SMH vs XBI: Correlation
Measured on weekly returns over the past three years, VanEck Semiconductor ETF (SMH) and SPDR S&P Biotech ETF (XBI) carry a correlation of 0.44, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SMH and XBI?
Over the past 3 years, SMH and XBI moved with a correlation of 0.44, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.26 versus 0.44 over 3 years. Over 5 years the correlation is 0.46, and the annualized covariance of weekly returns is 409.1 %².
Within SMH's tracked universe of 88 assets, XBI comes in at #76 by 3-year correlation. The trailing year gives SMH the advantage: +93.1% versus +87.2%, a 5.9-point spread. The rolling one-year correlation moved between 0.20 and 0.60 over the past three years, a moderate range.
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 XBI: side by side
| SMH (VanEck Semiconductor ETF) | XBI (SPDR S&P Biotech ETF) | |
|---|---|---|
| 1-year return | +93.1% | +87.2% |
| 5-year return | +332.8% | +28.6% |
| Volatility (ann.) | 33.7% | 27.7% |
| Beta vs S&P 500 | 1.91 | 1.09 |
| Max drawdown (3Y) | -35.7% | -33.0% |
| Sector / category | ETF · Thematic | ETF · Thematic |
Year-by-year returns
| Year | SMH | XBI |
|---|---|---|
| 2022 | -33.5% | -25.9% |
| 2023 | +73.4% | +7.6% |
| 2024 | +39.1% | +1.0% |
| 2025 | +49.2% | +35.9% |
| 2026 | +59.1% | +38.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SMH and XBI good diversifiers for each other?
Reasonably. At 0.44, SMH and XBI keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between SMH and XBI?
As of 2026-08-27, the correlation of weekly returns between SMH and XBI is 0.44 over 3 years, 0.26 over 1 year and 0.46 over 5 years.
Is XBI a good diversifier for SMH?
Reasonably. At 0.44, SMH and XBI keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.44 mean?
A reading of 0.44 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-xbi.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/smh-vs-xbi/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SMH correlations · XBI correlations
