SMH vs. TQQQ

Last updated Jul 2, 2026

SMH (VanEck Semiconductor ETF) and TQQQ (ProShares UltraPro QQQ) are both exchange-traded funds - SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index, while TQQQ is a Leveraged Equities fund tracking the NASDAQ-100 Index (300%). Both are passively managed. Over the past 10 years, SMH returned 37.45%/yr vs 44.63%/yr for TQQQ. Their correlation of 0.83 suggests significant overlap in exposure. SMH charges 0.35%/yr vs 0.95%/yr for TQQQ.

Performance

SMH vs. TQQQ - Performance Comparison

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

Returns By Period

In the year-to-date period, SMH achieves a 72.29% return, which is significantly higher than TQQQ's 47.51% return. Over the past 10 years, SMH has underperformed TQQQ with an annualized return of 37.45%, while TQQQ has yielded a comparatively higher 44.63% annualized return.

SMH

• 1D: -5.40%
• 1M: 2.08%
• YTD: 72.29%
• 6M: 72.29%
• 1Y: 125.63%
• 3Y*: 60.45%
• 5Y*: 37.54%
• 10Y*: 37.45%

TQQQ

• 1D: -4.37%
• 1M: -9.76%
• YTD: 47.51%
• 6M: 47.51%
• 1Y: 92.76%
• 3Y*: 57.53%
• 5Y*: 20.74%
• 10Y*: 44.63%

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

SMH vs. TQQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SMH VanEck Semiconductor ETF	72.29%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%
TQQQ ProShares UltraPro QQQ	47.51%	34.35%	58.27%	198.04%	-79.09%	82.98%	110.05%	133.84%	-19.79%	118.06%

Correlation

The correlation between SMH and TQQQ is 0.85, 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	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (10Y) Calculated over the trailing 10-year period	0.85
Correlation (All Time) Calculated using the full available price history since Feb 11, 2010	0.83

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

SMH vs. TQQQ - Sectors Allocation Comparison

Sectors	SMH	TQQQ
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. TQQQ — Risk / Return Rank

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

SMH

SMH Risk / Return Rank: 94
SMH Sharpe Ratio Rank: 96
SMH Sortino Ratio Rank: 91
SMH Omega Ratio Rank: 92
SMH Calmar Ratio Rank: 96
SMH Martin Ratio Rank: 96

TQQQ

TQQQ Risk / Return Rank: 55
TQQQ Sharpe Ratio Rank: 60
TQQQ Sortino Ratio Rank: 50
TQQQ Omega Ratio Rank: 52
TQQQ Calmar Ratio Rank: 60
TQQQ Martin Ratio Rank: 54

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. TQQQ - Risk-Adjusted Trends Comparison

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

	SMH	TQQQ	Difference
Sharpe ratio: Return per unit of total volatility	3.53	1.72	+1.81
Sortino ratio: Return per unit of downside risk	3.68	2.15	+1.53
Omega ratio: Gain probability vs. loss probability	1.52	1.28	+0.24
Calmar ratio: Return relative to maximum drawdown	8.46	2.52	+5.94
Martin ratio: Return relative to average drawdown	29.95	7.91	+22.04

SMH vs. TQQQ - Sharpe Ratio Comparison

The current SMH Sharpe Ratio is 3.53, which is higher than the TQQQ Sharpe Ratio of 1.72. The chart below compares the historical Sharpe Ratios of SMH and TQQQ, 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

SMH vs. TQQQ - Drawdown Comparison

The maximum SMH drawdown since its inception was -84.96%, roughly equal to the maximum TQQQ drawdown of -81.66%. Use the drawdown chart below to compare losses from any high point for SMH and TQQQ.

Drawdown Indicators

	SMH	TQQQ	Difference
Max Drawdown Largest peak-to-trough decline	-84.96%	-81.66%	-3.30%
Max Drawdown (1Y) Largest decline over 1 year	-14.93%	-36.97%	+22.04%
Max Drawdown (3Y) Largest decline over 3 years	-35.74%	-58.04%	+22.30%
Max Drawdown (5Y) Largest decline over 5 years	-45.30%	-81.66%	+36.36%
Max Drawdown (10Y) Largest decline over 10 years	-45.30%	-81.66%	+36.36%
Current Drawdown Current decline from peak	-7.24%	-10.99%	+3.75%
Average Drawdown Average peak-to-trough decline	-40.98%	-18.49%	-22.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.21%	11.77%	-7.56%

Volatility

SMH vs. TQQQ - Volatility Comparison

The current volatility for VanEck Semiconductor ETF (SMH) is 20.63%, while ProShares UltraPro QQQ (TQQQ) has a volatility of 28.72%. This indicates that SMH experiences smaller price fluctuations and is considered to be less risky than TQQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMH	TQQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	20.63%	28.72%	-8.09%
Volatility (6M) Calculated over the trailing 6-month period	30.45%	44.49%	-14.04%
Volatility (1Y) Calculated over the trailing 1-year period	35.83%	54.20%	-18.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	36.02%	67.57%	-31.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	33.05%	66.31%	-33.26%

SMH vs. TQQQ - Expense Ratio Comparison

SMH has a 0.35% expense ratio, which is lower than TQQQ's 0.95% expense ratio.

Dividends

SMH vs. TQQQ - Dividend Comparison

SMH's dividend yield for the trailing twelve months is around 0.18%, less than TQQQ's 0.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
TQQQ ProShares UltraPro QQQ	0.49%	0.65%	1.27%	1.26%	0.57%	0.00%	0.00%	0.06%	0.11%	0.00%	0.00%	0.01%

Frequently Asked Questions

Can I hold both SMH and TQQQ in my portfolio?

SMH and TQQQ have a correlation of 0.85, 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 TQQQ?

TQQQ has higher volatility (28.72%) compared to SMH (20.63%). In terms of maximum drawdown, SMH dropped -84.96% vs TQQQ's -81.66%.

Which ETF is better, SMH or TQQQ?

On 10-year performance, TQQQ leads with 44.63% vs 37.45% for SMH. On fees, SMH is cheaper at 0.35% per year. On volatility, SMH has been the lower-risk option at 20.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMH or TQQQ?

Over the 10-year period, TQQQ has performed better with a 44.63% return vs 37.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMH or TQQQ?

SMH is cheaper with a 0.35% expense ratio, compared with 0.95% for TQQQ.

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

TQQQ has the higher dividend yield at 0.49%, compared with 0.18% for SMH.

What is the main difference between SMH and TQQQ?

SMH is categorized as Semiconductors, while TQQQ is Leveraged Equities. SMH tracks MVIS US Listed Semiconductor 25 Index, while TQQQ tracks NASDAQ-100 Index (300%). They also come from different issuers: VanEck and ProShares. Their fees differ too: 0.35% for SMH and 0.95% for TQQQ.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (3.53 vs 1.72), 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.