XDSQ vs. SMH

Last updated Jun 6, 2026

XDSQ (Innovator US Equity Accelerated ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - XDSQ is a Leveraged Equities fund actively managed by Innovator, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. XDSQ is actively managed, while SMH is passively managed. Over the past 5 years, XDSQ returned 9.75%/yr vs 36.10%/yr for SMH. A 0.74 correlation means they provide meaningful diversification when combined. XDSQ charges 0.79%/yr vs 0.35%/yr for SMH.

Performance

XDSQ vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Innovator US Equity Accelerated ETF (XDSQ) 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, XDSQ achieves a 2.52% return, which is significantly lower than SMH's 58.19% return.

XDSQ

• 1D: -0.30%
• 1M: 0.76%
• YTD: 2.52%
• 6M: 3.33%
• 1Y: 16.01%
• 3Y*: 14.85%
• 5Y*: 9.75%
• 10Y*: —

SMH

• 1D: -9.22%
• 1M: 3.63%
• YTD: 58.19%
• 6M: 56.81%
• 1Y: 127.40%
• 3Y*: 58.39%
• 5Y*: 36.10%
• 10Y*: 36.02%

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

XDSQ vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
XDSQ Innovator US Equity Accelerated ETF	2.52%	14.22%	23.12%	23.00%	-16.78%	12.75%
SMH VanEck Semiconductor ETF	58.19%	49.17%	39.10%	73.38%	-33.53%	22.73%

Correlation

The correlation between XDSQ and SMH is 0.66, 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	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (All Time) Calculated using the full available price history since Apr 5, 2021	0.74

The correlation between XDSQ and SMH has been stable across timeframes, ranging from 0.66 to 0.74 - a consistent structural relationship.

XDSQ vs. SMH - Sectors Allocation Comparison

Sectors	XDSQ	SMH
Technology	35.7%	100.0%
Financial Services	11.6%	-
Communication Services	11.3%	-
Consumer Cyclical	10.2%	-
Healthcare	8.5%	-
Industrials	8.3%	-
Consumer Defensive	4.9%	-
Energy	3.5%	-
Utilities	2.4%	-
Real Estate	1.9%	-
Basic Materials	1.8%	-

Return for Risk

XDSQ vs. SMH — Risk / Return Rank

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

XDSQ

XDSQ Risk / Return Rank: 46
XDSQ Sharpe Ratio Rank: 46
XDSQ Sortino Ratio Rank: 44
XDSQ Omega Ratio Rank: 54
XDSQ Calmar Ratio Rank: 35
XDSQ Martin Ratio Rank: 51

SMH

SMH Risk / Return Rank: 94
SMH Sharpe Ratio Rank: 96
SMH Sortino Ratio Rank: 90
SMH Omega Ratio Rank: 92
SMH Calmar Ratio Rank: 96
SMH Martin Ratio Rank: 95

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.

XDSQ vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovator US Equity Accelerated ETF (XDSQ) 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.

	XDSQ	SMH	Difference
Sharpe ratio: Return per unit of total volatility	1.53	4.00	-2.48
Sortino ratio: Return per unit of downside risk	2.10	4.12	-2.03
Omega ratio: Gain probability vs. loss probability	1.32	1.59	-0.27
Calmar ratio: Return relative to maximum drawdown	1.68	8.58	-6.91
Martin ratio: Return relative to average drawdown	7.99	32.42	-24.43
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XDSQ vs. SMH - Sharpe Ratio Comparison

The current XDSQ Sharpe Ratio is 1.53, which is lower than the SMH Sharpe Ratio of 4.00. The chart below compares the historical Sharpe Ratios of XDSQ 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

	XDSQ	SMH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.53	4.00	-2.48
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.64	1.03	-0.39
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.11	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.69	0.32	+0.36

Drawdowns

XDSQ vs. SMH - Drawdown Comparison

The maximum XDSQ drawdown since its inception was -26.06%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for XDSQ and SMH.

Drawdown Indicators

	XDSQ	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-26.06%	-84.96%	+58.90%
Max Drawdown (1Y) Largest decline over 1 year	-9.60%	-14.93%	+5.33%
Max Drawdown (3Y) Largest decline over 3 years	-19.15%	-35.74%	+16.59%
Max Drawdown (5Y) Largest decline over 5 years	-26.06%	-45.30%	+19.24%
Max Drawdown (10Y) Largest decline over 10 years	—	-45.30%	—
Current Drawdown Current decline from peak	-0.30%	-10.69%	+10.39%
Average Drawdown Average peak-to-trough decline	-4.96%	-41.08%	+36.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.01%	3.94%	-1.93%

Volatility

XDSQ vs. SMH - Volatility Comparison

The current volatility for Innovator US Equity Accelerated ETF (XDSQ) is 0.60%, while VanEck Semiconductor ETF (SMH) has a volatility of 14.88%. This indicates that XDSQ 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

	XDSQ	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.60%	14.88%	-14.28%
Volatility (6M) Calculated over the trailing 6-month period	8.39%	26.35%	-17.96%
Volatility (1Y) Calculated over the trailing 1-year period	10.55%	32.03%	-21.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.27%	35.24%	-19.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.09%	32.70%	-17.61%

XDSQ vs. SMH - Expense Ratio Comparison

XDSQ has a 0.79% expense ratio, which is higher than SMH's 0.35% expense ratio.

Dividends

XDSQ vs. SMH - Dividend Comparison

XDSQ has not paid dividends to shareholders, while SMH's dividend yield for the trailing twelve months is around 0.19%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SMH VanEck Semiconductor ETF	0.19%	0.31%	0.44%	0.60%	1.18%	0.51%	0.69%	1.50%	1.88%	1.43%	0.80%	2.14%
XDSQ Innovator US Equity Accelerated ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XDSQ and SMH in my portfolio?

XDSQ and SMH have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XDSQ or SMH?

SMH has higher volatility (14.88%) compared to XDSQ (0.60%). In terms of maximum drawdown, XDSQ dropped -26.06% vs SMH's -84.96%.

Which ETF is better, XDSQ or SMH?

On 5-year performance, SMH leads with 36.10% vs 9.75% for XDSQ. On fees, SMH is cheaper at 0.35% per year. On volatility, XDSQ has been the lower-risk option at 0.60%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XDSQ or SMH?

Over the 5-year period, SMH has performed better with a 36.10% return vs 9.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XDSQ or SMH?

SMH is cheaper with a 0.35% expense ratio, compared with 0.79% for XDSQ.

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

SMH has the higher dividend yield at 0.19%, compared with 0.00% for XDSQ.

What is the main difference between XDSQ and SMH?

XDSQ is categorized as Leveraged Equities, while SMH is Semiconductors. They also come from different issuers: Innovator and VanEck. Their fees differ too: 0.79% for XDSQ and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (4.00 vs 1.53), 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.