AVGO vs SMH: Correlation
How closely do Broadcom (AVGO) and VanEck Semiconductor ETF (SMH) trade together? Their weekly returns over three years give a correlation of 0.75, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AVGO and SMH?
Over the past 3 years, AVGO and SMH moved with a correlation of 0.75, which is strong. Lately the two have drifted apart, with the 1-year correlation at 0.64 versus 0.75 over 3 years. Over 5 years the correlation is 0.75, and the annualized covariance of weekly returns is 1298.0 %².
By 3-year correlation, SMH places #5 of the 33 assets tracked against AVGO. The last year tells two different stories: SMH led by 68.4 percentage points, +24.7% for AVGO against +93.1% for SMH. Across three years, the rolling one-year figure varied moderately, from 0.59 to 0.85. Note the risk asymmetry: AVGO runs 1.5 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
AVGO vs SMH: side by side
| AVGO (Broadcom) | SMH (VanEck Semiconductor ETF) | |
|---|---|---|
| 1-year return | +24.7% | +93.1% |
| 5-year return | +718.0% | +332.8% |
| Volatility (ann.) | 51.3% | 33.7% |
| Beta vs S&P 500 | 2.45 | 1.91 |
| Max drawdown (3Y) | -41.1% | -35.7% |
| Market cap | $1,767.6B | – |
| P/E (trailing) | 59.2 | – |
| Dividend yield | 0.71% | – |
| Sector / category | Information Technology | ETF · Thematic |
Year-by-year returns
| Year | AVGO | SMH |
|---|---|---|
| 2022 | -13.3% | -33.5% |
| 2023 | +104.2% | +73.4% |
| 2024 | +110.5% | +39.1% |
| 2025 | +50.6% | +49.2% |
| 2026 | +7.7% | +59.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AVGO and SMH good diversifiers for each other?
Somewhat, no more. With 0.75 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between AVGO and SMH?
As of 2026-08-27, the correlation of weekly returns between AVGO and SMH is 0.75 over 3 years, 0.64 over 1 year and 0.75 over 5 years.
Is SMH a good diversifier for AVGO?
Somewhat, no more. With 0.75 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.75 mean?
On the −1 to +1 scale, 0.75 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/avgo-vs-smh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/avgo-vs-smh/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: AVGO correlations · SMH correlations
