SMH vs SNPS: Correlation
VanEck Semiconductor ETF (SMH) and Synopsys (SNPS) show a moderate relationship: their 3-year correlation of weekly returns is 0.57.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SMH and SNPS?
Across a 3-year window, the weekly returns of SMH and SNPS correlate at 0.57, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.37 versus 0.57 over 3 years. Stretching to 5 years gives 0.64, with an annualized covariance of 811.0 %².
Within SMH's tracked universe of 88 assets, SNPS comes in at #66 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SMH outperformed by 116.0 percentage points (+93.1% for SMH against -22.9% for SNPS). The relationship is regime-dependent: the rolling one-year correlation swung between 0.30 and 0.87 over the past three years, so this pair behaves very differently depending on the market environment.
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.
SMH vs SNPS: side by side
| SMH (VanEck Semiconductor ETF) | SNPS (Synopsys) | |
|---|---|---|
| 1-year return | +93.1% | -22.9% |
| 5-year return | +332.8% | +39.1% |
| Volatility (ann.) | 33.7% | 42.2% |
| Beta vs S&P 500 | 1.91 | 1.57 |
| Max drawdown (3Y) | -35.7% | -42.3% |
| Market cap | – | $89.1B |
| P/E (trailing) | – | 71.4 |
| Dividend yield | – | 0.00% |
| Sector / category | ETF · Thematic | Information Technology |
Year-by-year returns
| Year | SMH | SNPS |
|---|---|---|
| 2022 | -33.5% | -13.4% |
| 2023 | +73.4% | +61.3% |
| 2024 | +39.1% | -5.7% |
| 2025 | +49.2% | -3.2% |
| 2026 | +59.1% | -1.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SMH and SNPS good diversifiers for each other?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SMH and SNPS?
As of 2026-08-27, the correlation of weekly returns between SMH and SNPS is 0.57 over 3 years, 0.37 over 1 year and 0.64 over 5 years.
Is SNPS a good diversifier for SMH?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.57 mean?
On the −1 to +1 scale, 0.57 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.
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Related comparisons
Hubs: SMH correlations · SNPS correlations
