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SMH vs. QQQ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

SMH vs. QQQ

Last updated Aug 4, 2026
Documentation

SMH (VanEck Semiconductor ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, SMH returned 33.99%/yr vs 20.46%/yr for QQQ. Their correlation of 0.83 means they have usually moved in the same direction. SMH charges 0.35%/yr vs 0.18%/yr for QQQ.

Performance

SMH vs. QQQ - Performance Comparison

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

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Returns By Period

In the year-to-date period, SMH achieves a 51.46% return, which is significantly higher than QQQ's 14.23% return. Over the past 10 years, SMH has outperformed QQQ with an annualized return of 33.99%, while QQQ has yielded a comparatively lower 20.46% annualized return.

SMH

1D
0.91%
1M
-7.91%
6M
33.70%
YTD
51.46%
1Y
92.69%
3Y*
53.04%
5Y*
32.99%
10Y*
33.99%
ALL TIME*
11.09%

QQQ

1D
1.76%
1M
-1.76%
6M
12.07%
YTD
14.23%
1Y
27.00%
3Y*
24.17%
5Y*
14.45%
10Y*
20.46%
ALL TIME*
10.70%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

PositionAvg. Volume Value (2W)Avg. Volume Value (1M)Avg. Volume Value (3M)

QQQ

Invesco QQQ ETF
$31.40B$28.17B$31.69B

SMH

VanEck Semiconductor ETF
$8.29B$7.23B$7.12B

SMH vs. QQQ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
SMH
VanEck Semiconductor ETF		51.46%49.17%39.10%73.38%-33.53%42.13%55.53%64.45%-9.05%38.48%
QQQ
Invesco QQQ ETF		14.23%20.77%25.58%54.86%-32.58%27.42%48.62%38.96%-0.13%32.66%

Correlation

The correlation between SMH and QQQ is 0.88, meaning they have usually moved in the same direction, including during past declines.

Correlation
Correlation (1Y)
Focuses on recent behavior, but can change the most.

0.88

Correlation (3Y)
Balances recent behavior with more history.

0.87

Correlation (5Y)
Shows whether the relationship held over a longer period.

0.88

Correlation (10Y)
Provides a long-term view across more market conditions.

0.85

Correlation (All Time)
Calculated using the full available price history since Jun 5, 2000

0.83

The correlation between SMH and QQQ has been stable across timeframes, ranging from 0.83 to 0.88 - a consistent structural relationship.

SMH vs. QQQ - Sectors Allocation Comparison

Sectors
SMH
QQQ

Technology

100.0%
60.9%

Basic Materials

-

1.0%

Communication Services

-

13.1%

Consumer Cyclical

-

10.7%

Consumer Defensive

-

6.3%

Energy

-

0.5%

Financial Services

-

0.2%

Healthcare

-

3.6%

Industrials

-

2.7%

Real Estate

-

0.1%

Utilities

-

1.1%

Technology

SMH
100.0%
QQQ
60.9%

Basic Materials

SMH

-

QQQ
1.0%

Communication Services

SMH

-

QQQ
13.1%

Consumer Cyclical

SMH

-

QQQ
10.7%

Consumer Defensive

SMH

-

QQQ
6.3%

Energy

SMH

-

QQQ
0.5%

Financial Services

SMH

-

QQQ
0.2%

Healthcare

SMH

-

QQQ
3.6%

Industrials

SMH

-

QQQ
2.7%

Real Estate

SMH

-

QQQ
0.1%

Utilities

SMH

-

QQQ
1.1%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

VanEck Semiconductor ETF

Invesco QQQ ETF

Often compared with SMH:
SMH vs. SOXXSMH vs. VGTSMH vs. FSELXSMH vs. SPYSMH vs. SOXQSMH vs. XLKSMH vs. SMHX
Often compared with QQQ:
QQQ vs. SPYQQQ vs. VOOQQQ vs. VGTQQQ vs. TQQQQQQ vs. QQQMQQQ vs. SPMOQQQ vs. QQQI

Return for Risk

SMH vs. QQQ — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.
SMH
SMH Risk / Return Rank: 8888
Overall Rank
SMH Sharpe Ratio Rank: 9292
Sharpe Ratio Rank
SMH Sortino Ratio Rank: 8484
Sortino Ratio Rank
SMH Omega Ratio Rank: 8585
Omega Ratio Rank
SMH Calmar Ratio Rank: 8989
Calmar Ratio Rank
SMH Martin Ratio Rank: 9191
Martin Ratio Rank
QQQ
QQQ Risk / Return Rank: 5858
Overall Rank
QQQ Sharpe Ratio Rank: 5858
Sharpe Ratio Rank
QQQ Sortino Ratio Rank: 5555
Sortino Ratio Rank
QQQ Omega Ratio Rank: 5555
Omega Ratio Rank
QQQ Calmar Ratio Rank: 6464
Calmar Ratio Rank
QQQ Martin Ratio Rank: 5959
Martin Ratio Rank
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.

SMH vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Semiconductor ETF (SMH) and Invesco QQQ ETF (QQQ). 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.

SMHQQQDifference
Sharpe ratioReturn per unit of total volatility
2.43
1.40

+1.02

Sortino ratioReturn per unit of downside risk
2.80
1.95

+0.85

Omega ratioGain probability vs. loss probability

1.37

1.25

+0.13

Calmar ratioReturn relative to maximum drawdown

3.79

2.27

+1.52

Martin ratioReturn relative to average drawdown

15.18

7.21

+7.98

SMH vs. QQQ - Sharpe Ratio Comparison

The current SMH Sharpe Ratio is 2.43, which is higher than the QQQ Sharpe Ratio of 1.40. The chart below compares the historical Sharpe Ratios of SMH and QQQ, 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

SMH vs. QQQ - Drawdown Comparison

The maximum SMH drawdown since its inception was -84.96%, roughly equal to the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for SMH and QQQ.

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Drawdown Indicators

SMHQQQDifference

Max Drawdown

Largest peak-to-trough decline

-84.96%

-82.97%

-1.99%

Max Drawdown (1Y)

Largest decline over 1 year

-24.62%

-11.96%

-12.66%

Max Drawdown (3Y)

Largest decline over 3 years

-35.74%

-22.77%

-12.97%

Max Drawdown (5Y)

Largest decline over 5 years

-45.30%

-35.12%

-10.18%

Max Drawdown (10Y)

Largest decline over 10 years

-45.30%

-35.12%

-10.18%

Current Drawdown

Current decline from peak

-18.46%

-6.07%

-12.39%

Average Drawdown

Average peak-to-trough decline

-40.89%

-32.61%

-8.28%

Ulcer Index

Depth and duration of drawdowns from previous peaks

6.13%

3.76%

+2.37%

Volatility

SMH vs. QQQ - Volatility Comparison

VanEck Semiconductor ETF (SMH) has a higher volatility of 14.15% compared to Invesco QQQ ETF (QQQ) at 6.96%. This indicates that SMH's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

SMHQQQDifference

Volatility (1M)

Calculated over the trailing 1-month period

14.15%

6.96%

+7.19%

Volatility (6M)

Calculated over the trailing 6-month period

32.94%

16.12%

+16.82%

Volatility (1Y)

Calculated over the trailing 1-year period

38.50%

19.37%

+19.13%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

36.51%

22.92%

+13.59%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

33.33%

22.51%

+10.82%

SMH vs. QQQ - Expense Ratio Comparison

SMH has a 0.35% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

SMH vs. QQQ - Dividend Comparison

SMH's dividend yield for the trailing twelve months is around 0.20%, less than QQQ's 0.43% yield.

PositionTTM20252024202320222021202020192018201720162015
QQQ
Invesco QQQ ETF		0.43%0.45%0.56%0.62%0.80%0.43%0.55%0.74%0.91%0.84%1.06%0.99%
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

SMH and QQQ have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

SMH has higher volatility (14.15%) compared to QQQ (6.96%). In terms of maximum drawdown, SMH dropped -84.96% vs QQQ's -82.97%.

On 10-year performance, SMH leads with 33.99% vs 20.46% for QQQ. On fees, QQQ is cheaper at 0.18% per year. On volatility, QQQ has been the lower-risk option at 6.96%. 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 33.99% return vs 20.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

QQQ is cheaper with a 0.18% expense ratio, compared with 0.35% for SMH.

QQQ has the higher dividend yield at 0.43%, compared with 0.20% for SMH.

SMH is categorized as Semiconductors, while QQQ is Nasdaq-100. SMH tracks MVIS US Listed Semiconductor 25 Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: VanEck and Invesco. Their fees differ too: 0.35% for SMH and 0.18% for QQQ.

SMH currently has the higher Sharpe Ratio (2.43 vs 1.40), 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.

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