SMH vs TXN: Correlation
How closely do VanEck Semiconductor ETF (SMH) and Texas Instruments (TXN) trade together? Their weekly returns over three years give a correlation of 0.63, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SMH and TXN?
On 3 years of weekly data the SMH/TXN correlation comes out at 0.63, strong. The relationship has been stable: the 1-year correlation (0.65) sits close to the 3-year figure. The 5-year figure is 0.68, and annualized covariance runs at 730.5 %².
Among the 88 assets we track against SMH, TXN ranks #56 by 3-year correlation. The last year tells two different stories: SMH led by 60.0 percentage points, +93.1% for SMH against +33.1% for TXN. On a rolling one-year basis the correlation drifted between 0.50 and 0.83, a moderate band.
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 TXN: side by side
| SMH (VanEck Semiconductor ETF) | TXN (Texas Instruments) | |
|---|---|---|
| 1-year return | +93.1% | +33.1% |
| 5-year return | +332.8% | +60.4% |
| Volatility (ann.) | 33.7% | 34.3% |
| Beta vs S&P 500 | 1.91 | 1.28 |
| Max drawdown (3Y) | -35.7% | -33.4% |
| Market cap | – | $243.4B |
| P/E (trailing) | – | 40.6 |
| Dividend yield | – | 2.15% |
| Sector / category | ETF · Thematic | Information Technology |
Year-by-year returns
| Year | SMH | TXN |
|---|---|---|
| 2022 | -33.5% | -9.9% |
| 2023 | +73.4% | +6.4% |
| 2024 | +39.1% | +13.1% |
| 2025 | +49.2% | -4.5% |
| 2026 | +59.1% | +56.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SMH and TXN good diversifiers for each other?
Only partially. A correlation of 0.63 means SMH and TXN 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 TXN?
As of 2026-08-27, the correlation of weekly returns between SMH and TXN is 0.63 over 3 years, 0.65 over 1 year and 0.68 over 5 years.
Is TXN a good diversifier for SMH?
Only partially. A correlation of 0.63 means SMH and TXN share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.63 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.
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Related comparisons
Hubs: SMH correlations · TXN correlations
