XLG vs. SMH

Last updated Jun 9, 2026

XLG (Invesco S&P 500 Top 50 ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - XLG is a S&P 500 fund tracking the S&P 500 Top 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, XLG returned 17.03%/yr vs 36.92%/yr for SMH. A 0.74 correlation means they provide meaningful diversification when combined. XLG charges 0.20%/yr vs 0.35%/yr for SMH.

Performance

XLG vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P 500 Top 50 ETF (XLG) 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, XLG achieves a 5.19% return, which is significantly lower than SMH's 66.10% return. Over the past 10 years, XLG has underperformed SMH with an annualized return of 17.03%, while SMH has yielded a comparatively higher 36.92% annualized return.

XLG

• 1D: 0.06%
• 1M: -1.03%
• YTD: 5.19%
• 6M: 4.76%
• 1Y: 25.02%
• 3Y*: 23.53%
• 5Y*: 15.66%
• 10Y*: 17.03%

SMH

• 1D: 5.00%
• 1M: 5.58%
• YTD: 66.10%
• 6M: 62.81%
• 1Y: 137.42%
• 3Y*: 60.43%
• 5Y*: 37.89%
• 10Y*: 36.92%

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

XLG vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLG Invesco S&P 500 Top 50 ETF	5.19%	19.51%	33.49%	38.16%	-24.29%	30.77%	24.15%	32.04%	-3.59%	23.04%
SMH VanEck Semiconductor ETF	66.10%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%

Correlation

The correlation between XLG and SMH is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.70
Correlation (3Y) Calculated over the trailing 3-year period	0.77
Correlation (5Y) Calculated over the trailing 5-year period	0.80
Correlation (10Y) Calculated over the trailing 10-year period	0.77
Correlation (All Time) Calculated using the full available price history since May 10, 2005	0.74

The correlation between XLG and SMH shifts across timeframes, from 0.70 (1 year) to 0.80 (5 years), reflecting how their relationship changes across market environments.

XLG vs. SMH - Sectors Allocation Comparison

Sectors	XLG	SMH
Technology	43.9%	100.0%
Communication Services	17.1%	-
Consumer Cyclical	11.3%	-
Financial Services	9.6%	-
Healthcare	7.0%	-
Consumer Defensive	5.8%	-
Energy	2.7%	-
Industrials	1.9%	-
Basic Materials	0.6%	-
Real Estate	-	-
Utilities	-	-

Return for Risk

XLG vs. SMH — Risk / Return Rank

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

XLG

XLG Risk / Return Rank: 55
XLG Sharpe Ratio Rank: 61
XLG Sortino Ratio Rank: 59
XLG Omega Ratio Rank: 60
XLG Calmar Ratio Rank: 45
XLG Martin Ratio Rank: 49

SMH

SMH Risk / Return Rank: 96
SMH Sharpe Ratio Rank: 97
SMH Sortino Ratio Rank: 93
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.

XLG vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P 500 Top 50 ETF (XLG) 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.

	XLG	SMH	Difference
Sharpe ratio: Return per unit of total volatility	1.86	4.27	-2.42
Sortino ratio: Return per unit of downside risk	2.51	4.33	-1.82
Omega ratio: Gain probability vs. loss probability	1.33	1.62	-0.29
Calmar ratio: Return relative to maximum drawdown	2.02	9.26	-7.23
Martin ratio: Return relative to average drawdown	7.56	34.80	-27.24
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLG vs. SMH - Sharpe Ratio Comparison

The current XLG Sharpe Ratio is 1.86, which is lower than the SMH Sharpe Ratio of 4.27. The chart below compares the historical Sharpe Ratios of XLG 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

	XLG	SMH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.86	4.27	-2.42
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.84	1.08	-0.24
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.91	1.13	-0.23
Sharpe Ratio (All Time) Calculated using the full available price history	0.62	0.33	+0.29

Drawdowns

XLG vs. SMH - Drawdown Comparison

The maximum XLG drawdown since its inception was -52.39%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for XLG and SMH.

Drawdown Indicators

	XLG	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-52.39%	-84.96%	+32.57%
Max Drawdown (1Y) Largest decline over 1 year	-12.41%	-14.93%	+2.52%
Max Drawdown (3Y) Largest decline over 3 years	-20.70%	-35.74%	+15.04%
Max Drawdown (5Y) Largest decline over 5 years	-28.02%	-45.30%	+17.28%
Max Drawdown (10Y) Largest decline over 10 years	-30.46%	-45.30%	+14.84%
Current Drawdown Current decline from peak	-3.62%	-6.23%	+2.61%
Average Drawdown Average peak-to-trough decline	-7.64%	-41.07%	+33.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.32%	3.96%	-0.64%

Volatility

XLG vs. SMH - Volatility Comparison

The current volatility for Invesco S&P 500 Top 50 ETF (XLG) is 4.01%, while VanEck Semiconductor ETF (SMH) has a volatility of 15.45%. This indicates that XLG 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

	XLG	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.01%	15.45%	-11.44%
Volatility (6M) Calculated over the trailing 6-month period	10.19%	26.71%	-16.52%
Volatility (1Y) Calculated over the trailing 1-year period	13.57%	32.42%	-18.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.72%	35.32%	-16.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.87%	32.75%	-13.88%

XLG vs. SMH - Expense Ratio Comparison

XLG has a 0.20% expense ratio, which is lower than SMH's 0.35% expense ratio.

Dividends

XLG vs. SMH - Dividend Comparison

XLG's dividend yield for the trailing twelve months is around 0.61%, 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%
XLG Invesco S&P 500 Top 50 ETF	0.61%	0.64%	0.72%	0.97%	1.34%	0.94%	1.25%	1.58%	2.00%	1.85%	2.00%	2.09%

Frequently Asked Questions

Can I hold both XLG and SMH in my portfolio?

XLG and SMH have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLG or SMH?

SMH has higher volatility (15.45%) compared to XLG (4.01%). In terms of maximum drawdown, XLG dropped -52.39% vs SMH's -84.96%.

Which ETF is better, XLG or SMH?

On 10-year performance, SMH leads with 36.92% vs 17.03% for XLG. On fees, XLG is cheaper at 0.20% per year. On volatility, XLG has been the lower-risk option at 4.01%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLG or SMH?

Over the 10-year period, SMH has performed better with a 36.92% return vs 17.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLG or SMH?

XLG is cheaper with a 0.20% expense ratio, compared with 0.35% for SMH.

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

XLG has the higher dividend yield at 0.61%, compared with 0.18% for SMH.

What is the main difference between XLG and SMH?

XLG is categorized as S&P 500, while SMH is Semiconductors. XLG tracks S&P 500 Top 50 Index, while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: Invesco and VanEck. Their fees differ too: 0.20% for XLG and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (4.27 vs 1.86), 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.