16.25%. This indicates that VGT 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

	VGT	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.00%	16.25%	-6.25%
Volatility (6M) Calculated over the trailing 6-month period	18.00%	27.73%	-9.73%
Volatility (1Y) Calculated over the trailing 1-year period	22.00%	33.20%	-11.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.40%	35.47%	-10.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.72%	32.82%	-8.10%

VGT vs. SMH - Expense Ratio Comparison

VGT has a 0.09% expense ratio, which is lower than SMH's 0.35% expense ratio.

Dividends

VGT vs. SMH - Dividend Comparison

VGT's dividend yield for the trailing twelve months is around 0.33%, 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%
VGT Vanguard Information Technology ETF	0.33%	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 VGT and SMH in my portfolio?

VGT and SMH 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, VGT or SMH?

SMH has higher volatility (16.25%) compared to VGT (10.00%). In terms of maximum drawdown, VGT dropped -54.63% vs SMH's -84.96%.

Which ETF is better, VGT or SMH?

On 10-year performance, SMH leads with 37.49% vs 25.19% for VGT. On fees, VGT is cheaper at 0.09% per year. On volatility, VGT has been the lower-risk option at 10.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGT or SMH?

Over the 10-year period, SMH has performed better with a 37.49% return vs 25.19%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGT or SMH?

VGT is cheaper with a 0.09% expense ratio, compared with 0.35% for SMH.

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

VGT has the higher dividend yield at 0.33%, compared with 0.18% for SMH.

What is the main difference between VGT and SMH?

VGT is categorized as Technology Equities, while SMH is Semiconductors. VGT tracks MSCI USA IMI Information Technology 25/50 Index, while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: Vanguard and VanEck. Their fees differ too: 0.09% for VGT and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (4.13 vs 2.19), 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.