SMH vs TWN: Correlation
How closely do VanEck Semiconductor ETF (SMH) and Taiwan Fund, Inc. (The) (TWN) trade together? Their weekly returns over three years give a correlation of 0.72, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SMH and TWN?
Over the past 3 years, SMH and TWN moved with a correlation of 0.72, which is strong. Little has changed lately, as the 1-year reading of 0.72 lands near the 3-year figure. Over 5 years the correlation is 0.71, and the annualized covariance of weekly returns is 701.3 %².
Among the 88 assets we track against SMH, TWN ranks #28 by 3-year correlation. Correlation aside, the last 12 months split them widely, with TWN ahead by 34.7 points (+93.1% versus +127.8%).
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 TWN: side by side
| SMH (VanEck Semiconductor ETF) | TWN (Taiwan Fund, Inc. (The)) | |
|---|---|---|
| 1-year return | +93.1% | +127.8% |
| 5-year return | +332.8% | +320.4% |
| Volatility (ann.) | 33.7% | 28.9% |
| Beta vs S&P 500 | 1.91 | 1.26 |
| Max drawdown (3Y) | -35.7% | -30.0% |
| Market cap | – | $0.6B |
| P/E (trailing) | – | 2.6 |
| Dividend yield | – | 6.18% |
| Sector / category | ETF · Thematic | US Listed |
Year-by-year returns
| Year | SMH | TWN |
|---|---|---|
| 2022 | -33.5% | -38.5% |
| 2023 | +73.4% | +51.7% |
| 2024 | +39.1% | +32.8% |
| 2025 | +49.2% | +54.1% |
| 2026 | +59.1% | +92.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SMH and TWN good diversifiers for each other?
Only partially. A correlation of 0.72 means SMH and TWN share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between SMH and TWN?
The SMH/TWN correlation stands at 0.72 on a 3-year window (1 year: 0.72, 5 years: 0.71), computed from weekly returns as of 2026-08-27.
Is TWN a good diversifier for SMH?
Only partially. A correlation of 0.72 means SMH and TWN share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.72 mean?
On the −1 to +1 scale, 0.72 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
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Related comparisons
Hubs: SMH correlations · TWN correlations
