QDF vs. SMH

Last updated Jun 4, 2026

QDF (FlexShares Quality Dividend Index Fund) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - QDF is a Large Cap Value Equities fund tracking the Northern Trust Quality Dividend Index, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, QDF returned 12.18%/yr vs 37.68%/yr for SMH. A 0.71 correlation means they provide meaningful diversification when combined. QDF charges 0.37%/yr vs 0.35%/yr for SMH.

Performance

QDF vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Quality Dividend Index Fund (QDF) and VanEck Semiconductor ETF (SMH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, QDF achieves a 10.70% return, which is significantly lower than SMH's 77.13% return. Over the past 10 years, QDF has underperformed SMH with an annualized return of 12.18%, while SMH has yielded a comparatively higher 37.68% annualized return.

QDF

• 1D: -0.56%
• 1M: 4.60%
• YTD: 10.70%
• 6M: 10.82%
• 1Y: 27.64%
• 3Y*: 19.21%
• 5Y*: 11.90%
• 10Y*: 12.18%

SMH

• 1D: 0.90%
• 1M: 25.87%
• YTD: 77.13%
• 6M: 75.61%
• 1Y: 157.20%
• 3Y*: 64.17%
• 5Y*: 39.21%
• 10Y*: 37.68%

*Multi-year figures are annualized to reflect compound growth (CAGR)

QDF vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QDF FlexShares Quality Dividend Index Fund	10.70%	16.58%	16.95%	19.71%	-12.13%	26.65%	4.86%	25.71%	-7.97%	17.42%
SMH VanEck Semiconductor ETF	77.13%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%

Correlation

The correlation between QDF and SMH is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.70
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (10Y) Calculated over the trailing 10-year period	0.71
Correlation (All Time) Calculated using the full available price history since Dec 20, 2012	0.71

The correlation between QDF and SMH has been stable across timeframes, ranging from 0.70 to 0.73 - a consistent structural relationship.

QDF vs. SMH - Sectors Allocation Comparison

Sectors	QDF	SMH
Technology	38.3%	100.0%
Financial Services	13.2%	-
Industrials	8.9%	-
Healthcare	8.3%	-
Consumer Cyclical	6.9%	-
Communication Services	6.8%	-
Consumer Defensive	5.5%	-
Real Estate	5.4%	-
Utilities	2.1%	-
Basic Materials	1.6%	-
Energy	0.9%	-

Return for Risk

QDF vs. SMH — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

QDF

QDF Risk / Return Rank: 73
QDF Sharpe Ratio Rank: 73
QDF Sortino Ratio Rank: 73
QDF Omega Ratio Rank: 73
QDF Calmar Ratio Rank: 70
QDF Martin Ratio Rank: 78

SMH

SMH Risk / Return Rank: 96
SMH Sharpe Ratio Rank: 98
SMH Sortino Ratio Rank: 95
SMH Omega Ratio Rank: 95
SMH Calmar Ratio Rank: 97
SMH Martin Ratio Rank: 96

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

QDF vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Quality Dividend Index Fund (QDF) and VanEck Semiconductor ETF (SMH). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	QDF	SMH	Difference
Sharpe ratio: Return per unit of total volatility	2.40	5.19	-2.79
Sortino ratio: Return per unit of downside risk	3.36	5.22	-1.86
Omega ratio: Gain probability vs. loss probability	1.44	1.72	-0.28
Calmar ratio: Return relative to maximum drawdown	3.52	10.59	-7.08
Martin ratio: Return relative to average drawdown	15.37	40.63	-25.25
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

QDF vs. SMH - Sharpe Ratio Comparison

The current QDF Sharpe Ratio is 2.40, which is lower than the SMH Sharpe Ratio of 5.19. The chart below compares the historical Sharpe Ratios of QDF and SMH, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	QDF	SMH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.40	5.19	-2.79
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.77	1.13	-0.36
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.70	1.16	-0.46
Sharpe Ratio (All Time) Calculated using the full available price history	0.78	0.34	+0.44

Drawdowns

QDF vs. SMH - Drawdown Comparison

The maximum QDF drawdown since its inception was -36.67%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for QDF and SMH.

Drawdown Indicators

	QDF	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-36.67%	-84.96%	+48.29%
Max Drawdown (1Y) Largest decline over 1 year	-7.90%	-14.93%	+7.03%
Max Drawdown (3Y) Largest decline over 3 years	-18.01%	-35.74%	+17.73%
Max Drawdown (5Y) Largest decline over 5 years	-22.06%	-45.30%	+23.24%
Max Drawdown (10Y) Largest decline over 10 years	-36.67%	-45.30%	+8.63%
Current Drawdown Current decline from peak	-0.56%	0.00%	-0.56%
Average Drawdown Average peak-to-trough decline	-3.65%	-41.09%	+37.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.80%	3.89%	-2.09%

Volatility

QDF vs. SMH - Volatility Comparison

The current volatility for FlexShares Quality Dividend Index Fund (QDF) is 2.95%, while VanEck Semiconductor ETF (SMH) has a volatility of 11.47%. This indicates that QDF experiences smaller price fluctuations and is considered to be less risky than SMH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QDF	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.95%	11.47%	-8.52%
Volatility (6M) Calculated over the trailing 6-month period	8.76%	24.29%	-15.53%
Volatility (1Y) Calculated over the trailing 1-year period	11.60%	30.56%	-18.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.60%	35.01%	-19.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.39%	32.57%	-15.18%

QDF vs. SMH - Expense Ratio Comparison

QDF has a 0.37% expense ratio, which is higher than SMH's 0.35% expense ratio.

Dividends

QDF vs. SMH - Dividend Comparison

QDF's dividend yield for the trailing twelve months is around 1.50%, more than SMH's 0.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QDF FlexShares Quality Dividend Index Fund	1.50%	1.65%	1.93%	2.19%	2.45%	1.90%	2.38%	3.05%	4.29%	2.70%	3.07%	3.04%
SMH VanEck Semiconductor ETF	0.17%	0.31%	0.44%	0.60%	1.18%	0.51%	0.69%	1.50%	1.88%	1.43%	0.80%	2.14%

Frequently Asked Questions

Can I hold both QDF and SMH in my portfolio?

QDF and SMH have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QDF or SMH?

SMH has higher volatility (11.47%) compared to QDF (2.95%). In terms of maximum drawdown, QDF dropped -36.67% vs SMH's -84.96%.

Which ETF is better, QDF or SMH?

On 10-year performance, SMH leads with 37.68% vs 12.18% for QDF. On fees, SMH is cheaper at 0.35% per year. On volatility, QDF has been the lower-risk option at 2.95%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QDF or SMH?

Over the 10-year period, SMH has performed better with a 37.68% return vs 12.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QDF or SMH?

SMH is cheaper with a 0.35% expense ratio, compared with 0.37% for QDF.

Which ETF pays a higher dividend yield, QDF or SMH?

QDF has the higher dividend yield at 1.50%, compared with 0.17% for SMH.

What is the main difference between QDF and SMH?

QDF is categorized as Large Cap Value Equities, while SMH is Semiconductors. QDF tracks Northern Trust Quality Dividend Index, while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: FlexShares and VanEck. Their fees differ too: 0.37% for QDF and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (5.19 vs 2.40), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.