SMH vs TAN: Correlation
VanEck Semiconductor ETF (SMH) and Invesco Solar ETF (TAN) show a moderate relationship: their 3-year correlation of weekly returns is 0.44.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SMH and TAN?
Across a 3-year window, the weekly returns of SMH and TAN correlate at 0.44, moderate. Recent behaviour matches the longer record: 0.47 over 1 year against 0.44 over 3. Stretching to 5 years gives 0.45, with an annualized covariance of 550.6 %².
Among the 88 assets we track against SMH, TAN ranks #75 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SMH outperformed by 71.7 percentage points (+93.1% for SMH against +21.4% for TAN). Stability stands out here, with the rolling one-year correlation confined to 0.34 through 0.59.
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 TAN: side by side
| SMH (VanEck Semiconductor ETF) | TAN (Invesco Solar ETF) | |
|---|---|---|
| 1-year return | +93.1% | +21.4% |
| 5-year return | +332.8% | -41.9% |
| Volatility (ann.) | 33.7% | 37.4% |
| Beta vs S&P 500 | 1.91 | 1.04 |
| Max drawdown (3Y) | -35.7% | -55.4% |
| Sector / category | ETF · Thematic | ETF · Thematic |
Year-by-year returns
| Year | SMH | TAN |
|---|---|---|
| 2022 | -33.5% | -5.2% |
| 2023 | +73.4% | -26.8% |
| 2024 | +39.1% | -37.6% |
| 2025 | +49.2% | +48.3% |
| 2026 | +59.1% | +1.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SMH and TAN good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.44 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between SMH and TAN?
The SMH/TAN correlation stands at 0.44 on a 3-year window (1 year: 0.47, 5 years: 0.45), computed from weekly returns as of 2026-08-27.
Is TAN a good diversifier for SMH?
Yes, to a useful degree: a correlation of 0.44 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.44 mean?
On the −1 to +1 scale, 0.44 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/smh-vs-tan.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/smh-vs-tan/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: SMH correlations · TAN correlations
