FNGD vs SMH: Correlation
How closely do MicroSectors FANG Index -3X Inverse Leveraged ETNs due (FNGD) and VanEck Semiconductor ETF (SMH) trade together? Their weekly returns over three years give a correlation of -0.78, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FNGD and SMH?
Across a 3-year window, the weekly returns of FNGD and SMH correlate at -0.78, negative, meaning they tend to move in opposite directions. The link has tightened recently: the 1-year correlation (-0.63) runs above the 3-year figure (-0.78). Stretching to 5 years gives -0.79, with an annualized covariance of -1999.9 %².
Among the 1743 assets we track against FNGD, SMH ranks #1720 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SMH outperformed by 148.8 percentage points (-55.7% for FNGD against +93.1% for SMH). One caveat on sizing: FNGD is 2.2 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
FNGD vs SMH: side by side
| FNGD (MicroSectors FANG Index -3X Inverse Leveraged ETNs due) | SMH (VanEck Semiconductor ETF) | |
|---|---|---|
| 1-year return | -55.7% | +93.1% |
| 5-year return | -99.4% | +332.8% |
| Volatility (ann.) | 75.7% | 33.7% |
| Beta vs S&P 500 | -4.54 | 1.91 |
| Max drawdown (3Y) | -97.6% | -35.7% |
| Market cap | – | – |
| P/E (trailing) | 20.6 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | FNGD | SMH |
|---|---|---|
| 2022 | +52.2% | -33.5% |
| 2023 | -90.1% | +73.4% |
| 2024 | -76.6% | +39.1% |
| 2025 | -61.4% | +49.2% |
| 2026 | -49.5% | +59.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FNGD and SMH good diversifiers for each other?
By historical standards, yes. A correlation of -0.78 means the two rarely move for the same reasons.
FAQ
What is the correlation between FNGD and SMH?
As of 2026-08-27, the correlation of weekly returns between FNGD and SMH is -0.78 over 3 years, -0.63 over 1 year and -0.79 over 5 years.
Is SMH a good diversifier for FNGD?
By historical standards, yes. A correlation of -0.78 means the two rarely move for the same reasons.
What does a correlation of -0.78 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/fngd-vs-smh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/fngd-vs-smh/)
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Related comparisons
Hubs: FNGD correlations · SMH correlations
