XTL vs. SMH

Last updated Jun 23, 2026

XTL (SPDR S&P Telecom ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - XTL is a Communications Equities fund tracking the S&P Telecom Select Industry Index, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, XTL returned 15.90%/yr vs 38.85%/yr for SMH. A 0.63 correlation means they provide meaningful diversification when combined. Both charge a 0.35% expense ratio.

Performance

XTL vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Telecom ETF (XTL) 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, XTL achieves a 45.48% return, which is significantly lower than SMH's 85.74% return. Over the past 10 years, XTL has underperformed SMH with an annualized return of 15.90%, while SMH has yielded a comparatively higher 38.85% annualized return.

XTL

• 1D: 0.71%
• 1M: -5.01%
• YTD: 45.48%
• 6M: 42.07%
• 1Y: 105.42%
• 3Y*: 46.16%
• 5Y*: 17.85%
• 10Y*: 15.90%

SMH

• 1D: 1.37%
• 1M: 16.07%
• YTD: 85.74%
• 6M: 85.96%
• 1Y: 157.81%
• 3Y*: 66.26%
• 5Y*: 40.65%
• 10Y*: 38.85%

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

XTL vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XTL SPDR S&P Telecom ETF	45.48%	44.95%	34.89%	-1.17%	-19.18%	21.58%	22.46%	12.51%	-6.60%	0.56%
SMH VanEck Semiconductor ETF	85.74%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%

Correlation

The correlation between XTL and SMH is 0.62, 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	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (10Y) Calculated over the trailing 10-year period	0.63
Correlation (All Time) Calculated using the full available price history since Jan 27, 2011	0.63

The correlation between XTL and SMH has been stable across timeframes, ranging from 0.53 to 0.63 - a consistent structural relationship.

XTL vs. SMH - Sectors Allocation Comparison

Sectors	XTL	SMH
Technology	62.7%	100.0%
Communication Services	35.0%	-
Real Estate	2.3%	-
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	-
Utilities	-	-

Return for Risk

XTL vs. SMH — Risk / Return Rank

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

XTL

XTL Risk / Return Rank: 92
XTL Sharpe Ratio Rank: 95
XTL Sortino Ratio Rank: 90
XTL Omega Ratio Rank: 87
XTL Calmar Ratio Rank: 95
XTL Martin Ratio Rank: 95

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: 97

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.

XTL vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Telecom ETF (XTL) 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.

	XTL	SMH	Difference
Sharpe ratio: Return per unit of total volatility	3.51	4.66	-1.15
Sortino ratio: Return per unit of downside risk	3.96	4.60	-0.64
Omega ratio: Gain probability vs. loss probability	1.52	1.66	-0.14
Calmar ratio: Return relative to maximum drawdown	7.21	10.63	-3.42
Martin ratio: Return relative to average drawdown	28.34	38.91	-10.57

XTL vs. SMH - Sharpe Ratio Comparison

The current XTL Sharpe Ratio is 3.51, which is comparable to the SMH Sharpe Ratio of 4.66. The chart below compares the historical Sharpe Ratios of XTL 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

XTL vs. SMH - Drawdown Comparison

The maximum XTL drawdown since its inception was -37.01%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for XTL and SMH.

Drawdown Indicators

	XTL	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-37.01%	-84.96%	+47.95%
Max Drawdown (1Y) Largest decline over 1 year	-14.70%	-14.93%	+0.23%
Max Drawdown (3Y) Largest decline over 3 years	-22.79%	-35.74%	+12.95%
Max Drawdown (5Y) Largest decline over 5 years	-37.01%	-45.30%	+8.29%
Max Drawdown (10Y) Largest decline over 10 years	-37.01%	-45.30%	+8.29%
Current Drawdown Current decline from peak	-10.30%	0.00%	-10.30%
Average Drawdown Average peak-to-trough decline	-9.76%	-41.01%	+31.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.73%	4.07%	-0.34%

Volatility

XTL vs. SMH - Volatility Comparison

The current volatility for SPDR S&P Telecom ETF (XTL) is 11.45%, while VanEck Semiconductor ETF (SMH) has a volatility of 17.29%. This indicates that XTL 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

	XTL	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.45%	17.29%	-5.84%
Volatility (6M) Calculated over the trailing 6-month period	23.63%	28.18%	-4.55%
Volatility (1Y) Calculated over the trailing 1-year period	30.23%	34.14%	-3.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.37%	35.68%	-10.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.69%	32.95%	-9.26%

XTL vs. SMH - Expense Ratio Comparison

Both XTL and SMH have an expense ratio of 0.35%.

Dividends

XTL vs. SMH - Dividend Comparison

XTL's dividend yield for the trailing twelve months is around 1.29%, 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%
XTL SPDR S&P Telecom ETF	1.29%	1.05%	0.62%	0.80%	0.74%	1.25%	0.88%	0.92%	1.90%	2.08%	1.11%	1.38%

Frequently Asked Questions

Can I hold both XTL and SMH in my portfolio?

XTL and SMH have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XTL or SMH?

SMH has higher volatility (17.29%) compared to XTL (11.45%). In terms of maximum drawdown, XTL dropped -37.01% vs SMH's -84.96%.

Which ETF is better, XTL or SMH?

On 10-year performance, SMH leads with 38.85% vs 15.90% for XTL. Both ETFs have the same 0.35% expense ratio. On volatility, XTL has been the lower-risk option at 11.45%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XTL or SMH?

Over the 10-year period, SMH has performed better with a 38.85% return vs 15.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XTL or SMH?

XTL and SMH have the same expense ratio: 0.35% per year.

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

XTL has the higher dividend yield at 1.29%, compared with 0.17% for SMH.

What is the main difference between XTL and SMH?

XTL is categorized as Communications Equities, while SMH is Semiconductors. XTL tracks S&P Telecom Select Industry Index, while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: State Street and VanEck.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (4.66 vs 3.51), 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.