ACWI vs SMH: Correlation
How closely do iShares MSCI ACWI ETF (ACWI) and VanEck Semiconductor ETF (SMH) trade together? Their weekly returns over three years give a correlation of 0.81, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and SMH?
Across a 3-year window, the weekly returns of ACWI and SMH correlate at 0.81, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.78 lands near the 3-year figure. Stretching to 5 years gives 0.80, with an annualized covariance of 376.1 %².
Among the 119 assets we track against ACWI, SMH ranks #45 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SMH outperformed by 70.4 percentage points (+22.7% for ACWI against +93.1% for SMH). Across three years, the rolling one-year figure varied moderately, from 0.64 to 0.89. Risk is not evenly split, since SMH carries 2.4 times the volatility of the other side.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ACWI vs SMH: side by side
| ACWI (iShares MSCI ACWI ETF) | SMH (VanEck Semiconductor ETF) | |
|---|---|---|
| 1-year return | +22.7% | +93.1% |
| 5-year return | +69.0% | +332.8% |
| Volatility (ann.) | 13.8% | 33.7% |
| Beta vs S&P 500 | 0.92 | 1.91 |
| Max drawdown (3Y) | -16.5% | -35.7% |
| Dividend yield | 1.44% | – |
| Expense ratio | 0.32% | – |
| Assets under management | $32.5B | – |
| Sector / category | ETF · Global | ETF · Thematic |
ACWI, iShares's Global Large-Stock Blend fund, carries $32.5B under management, 1590 holdings, a 0.32% expense ratio, a 1.44% trailing dividend yield.
Year-by-year returns
| Year | ACWI | SMH |
|---|---|---|
| 2022 | -18.4% | -33.5% |
| 2023 | +22.3% | +73.4% |
| 2024 | +17.4% | +39.1% |
| 2025 | +22.4% | +49.2% |
| 2026 | +14.9% | +59.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and SMH good diversifiers for each other?
No. With a correlation of 0.81, ACWI and SMH move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between ACWI and SMH?
Using weekly returns as of 2026-08-27: 0.81 over 3 years, with 0.78 over the last year and 0.80 over 5 years.
Is SMH a good diversifier for ACWI?
No. With a correlation of 0.81, ACWI and SMH move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.81 mean?
On the −1 to +1 scale, 0.81 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/acwi-vs-smh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/acwi-vs-smh/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ACWI correlations · SMH correlations
