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QUAL vs. SMH
Performance
Return for Risk
Drawdowns
Volatility
Dividends

QUAL vs. SMH

Last updated Jun 13, 2026

QUAL (iShares MSCI USA Quality Factor ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - QUAL is a Large Cap Blend Equities fund tracking the MSCI USA Sector Neutral Quality Index, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, QUAL returned 14.46%/yr vs 37.49%/yr for SMH. A 0.75 correlation means they provide meaningful diversification when combined. QUAL charges 0.15%/yr vs 0.35%/yr for SMH.

Performance

QUAL vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Quality Factor ETF (QUAL) and VanEck Semiconductor ETF (SMH). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, QUAL achieves a 9.44% return, which is significantly lower than SMH's 72.15% return. Over the past 10 years, QUAL has underperformed SMH with an annualized return of 14.46%, while SMH has yielded a comparatively higher 37.49% annualized return.

QUAL

1D
0.47%
1M
2.82%
YTD
9.44%
6M
9.29%
1Y
20.90%
3Y*
19.30%
5Y*
11.97%
10Y*
14.46%

SMH

1D
1.72%
1M
8.30%
YTD
72.15%
6M
75.62%
1Y
136.32%
3Y*
60.05%
5Y*
38.42%
10Y*
37.49%
*Multi-year figures are annualized to reflect compound growth (CAGR)

QUAL vs. SMH - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
QUAL
iShares MSCI USA Quality Factor ETF		9.44%12.65%22.29%30.88%-20.50%26.94%17.04%33.89%-5.70%22.26%
SMH
VanEck Semiconductor ETF		72.15%49.17%39.10%73.38%-33.53%42.13%55.53%64.45%-9.05%38.48%

Correlation

The correlation between QUAL and SMH is 0.69, 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

0.69

Correlation (3Y)
Calculated over the trailing 3-year period

0.76

Correlation (5Y)
Calculated over the trailing 5-year period

0.80

Correlation (10Y)
Calculated over the trailing 10-year period

0.76

Correlation (All Time)
Calculated using the full available price history since Jul 18, 2013

0.75

The correlation between QUAL and SMH shifts across timeframes, from 0.69 (1 year) to 0.80 (5 years), reflecting how their relationship changes across market environments.

QUAL vs. SMH - Sectors Allocation Comparison

Sectors
QUAL
SMH

Technology

36.5%
100.0%

Financial Services

11.5%

-

Communication Services

11.1%

-

Consumer Cyclical

9.3%

-

Healthcare

9.0%

-

Industrials

8.2%

-

Consumer Defensive

4.9%

-

Energy

4.0%

-

Utilities

1.9%

-

Real Estate

1.8%

-

Basic Materials

1.7%

-

Technology

QUAL
36.5%
SMH
100.0%

Financial Services

QUAL
11.5%
SMH

-

Communication Services

QUAL
11.1%
SMH

-

Consumer Cyclical

QUAL
9.3%
SMH

-

Healthcare

QUAL
9.0%
SMH

-

Industrials

QUAL
8.2%
SMH

-

Consumer Defensive

QUAL
4.9%
SMH

-

Energy

QUAL
4.0%
SMH

-

Utilities

QUAL
1.9%
SMH

-

Real Estate

QUAL
1.8%
SMH

-

Basic Materials

QUAL
1.7%
SMH

-

Compare stocks, funds, or ETFs

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iShares MSCI USA Quality Factor ETF

VanEck Semiconductor ETF

Often compared with QUAL:
QUAL vs. SPHQQUAL vs. SPYQUAL vs. MTUMQUAL vs. USMVQUAL vs. VOOQUAL vs. IVVQUAL vs. SCHD
Often compared with SMH:
SMH vs. SOXXSMH vs. QQQSMH vs. VGTSMH vs. FSELXSMH vs. SPYSMH vs. SMHXSMH vs. XLK

Return for Risk

QUAL vs. SMH — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
QUAL
QUAL Risk / Return Rank: 5959
Overall Rank
QUAL Sharpe Ratio Rank: 5959
Sharpe Ratio Rank
QUAL Sortino Ratio Rank: 6060
Sortino Ratio Rank
QUAL Omega Ratio Rank: 5656
Omega Ratio Rank
QUAL Calmar Ratio Rank: 5353
Calmar Ratio Rank
QUAL Martin Ratio Rank: 6767
Martin Ratio Rank
SMH
SMH Risk / Return Rank: 9696
Overall Rank
SMH Sharpe Ratio Rank: 9797
Sharpe Ratio Rank
SMH Sortino Ratio Rank: 9494
Sortino Ratio Rank
SMH Omega Ratio Rank: 9494
Omega Ratio Rank
SMH Calmar Ratio Rank: 9797
Calmar Ratio Rank
SMH Martin Ratio Rank: 9696
Martin Ratio Rank
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.

QUAL vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality Factor ETF (QUAL) 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.

QUALSMHDifference
Sharpe ratioReturn per unit of total volatility
1.74
4.13

-2.40

Sortino ratioReturn per unit of downside risk
2.46
4.26

-1.80

Omega ratioGain probability vs. loss probability

1.31

1.60

-0.29

Calmar ratioReturn relative to maximum drawdown

2.32

9.18

-6.86

Martin ratioReturn relative to average drawdown

10.60

33.74

-23.14

QUAL vs. SMH - Sharpe Ratio Comparison

The current QUAL Sharpe Ratio is 1.74, which is lower than the SMH Sharpe Ratio of 4.13. The chart below compares the historical Sharpe Ratios of QUAL 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.

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Drawdowns

QUAL vs. SMH - Drawdown Comparison

The maximum QUAL drawdown since its inception was -34.06%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for QUAL and SMH.

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Drawdown Indicators

QUALSMHDifference

Max Drawdown

Largest peak-to-trough decline

-34.06%

-84.96%

+50.90%

Max Drawdown (1Y)

Largest decline over 1 year

-9.03%

-14.93%

+5.90%

Max Drawdown (3Y)

Largest decline over 3 years

-18.00%

-35.74%

+17.74%

Max Drawdown (5Y)

Largest decline over 5 years

-28.23%

-45.30%

+17.07%

Max Drawdown (10Y)

Largest decline over 10 years

-34.06%

-45.30%

+11.24%

Current Drawdown

Current decline from peak

-0.19%

-2.81%

+2.62%

Average Drawdown

Average peak-to-trough decline

-4.10%

-41.04%

+36.94%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.99%

4.06%

-2.07%

Volatility

QUAL vs. SMH - Volatility Comparison

The current volatility for iShares MSCI USA Quality Factor ETF (QUAL) is 3.63%, while VanEck Semiconductor ETF (SMH) has a volatility of 16.25%. This indicates that QUAL 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.

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Volatility by Period

QUALSMHDifference

Volatility (1M)

Calculated over the trailing 1-month period

3.63%

16.25%

-12.62%

Volatility (6M)

Calculated over the trailing 6-month period

9.43%

27.73%

-18.30%

Volatility (1Y)

Calculated over the trailing 1-year period

12.10%

33.20%

-21.10%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.36%

35.47%

-18.11%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.11%

32.82%

-14.71%

QUAL vs. SMH - Expense Ratio Comparison

QUAL has a 0.15% expense ratio, which is lower than SMH's 0.35% expense ratio.

Dividends

QUAL vs. SMH - Dividend Comparison

QUAL's dividend yield for the trailing twelve months is around 0.87%, more than SMH's 0.18% yield.

PositionTTM20252024202320222021202020192018201720162015
QUAL
iShares MSCI USA Quality Factor ETF		0.87%0.94%1.02%1.23%1.59%1.20%1.39%1.60%2.00%1.76%1.96%1.63%
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

QUAL and SMH have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

SMH has higher volatility (16.25%) compared to QUAL (3.63%). In terms of maximum drawdown, QUAL dropped -34.06% vs SMH's -84.96%.

On 10-year performance, SMH leads with 37.49% vs 14.46% for QUAL. On fees, QUAL is cheaper at 0.15% per year. On volatility, QUAL has been the lower-risk option at 3.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, SMH has performed better with a 37.49% return vs 14.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

QUAL is cheaper with a 0.15% expense ratio, compared with 0.35% for SMH.

QUAL has the higher dividend yield at 0.87%, compared with 0.18% for SMH.

QUAL is categorized as Large Cap Blend Equities, while SMH is Semiconductors. QUAL tracks MSCI USA Sector Neutral Quality Index, while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: iShares and VanEck. Their fees differ too: 0.15% for QUAL and 0.35% for SMH.

SMH currently has the higher Sharpe Ratio (4.13 vs 1.74), 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.

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