SMH vs WDC: Correlation
Measured on weekly returns over the past three years, VanEck Semiconductor ETF (SMH) and Western Digital (WDC) carry a correlation of 0.66, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SMH and WDC?
Across a 3-year window, the weekly returns of SMH and WDC correlate at 0.66, strong. Recent behaviour matches the longer record: 0.61 over 1 year against 0.66 over 3. Stretching to 5 years gives 0.66, with an annualized covariance of 1290.4 %².
Within SMH's tracked universe of 88 assets, WDC comes in at #48 by 3-year correlation. Correlation aside, the last 12 months split them widely, with WDC ahead by 381.2 points (+93.1% versus +474.3%). The link looks structural: the rolling one-year correlation barely moved, holding between 0.61 and 0.81. One caveat on sizing: WDC 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 WDC: side by side
| SMH (VanEck Semiconductor ETF) | WDC (Western Digital) | |
|---|---|---|
| 1-year return | +93.1% | +474.3% |
| 5-year return | +332.8% | +889.2% |
| Volatility (ann.) | 33.7% | 58.0% |
| Beta vs S&P 500 | 1.91 | 2.15 |
| Max drawdown (3Y) | -35.7% | -49.6% |
| Market cap | – | $166.6B |
| P/E (trailing) | – | 17.4 |
| Dividend yield | – | 0.11% |
| Sector / category | ETF · Thematic | Information Technology |
Year-by-year returns
| Year | SMH | WDC |
|---|---|---|
| 2022 | -33.5% | -51.6% |
| 2023 | +73.4% | +66.0% |
| 2024 | +39.1% | +13.9% |
| 2025 | +49.2% | +283.7% |
| 2026 | +59.1% | +168.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SMH and WDC good diversifiers for each other?
Only partially. A correlation of 0.66 means SMH and WDC 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 WDC?
Using weekly returns as of 2026-08-27: 0.66 over 3 years, with 0.61 over the last year and 0.66 over 5 years.
Is WDC a good diversifier for SMH?
Only partially. A correlation of 0.66 means SMH and WDC share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.66 mean?
A reading of 0.66 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-wdc.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/smh-vs-wdc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SMH correlations · WDC correlations
