QQQU vs. SMH

Last updated Aug 2, 2026

QQQU (Direxion Daily Magnificent 7 Bull 2X Shares) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - QQQU is a Leveraged Equities fund tracking the Indxx Magnificent 7 Index (200%), while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past year, QQQU returned 28.43% vs 90.95% for SMH. Their 0.67 correlation means they have sometimes moved together and sometimes differently. QQQU charges 0.98%/yr vs 0.35%/yr for SMH.

Performance

QQQU vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Magnificent 7 Bull 2X Shares (QQQU) 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, QQQU achieves a -5.22% return, which is significantly lower than SMH's 50.09% return.

QQQU

• 1D: 6.85%
• 1M: 2.17%
• 6M: -5.40%
• YTD: -5.22%
• 1Y: 28.43%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 43.14%

SMH

• 1D: 0.30%
• 1M: -8.74%
• 6M: 33.97%
• YTD: 50.09%
• 1Y: 90.95%
• 3Y*: 50.56%
• 5Y*: 33.46%
• 10Y*: 34.16%
• ALL TIME*: 11.06%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
QQQU Direxion Daily Magnificent 7 Bull 2X Shares	$2.18M	$2.57M	$3.73M
SMH VanEck Semiconductor ETF	$8.28B	$7.64B	$7.07B

QQQU vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024
QQQU Direxion Daily Magnificent 7 Bull 2X Shares	-5.22%	32.87%	87.67%
SMH VanEck Semiconductor ETF	50.09%	49.17%	7.46%

Correlation

The correlation between QQQU and SMH is 0.58, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.58
Correlation (All Time) Calculated using the full available price history since Mar 7, 2024	0.67

The correlation between QQQU and SMH has been stable across timeframes, ranging from 0.58 to 0.67 - a consistent structural relationship.

QQQU vs. SMH - Sectors Allocation Comparison

Sectors	QQQU	SMH
Technology	42.8%	100.0%
Consumer Cyclical	29.4%	-
Communication Services	27.8%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

QQQU vs. SMH — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

QQQU

QQQU Risk / Return Rank: 23
QQQU Sharpe Ratio Rank: 22
QQQU Sortino Ratio Rank: 25
QQQU Omega Ratio Rank: 24
QQQU Calmar Ratio Rank: 21
QQQU Martin Ratio Rank: 22

SMH

SMH Risk / Return Rank: 87
SMH Sharpe Ratio Rank: 91
SMH Sortino Ratio Rank: 83
SMH Omega Ratio Rank: 84
SMH Calmar Ratio Rank: 88
SMH Martin Ratio Rank: 91

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

QQQU vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Magnificent 7 Bull 2X Shares (QQQU) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	QQQU	SMH	Difference
Sharpe ratio: Return per unit of total volatility	0.46	2.29	-1.84
Sortino ratio: Return per unit of downside risk	0.91	2.70	-1.79
Omega ratio: Gain probability vs. loss probability	1.11	1.36	-0.25
Calmar ratio: Return relative to maximum drawdown	0.56	3.58	-3.02
Martin ratio: Return relative to average drawdown	1.52	14.64	-13.12

QQQU vs. SMH - Sharpe Ratio Comparison

The current QQQU Sharpe Ratio is 0.46, which is lower than the SMH Sharpe Ratio of 2.29. The chart below compares the historical Sharpe Ratios of QQQU 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.

Drawdowns

QQQU vs. SMH - Drawdown Comparison

The maximum QQQU drawdown since its inception was -53.70%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for QQQU and SMH.

Drawdown Indicators

	QQQU	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-53.70%	-84.96%	+31.26%
Max Drawdown (1Y) Largest decline over 1 year	-36.29%	-24.62%	-11.67%
Max Drawdown (3Y) Largest decline over 3 years	—	-35.74%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-45.30%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-45.30%	—
Current Drawdown Current decline from peak	-15.34%	-19.19%	+3.85%
Average Drawdown Average peak-to-trough decline	-13.50%	-40.89%	+27.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	13.41%	6.01%	+7.40%

Volatility

QQQU vs. SMH - Volatility Comparison

Direxion Daily Magnificent 7 Bull 2X Shares (QQQU) has a higher volatility of 16.52% compared to VanEck Semiconductor ETF (SMH) at 14.70%. This indicates that QQQU's price experiences larger fluctuations and is considered to be riskier than SMH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QQQU	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.52%	14.70%	+1.82%
Volatility (6M) Calculated over the trailing 6-month period	34.79%	33.13%	+1.66%
Volatility (1Y) Calculated over the trailing 1-year period	44.63%	38.57%	+6.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	53.39%	36.50%	+16.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	53.39%	33.32%	+20.07%

QQQU vs. SMH - Expense Ratio Comparison

QQQU has a 0.98% expense ratio, which is higher than SMH's 0.35% expense ratio.

Dividends

QQQU vs. SMH - Dividend Comparison

QQQU's dividend yield for the trailing twelve months is around 10.07%, more than SMH's 0.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QQQU Direxion Daily Magnificent 7 Bull 2X Shares	10.07%	9.62%	2.75%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SMH VanEck Semiconductor ETF	0.20%	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 QQQU and SMH in my portfolio?

QQQU and SMH have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QQQU or SMH?

QQQU has higher volatility (16.52%) compared to SMH (14.70%). In terms of maximum drawdown, QQQU dropped -53.70% vs SMH's -84.96%.

Which ETF is better, QQQU or SMH?

On 1-year performance, SMH leads with 90.95% vs 28.43% for QQQU. On fees, SMH is cheaper at 0.35% per year. On volatility, SMH has been the lower-risk option at 14.70%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QQQU or SMH?

Over the 1-year period, SMH has performed better with a 90.95% return vs 28.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QQQU or SMH?

SMH is cheaper with a 0.35% expense ratio, compared with 0.98% for QQQU.

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

QQQU has the higher dividend yield at 10.07%, compared with 0.20% for SMH.

What is the main difference between QQQU and SMH?

QQQU is categorized as Leveraged Equities, while SMH is Semiconductors. QQQU tracks Indxx Magnificent 7 Index (200%), while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: Direxion and VanEck. Their fees differ too: 0.98% for QQQU and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (2.29 vs 0.46), 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.