SMH vs VOO: Correlation
Measured on weekly returns over the past three years, VanEck Semiconductor ETF (SMH) and Vanguard S&P 500 ETF (VOO) carry a correlation of 0.82, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SMH and VOO?
On 3 years of weekly data the SMH/VOO correlation comes out at 0.82, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.74 lands near the 3-year figure. The 5-year figure is 0.80, and annualized covariance runs at 396.4 %².
By 3-year correlation, VOO places #13 of the 88 assets tracked against SMH. Their recent paths diverged sharply: over the last 12 months SMH outperformed by 72.5 percentage points (+93.1% for SMH against +20.6% for VOO). The link looks structural: the rolling one-year correlation barely moved, holding between 0.70 and 0.90. Risk is not evenly split, since SMH carries 2.3 times the volatility of the other side.
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 VOO: side by side
| SMH (VanEck Semiconductor ETF) | VOO (Vanguard S&P 500 ETF) | |
|---|---|---|
| 1-year return | +93.1% | +20.6% |
| 5-year return | +332.8% | +83.0% |
| Volatility (ann.) | 33.7% | 14.4% |
| Beta vs S&P 500 | 1.91 | 0.99 |
| Max drawdown (3Y) | -35.7% | -18.7% |
| Dividend yield | – | 1.07% |
| Expense ratio | – | 0.03% |
| Assets under management | – | $1,686.9B |
| Sector / category | ETF · Thematic | ETF · US Large Cap |
VOO, Vanguard's Large Blend fund, carries $1,686.9B under management, 503 holdings, a 0.03% expense ratio, a 1.07% trailing dividend yield.
Year-by-year returns
| Year | SMH | VOO |
|---|---|---|
| 2022 | -33.5% | -18.2% |
| 2023 | +73.4% | +26.3% |
| 2024 | +39.1% | +25.0% |
| 2025 | +49.2% | +17.8% |
| 2026 | +59.1% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SMH and VOO good diversifiers for each other?
No. With a correlation of 0.82, SMH and VOO move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between SMH and VOO?
As of 2026-08-27, the correlation of weekly returns between SMH and VOO is 0.82 over 3 years, 0.74 over 1 year and 0.80 over 5 years.
Is VOO a good diversifier for SMH?
No. With a correlation of 0.82, SMH and VOO move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.82 mean?
On the −1 to +1 scale, 0.82 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 · VOO correlations
