ARKK vs SMH: Correlation
Measured on weekly returns over the past three years, ARK Innovation ETF (ARKK) and VanEck Semiconductor ETF (SMH) carry a correlation of 0.64, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARKK and SMH?
Across a 3-year window, the weekly returns of ARKK and SMH correlate at 0.64, strong. The relationship has been stable: the 1-year correlation (0.54) sits close to the 3-year figure. Stretching to 5 years gives 0.67, with an annualized covariance of 835.6 %².
By 3-year correlation, SMH places #22 of the 122 assets tracked against ARKK. Their recent paths diverged sharply: over the last 12 months SMH outperformed by 77.4 percentage points (+15.7% for ARKK against +93.1% for SMH). Across three years, the rolling one-year figure varied moderately, from 0.54 to 0.81.
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.
ARKK vs SMH: side by side
| ARKK (ARK Innovation ETF) | SMH (VanEck Semiconductor ETF) | |
|---|---|---|
| 1-year return | +15.7% | +93.1% |
| 5-year return | -27.7% | +332.8% |
| Volatility (ann.) | 38.8% | 33.7% |
| Beta vs S&P 500 | 2.07 | 1.91 |
| Max drawdown (3Y) | -39.6% | -35.7% |
| Sector / category | ETF · Thematic | ETF · Thematic |
Year-by-year returns
| Year | ARKK | SMH |
|---|---|---|
| 2022 | -67.0% | -33.5% |
| 2023 | +69.0% | +73.4% |
| 2024 | +8.4% | +39.1% |
| 2025 | +35.5% | +49.2% |
| 2026 | +13.6% | +59.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARKK and SMH good diversifiers for each other?
To a limited degree. At 0.64 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between ARKK and SMH?
The ARKK/SMH correlation stands at 0.64 on a 3-year window (1 year: 0.54, 5 years: 0.67), computed from weekly returns as of 2026-08-27.
Is SMH a good diversifier for ARKK?
To a limited degree. At 0.64 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.64 mean?
On the −1 to +1 scale, 0.64 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/arkk-vs-smh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/arkk-vs-smh/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ARKK correlations · SMH correlations
