SMH vs VRT: Correlation
Measured on weekly returns over the past three years, VanEck Semiconductor ETF (SMH) and Vertiv (VRT) carry a correlation of 0.68, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SMH and VRT?
Across a 3-year window, the weekly returns of SMH and VRT correlate at 0.68, strong. The link has loosened recently: the 1-year correlation (0.58) runs below the 3-year figure (0.68). Stretching to 5 years gives 0.59, with an annualized covariance of 1301.1 %².
Among the 88 assets we track against SMH, VRT ranks #40 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months VRT outperformed by 15.4 percentage points (+93.1% for SMH against +108.5% for VRT). On a rolling one-year basis the correlation drifted between 0.31 and 0.77, a moderate band. One caveat on sizing: VRT is 1.7 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 VRT: side by side
| SMH (VanEck Semiconductor ETF) | VRT (Vertiv) | |
|---|---|---|
| 1-year return | +93.1% | +108.5% |
| 5-year return | +332.8% | +847.7% |
| Volatility (ann.) | 33.7% | 57.1% |
| Beta vs S&P 500 | 1.91 | 2.36 |
| Max drawdown (3Y) | -35.7% | -61.3% |
| Market cap | – | $103.7B |
| P/E (trailing) | – | 59.6 |
| Dividend yield | – | 0.07% |
| Sector / category | ETF · Thematic | Industrials |
Year-by-year returns
| Year | SMH | VRT |
|---|---|---|
| 2022 | -33.5% | -45.3% |
| 2023 | +73.4% | +251.8% |
| 2024 | +39.1% | +136.8% |
| 2025 | +49.2% | +42.8% |
| 2026 | +59.1% | +66.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SMH and VRT good diversifiers for each other?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SMH and VRT?
As of 2026-08-27, the correlation of weekly returns between SMH and VRT is 0.68 over 3 years, 0.58 over 1 year and 0.59 over 5 years.
Is VRT a good diversifier for SMH?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.68 mean?
A reading of 0.68 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/smh-vs-vrt.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/smh-vs-vrt/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SMH correlations · VRT correlations
