SMH vs. QQQ

Last updated Jun 5, 2026

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 37.49%/yr vs 21.84%/yr for QQQ. Their correlation of 0.83 suggests significant overlap in exposure. 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.

Returns By Period

In the year-to-date period, SMH achieves a 74.25% return, which is significantly higher than QQQ's 20.71% return. Over the past 10 years, SMH has outperformed QQQ with an annualized return of 37.49%, while QQQ has yielded a comparatively lower 21.84% annualized return.

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%

QQQ

• 1D: -0.48%
• 1M: 8.66%
• YTD: 20.71%
• 6M: 19.19%
• 1Y: 40.74%
• 3Y*: 28.54%
• 5Y*: 17.86%
• 10Y*: 21.84%

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

SMH vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SMH VanEck Semiconductor ETF	74.25%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%
QQQ Invesco QQQ ETF	20.71%	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 0.84, 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	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (10Y) Calculated over the trailing 10-year period	0.85
Correlation (All Time) Calculated using the full available price history since Jun 6, 2000	0.83

The correlation between SMH and QQQ has been stable across timeframes, ranging from 0.83 to 0.87 - a consistent structural relationship.

SMH vs. QQQ - Sectors Allocation Comparison

Sectors	SMH	QQQ
Technology	100.0%	53.8%
Basic Materials	-	1.1%
Communication Services	-	15.8%
Consumer Cyclical	-	12.3%
Consumer Defensive	-	7.7%
Energy	-	0.6%
Financial Services	-	0.2%
Healthcare	-	4.2%
Industrials	-	2.8%
Real Estate	-	0.1%
Utilities	-	1.4%

Return for Risk

SMH vs. QQQ — Risk / Return Rank

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

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

QQQ

QQQ Risk / Return Rank: 74
QQQ Sharpe Ratio Rank: 80
QQQ Sortino Ratio Rank: 76
QQQ Omega Ratio Rank: 75
QQQ Calmar Ratio Rank: 70
QQQ Martin Ratio Rank: 71

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.

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.

	SMH	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	4.94	2.57	+2.37
Sortino ratio: Return per unit of downside risk	5.05	3.37	+1.68
Omega ratio: Gain probability vs. loss probability	1.69	1.44	+0.25
Calmar ratio: Return relative to maximum drawdown	10.11	3.42	+6.69
Martin ratio: Return relative to average drawdown	38.76	13.14	+25.62
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SMH vs. QQQ - Sharpe Ratio Comparison

The current SMH Sharpe Ratio is 4.94, which is higher than the QQQ Sharpe Ratio of 2.57. 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.

Sharpe Ratios by Period

	SMH	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.94	2.57	+2.37
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.11	0.80	+0.31
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.15	0.98	+0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.41	-0.07

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.

Drawdown Indicators

	SMH	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-84.96%	-82.97%	-1.99%
Max Drawdown (1Y) Largest decline over 1 year	-14.93%	-11.96%	-2.97%
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	-1.63%	-0.74%	-0.89%
Average Drawdown Average peak-to-trough decline	-41.08%	-32.78%	-8.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.89%	3.11%	+0.78%

Volatility

SMH vs. QQQ - Volatility Comparison

VanEck Semiconductor ETF (SMH) has a higher volatility of 11.58% compared to Invesco QQQ ETF (QQQ) at 4.51%. 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.

Volatility by Period

	SMH	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.58%	4.51%	+7.07%
Volatility (6M) Calculated over the trailing 6-month period	24.35%	12.10%	+12.25%
Volatility (1Y) Calculated over the trailing 1-year period	30.57%	15.94%	+14.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.01%	22.37%	+12.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.57%	22.29%	+10.28%

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 0.18%, less than QQQ's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QQQ Invesco QQQ ETF	0.38%	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	0.18%	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 SMH and QQQ in my portfolio?

SMH and QQQ have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SMH or QQQ?

SMH has higher volatility (11.58%) compared to QQQ (4.51%). In terms of maximum drawdown, SMH dropped -84.96% vs QQQ's -82.97%.

Which ETF is better, SMH or QQQ?

On 10-year performance, SMH leads with 37.49% vs 21.84% for QQQ. On fees, QQQ is cheaper at 0.18% per year. On volatility, QQQ has been the lower-risk option at 4.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMH or QQQ?

Over the 10-year period, SMH has performed better with a 37.49% return vs 21.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMH or QQQ?

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

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

QQQ has the higher dividend yield at 0.38%, compared with 0.18% for SMH.

What is the main difference between SMH and QQQ?

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.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (4.94 vs 2.57), 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.