SMH vs VUG: Correlation
Measured on weekly returns over the past three years, VanEck Semiconductor ETF (SMH) and Vanguard Growth ETF (VUG) carry a correlation of 0.83, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SMH and VUG?
Over the past 3 years, SMH and VUG moved with a correlation of 0.83, which is very strong, meaning they move nearly in lockstep. Lately the two have drifted apart, with the 1-year correlation at 0.69 versus 0.83 over 3 years. Over 5 years the correlation is 0.83, and the annualized covariance of weekly returns is 541.4 %².
By 3-year correlation, VUG places #8 of the 88 assets tracked against SMH. Correlation aside, the last 12 months split them widely, with SMH ahead by 76.9 points (+93.1% versus +16.2%). The rolling one-year correlation stayed in a tight band between 0.68 and 0.92 over the past three years, which points to a structural rather than episodic relationship. Risk is not evenly split, since SMH carries 1.7 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 VUG: side by side
| SMH (VanEck Semiconductor ETF) | VUG (Vanguard Growth ETF) | |
|---|---|---|
| 1-year return | +93.1% | +16.2% |
| 5-year return | +332.8% | +78.4% |
| Volatility (ann.) | 33.7% | 19.4% |
| Beta vs S&P 500 | 1.91 | 1.28 |
| Max drawdown (3Y) | -35.7% | -22.8% |
| Dividend yield | – | 0.40% |
| Expense ratio | – | 0.03% |
| Assets under management | – | $372.0B |
| Sector / category | ETF · Thematic | ETF · US Style |
VUG, Vanguard's Large Growth fund, carries $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% trailing dividend yield.
Year-by-year returns
| Year | SMH | VUG |
|---|---|---|
| 2022 | -33.5% | -33.2% |
| 2023 | +73.4% | +46.8% |
| 2024 | +39.1% | +32.7% |
| 2025 | +49.2% | +19.4% |
| 2026 | +59.1% | +9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SMH and VUG good diversifiers for each other?
No. With a correlation of 0.83, SMH and VUG move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between SMH and VUG?
Using weekly returns as of 2026-08-27: 0.83 over 3 years, with 0.69 over the last year and 0.83 over 5 years.
Is VUG a good diversifier for SMH?
No. With a correlation of 0.83, SMH and VUG move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.83 mean?
On the −1 to +1 scale, 0.83 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
$ curl https://www.pairbook.io/api/v1/pairs/smh-vs-vug.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/smh-vs-vug/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SMH correlations · VUG correlations
