SMH vs VTI: Correlation
VanEck Semiconductor ETF (SMH) and Vanguard Total Stock Market ETF (VTI) show a very strong relationship: their 3-year correlation of weekly returns is 0.81.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SMH and VTI?
Over the past 3 years, SMH and VTI moved with a correlation of 0.81, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.75 over 1 year against 0.81 over 3. Over 5 years the correlation is 0.80, and the annualized covariance of weekly returns is 399.0 %².
By 3-year correlation, VTI places #18 of the 88 assets tracked against SMH. Correlation aside, the last 12 months split them widely, with SMH ahead by 72.4 points (+93.1% versus +20.7%). Stability stands out here, with the rolling one-year correlation confined to 0.69 through 0.90. One caveat on sizing: SMH is 2.3 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 VTI: side by side
| SMH (VanEck Semiconductor ETF) | VTI (Vanguard Total Stock Market ETF) | |
|---|---|---|
| 1-year return | +93.1% | +20.7% |
| 5-year return | +332.8% | +74.8% |
| Volatility (ann.) | 33.7% | 14.6% |
| Beta vs S&P 500 | 1.91 | 1.01 |
| Max drawdown (3Y) | -35.7% | -19.3% |
| Dividend yield | – | 1.06% |
| Expense ratio | – | 0.03% |
| Assets under management | – | $2,290.0B |
| Sector / category | ETF · Thematic | ETF · US Large Cap |
VTI, Vanguard's Large Blend fund, carries $2,290.0B under management, 3140 holdings, a 0.03% expense ratio, a 1.06% trailing dividend yield.
Year-by-year returns
| Year | SMH | VTI |
|---|---|---|
| 2022 | -33.5% | -19.5% |
| 2023 | +73.4% | +26.0% |
| 2024 | +39.1% | +23.8% |
| 2025 | +49.2% | +17.1% |
| 2026 | +59.1% | +14.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SMH and VTI good diversifiers for each other?
No: a correlation of 0.81 means SMH and VTI tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between SMH and VTI?
Using weekly returns as of 2026-08-27: 0.81 over 3 years, with 0.75 over the last year and 0.80 over 5 years.
Is VTI a good diversifier for SMH?
No: a correlation of 0.81 means SMH and VTI tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.81 mean?
A reading of 0.81 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-vti.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/smh-vs-vti/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: SMH correlations · VTI correlations
