Drawdown history

SMH max drawdown: 82.1%

VanEck Semiconductor ETF. From its 2000-08-31 peak, SMH fell 82.1% to the 2009-02-28 trough and needed 8.5 years to make a new high (2017-03-31). Computed from 313 months of history starting 2000-06-30, including extended pre-ETF data where available.

Semiconductors, boom-bust amplitude well beyond the broad market.

SMH drawdown statistics

Maximum drawdown
-82.1%

2000-08-31 peak to 2009-02-28 trough.

Recovery time
8.5 years

New high reached 2017-03-31.

Time underwater
0.8%

Share of all months spent below a prior high.

Worst 12 months
-58.4%

Rolling year ending 2001-09-30.

For context, SPY (the S&P 500 baseline) had a maximum drawdown of 50.8% over the same kind of monthly-close analysis.

The biggest SMH drawdowns on record

DepthPeakTroughRecoveredPeak to troughTotal underwater
-82.1%2000-08-312009-02-282017-03-31102 mo16.6 years
-40.0%2021-12-312022-09-302023-07-319 mo19 months
-18.6%2024-06-302025-04-302025-06-3010 mo12 months
-18.3%2018-08-312018-12-312019-04-304 mo8 months
-17.2%2019-12-312020-03-312020-06-303 mo6 months

Methodology: monthly closing prices, peak-to-trough on total return where available. History extends before the ETF's launch via documented proxy chains (index funds, indices, and academic series), the same data that powers BestFolio's strategy backtests. Educational information, not investment advice.

Drawdowns are the reason tactical strategies exist

Buy-and-hold SMH means living through every number on this page. BestFolio tracks 46+ published TAA strategies whose whole job is cutting these drawdowns, with out-of-sample track records.

Disclaimer: BestFolio is an informational tool only and does not provide investment advice, recommendations, or solicitations to buy or sell securities. All strategy signals, backtests, and performance metrics are provided for educational and research purposes. Past performance is not indicative of future results. You are solely responsible for your own investment decisions. BestFolio is not a registered investment advisor, broker-dealer, or financial planner. Always consult a qualified financial professional before making investment decisions.

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