MTUM vs SMH: Correlation
How closely do iShares MSCI USA Momentum Factor ETF (MTUM) and VanEck Semiconductor ETF (SMH) trade together? Their weekly returns over three years give a correlation of 0.89, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MTUM and SMH?
Across a 3-year window, the weekly returns of MTUM and SMH correlate at 0.89, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.92) sits close to the 3-year figure. Stretching to 5 years gives 0.77, with an annualized covariance of 614.1 %².
By 3-year correlation, SMH places #4 of the 109 assets tracked against MTUM. The last year tells two different stories: SMH led by 67.9 percentage points, +25.2% for MTUM against +93.1% for SMH. The relationship is regime-dependent: the rolling one-year correlation swung between 0.32 and 0.93 over the past three years, so this pair behaves very differently depending on the market environment. Note the risk asymmetry: SMH runs 1.6 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.
MTUM vs SMH: side by side
| MTUM (iShares MSCI USA Momentum Factor ETF) | SMH (VanEck Semiconductor ETF) | |
|---|---|---|
| 1-year return | +25.2% | +93.1% |
| 5-year return | +76.1% | +332.8% |
| Volatility (ann.) | 20.6% | 33.7% |
| Beta vs S&P 500 | 1.25 | 1.91 |
| Max drawdown (3Y) | -21.0% | -35.7% |
| Dividend yield | 0.62% | – |
| Expense ratio | 0.15% | – |
| Assets under management | $25.3B | – |
| Sector / category | ETF · US Style | ETF · Thematic |
On the fund side, MTUM sits in the Large Blend category at iShares, with $25.3B under management, 126 holdings, a 0.15% expense ratio, a 0.62% trailing dividend yield.
Year-by-year returns
| Year | MTUM | SMH |
|---|---|---|
| 2022 | -18.3% | -33.5% |
| 2023 | +9.1% | +73.4% |
| 2024 | +32.9% | +39.1% |
| 2025 | +22.1% | +49.2% |
| 2026 | +21.8% | +59.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MTUM and SMH good diversifiers for each other?
No. With a correlation of 0.89, MTUM and SMH move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between MTUM and SMH?
The MTUM/SMH correlation stands at 0.89 on a 3-year window (1 year: 0.92, 5 years: 0.77), computed from weekly returns as of 2026-08-27.
Is SMH a good diversifier for MTUM?
No. With a correlation of 0.89, MTUM and SMH move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.89 mean?
On the −1 to +1 scale, 0.89 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/mtum-vs-smh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mtum-vs-smh/)
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Related comparisons
Hubs: MTUM correlations · SMH correlations
