VNQ vs. SMH
VNQ (Vanguard Real Estate ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 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, VNQ returned 5.65%/yr vs 37.49%/yr for SMH. At a 0.44 correlation, their price movements are largely independent. VNQ charges 0.13%/yr vs 0.35%/yr for SMH.
Performance
VNQ vs. SMH - Performance Comparison
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Returns By Period
In the year-to-date period, VNQ achieves a 12.51% return, which is significantly lower than SMH's 72.15% return. Over the past 10 years, VNQ has underperformed SMH with an annualized return of 5.65%, while SMH has yielded a comparatively higher 37.49% annualized return.
VNQ
- 1D
- 0.92%
- 1M
- 3.35%
- YTD
- 12.51%
- 6M
- 12.32%
- 1Y
- 14.02%
- 3Y*
- 10.14%
- 5Y*
- 2.55%
- 10Y*
- 5.65%
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%
VNQ vs. SMH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 12.51% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
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 VNQ and SMH is 0.11, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.11 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.21 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.36 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.33 |
Correlation (All Time) Calculated using the full available price history since Sep 29, 2004 | 0.44 |
Over the past year, the correlation between VNQ and SMH has dropped to 0.11 - well below their long-term average of 0.44, suggesting their price drivers have been diverging.
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Return for Risk
VNQ vs. SMH — Risk / Return Rank
VNQ
SMH
VNQ vs. SMH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) 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.
| VNQ | SMH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -3.17 | ||
| Sortino ratioReturn per unit of downside risk | -2.87 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.60 | -0.43 |
| Calmar ratioReturn relative to maximum drawdown | 1.56 | 9.18 | -7.63 |
| Martin ratioReturn relative to average drawdown | 4.90 | 33.74 | -28.84 |
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Drawdowns
VNQ vs. SMH - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for VNQ and SMH.
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Drawdown Indicators
| VNQ | SMH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.07% | -84.96% | +11.89% |
Max Drawdown (1Y)Largest decline over 1 year | -8.34% | -14.93% | +6.59% |
Max Drawdown (3Y)Largest decline over 3 years | -17.46% | -35.74% | +18.28% |
Max Drawdown (5Y)Largest decline over 5 years | -34.48% | -45.30% | +10.82% |
Max Drawdown (10Y)Largest decline over 10 years | -42.40% | -45.30% | +2.90% |
Current DrawdownCurrent decline from peak | 0.00% | -2.81% | +2.81% |
Average DrawdownAverage peak-to-trough decline | -13.61% | -41.04% | +27.43% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.65% | 4.06% | -1.41% |
Volatility
VNQ vs. SMH - Volatility Comparison
The current volatility for Vanguard Real Estate ETF (VNQ) is 4.72%, while VanEck Semiconductor ETF (SMH) has a volatility of 16.25%. This indicates that VNQ 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
| VNQ | SMH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.72% | 16.25% | -11.53% |
Volatility (6M)Calculated over the trailing 6-month period | 9.77% | 27.73% | -17.96% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.54% | 33.20% | -19.66% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.84% | 35.47% | -16.63% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.72% | 32.82% | -12.10% |
VNQ vs. SMH - Expense Ratio Comparison
VNQ has a 0.13% expense ratio, which is lower than SMH's 0.35% expense ratio.
Dividends
VNQ vs. SMH - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 3.54%, 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% |
VNQ Vanguard Real Estate ETF | 3.54% | 3.92% | 3.85% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% |
Frequently Asked Questions
VNQ and SMH have a correlation of 0.11, 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 VNQ (4.72%). In terms of maximum drawdown, VNQ dropped -73.07% vs SMH's -84.96%.
On 10-year performance, SMH leads with 37.49% vs 5.65% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 4.72%. 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 5.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VNQ is cheaper with a 0.13% expense ratio, compared with 0.35% for SMH.
VNQ has the higher dividend yield at 3.54%, compared with 0.18% for SMH.
VNQ is categorized as REIT, while SMH is Semiconductors. VNQ tracks MSCI US Investable Market Real Estate 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: 0.13% for VNQ and 0.35% for SMH.
SMH currently has the higher Sharpe Ratio (4.13 vs 0.96), 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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