QTEC vs. SMH

Last updated Jun 5, 2026

QTEC (First Trust NASDAQ-100 Technology Sector Index Fund) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - QTEC is a Nasdaq-100 fund tracking the NASDAQ-100 Technology Sector Index, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, QTEC returned 22.85%/yr vs 37.49%/yr for SMH. Their correlation of 0.90 suggests significant overlap in exposure. QTEC charges 0.57%/yr vs 0.35%/yr for SMH.

Performance

QTEC vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust NASDAQ-100 Technology Sector Index Fund (QTEC) 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, QTEC achieves a 43.17% return, which is significantly lower than SMH's 74.25% return. Over the past 10 years, QTEC has underperformed SMH with an annualized return of 22.85%, while SMH has yielded a comparatively higher 37.49% annualized return.

QTEC

• 1D: -1.08%
• 1M: 18.57%
• YTD: 43.17%
• 6M: 39.34%
• 1Y: 64.90%
• 3Y*: 32.59%
• 5Y*: 17.36%
• 10Y*: 22.85%

SMH

• 1D: -1.63%
• 1M: 20.06%
• YTD: 74.25%
• 6M: 74.08%
• 1Y: 150.04%
• 3Y*: 63.96%
• 5Y*: 38.76%
• 10Y*: 37.49%

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

QTEC vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QTEC First Trust NASDAQ-100 Technology Sector Index Fund	43.17%	22.28%	7.32%	67.02%	-39.83%	26.89%	38.76%	48.22%	-4.62%	37.78%
SMH VanEck Semiconductor ETF	74.25%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%

Correlation

The correlation between QTEC and SMH is 0.83, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.92
Correlation (All Time) Calculated using the full available price history since May 3, 2006	0.90

The correlation between QTEC and SMH has been stable across timeframes, ranging from 0.83 to 0.92 - a consistent structural relationship.

QTEC vs. SMH - Sectors Allocation Comparison

Sectors	QTEC	SMH
Technology	87.9%	100.0%
Communication Services	6.2%	-
Consumer Cyclical	4.0%	-
Industrials	1.9%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

QTEC vs. SMH — Risk / Return Rank

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

QTEC

QTEC Risk / Return Rank: 79
QTEC Sharpe Ratio Rank: 87
QTEC Sortino Ratio Rank: 80
QTEC Omega Ratio Rank: 77
QTEC Calmar Ratio Rank: 80
QTEC Martin Ratio Rank: 71

SMH

SMH Risk / Return Rank: 96
SMH Sharpe Ratio Rank: 97
SMH Sortino Ratio Rank: 95
SMH Omega Ratio Rank: 94
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.

QTEC vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust NASDAQ-100 Technology Sector Index Fund (QTEC) 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.

	QTEC	SMH	Difference
Sharpe ratio: Return per unit of total volatility	2.84	4.94	-2.10
Sortino ratio: Return per unit of downside risk	3.54	5.05	-1.51
Omega ratio: Gain probability vs. loss probability	1.45	1.69	-0.24
Calmar ratio: Return relative to maximum drawdown	4.07	10.11	-6.04
Martin ratio: Return relative to average drawdown	13.17	38.76	-25.59
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

QTEC vs. SMH - Sharpe Ratio Comparison

The current QTEC Sharpe Ratio is 2.84, which is lower than the SMH Sharpe Ratio of 4.94. The chart below compares the historical Sharpe Ratios of QTEC 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

	QTEC	SMH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.84	4.94	-2.10
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.60	1.11	-0.51
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.83	1.15	-0.32
Sharpe Ratio (All Time) Calculated using the full available price history	0.60	0.34	+0.26

Drawdowns

QTEC vs. SMH - Drawdown Comparison

The maximum QTEC drawdown since its inception was -58.86%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for QTEC and SMH.

Drawdown Indicators

	QTEC	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-58.86%	-84.96%	+26.10%
Max Drawdown (1Y) Largest decline over 1 year	-16.03%	-14.93%	-1.10%
Max Drawdown (3Y) Largest decline over 3 years	-29.00%	-35.74%	+6.74%
Max Drawdown (5Y) Largest decline over 5 years	-45.54%	-45.30%	-0.24%
Max Drawdown (10Y) Largest decline over 10 years	-45.54%	-45.30%	-0.24%
Current Drawdown Current decline from peak	-1.08%	-1.63%	+0.55%
Average Drawdown Average peak-to-trough decline	-9.89%	-41.08%	+31.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.94%	3.89%	+1.05%

Volatility

QTEC vs. SMH - Volatility Comparison

The current volatility for First Trust NASDAQ-100 Technology Sector Index Fund (QTEC) is 7.51%, while VanEck Semiconductor ETF (SMH) has a volatility of 11.58%. This indicates that QTEC 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

	QTEC	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.51%	11.58%	-4.07%
Volatility (6M) Calculated over the trailing 6-month period	18.24%	24.35%	-6.11%
Volatility (1Y) Calculated over the trailing 1-year period	22.97%	30.57%	-7.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.17%	35.01%	-5.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.50%	32.57%	-5.07%

QTEC vs. SMH - Expense Ratio Comparison

QTEC has a 0.57% expense ratio, which is higher than SMH's 0.35% expense ratio.

Dividends

QTEC vs. SMH - Dividend Comparison

QTEC has not paid dividends to shareholders, while SMH's dividend yield for the trailing twelve months is around 0.18%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QTEC First Trust NASDAQ-100 Technology Sector Index Fund	0.00%	0.00%	0.02%	0.14%	0.15%	0.02%	0.44%	0.68%	0.91%	0.80%	1.29%	0.99%
SMH VanEck Semiconductor ETF	0.18%	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 QTEC and SMH in my portfolio?

QTEC and SMH have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QTEC or SMH?

SMH has higher volatility (11.58%) compared to QTEC (7.51%). In terms of maximum drawdown, QTEC dropped -58.86% vs SMH's -84.96%.

Which ETF is better, QTEC or SMH?

On 10-year performance, SMH leads with 37.49% vs 22.85% for QTEC. On fees, SMH is cheaper at 0.35% per year. On volatility, QTEC has been the lower-risk option at 7.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QTEC or SMH?

Over the 10-year period, SMH has performed better with a 37.49% return vs 22.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QTEC or SMH?

SMH is cheaper with a 0.35% expense ratio, compared with 0.57% for QTEC.

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

SMH has the higher dividend yield at 0.18%, compared with 0.00% for QTEC.

What is the main difference between QTEC and SMH?

QTEC is categorized as Nasdaq-100, while SMH is Semiconductors. QTEC tracks NASDAQ-100 Technology Sector Index, while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: First Trust and VanEck. Their fees differ too: 0.57% for QTEC and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (4.94 vs 2.84), 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.