QQQ vs SMH
Invesco QQQ Trust, Series 1 vs VanEck Semiconductor ETF
Which is better, QQQ or SMH?
SMH has been ahead.
QQQ has a lower expense ratio. SMH led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 47.2% of the fund in its ten largest positions against 71.4%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | SMH |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.35% |
| AUM | $498.6B | $74.1B |
| Dividend Yield | 0.42% | 0.20% |
| Holdings | 321 | 52 |
| YTD Return | +22.67% | +68.93%Best |
| 1Y Return | +24.33% | +87.02%Best |
| 3Y Return (annualized) | +29.05% | +64.79%Best |
| 5Y Return (annualized) | +17.00% | +39.13%Best |
| Volatility (annualized) | 22.4%Best | 31.4% |
| Max Drawdown | -80.5%Best | -85.5% |
| $10,000 over 5 years | $21,924 | $52,132Best |
| Top 10 Weight | 47.2%Best | 71.4% |
| Fund Family | Invesco (US) | VanEck |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Mar 10, 1999 | Dec 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: May 5, 2000 to Oct 2, 2026 (26.4 years).
QQQ vs SMH growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 26.4 years both funds cover.
QQQ vs SMH Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and VanEck Semiconductor ETF (SMH) is an ETF from VanEck. Over the past year QQQ returned +24.33% while SMH returned +87.02%. Year to date, QQQ is up 22.67% versus a gain of 68.93% for SMH.
Over three years, QQQ compounded at +29.05% per year against +64.79% for SMH; over five years the annualized figures are +17.00% and +39.13% respectively. Across the full 26-year window we track, SMH has the edge at +11.66% annualized vs +8.43%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMH has been the more volatile fund, with annualized monthly volatility of 31.4% compared with 22.4% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -80.5% for QQQ and -85.5% for SMH. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while SMH charges 0.35%. On a $10,000 position that is $18 vs $35 annually, a gap of $17 per year that compounds over a long holding period. On income, QQQ currently yields 0.42% against 0.20% for SMH.
Holdings Overlap
31.9% of QQQ's money is in holdings SMH also owns. 82.4% of SMH's money is in holdings QQQ also owns.
Most of SMH is already inside QQQ. Owning both mostly buys the same companies twice.
19 positions in common, counted across the 102 positions we hold weights for in QQQ and 25 in SMH, against full books of 321 and 52.
What only one of them owns
Our book lists 2 positions for SMH that do not appear in our book for QQQ (0.8% of the fund), and 77 for QQQ that do not appear in SMH (65.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in SMH | Difference |
|---|---|---|---|
| NVDANvidia Corp | 8.45% | 22.09% | 13.64% |
| MUMicron Technology, Inc. | 4.85% | 5.54% | 0.69% |
| AMDAdvanced Micro Devices Inc | 3.71% | 5.78% | 2.07% |
| AVGOBroadcom Inc | 2.74% | 5.83% | 3.09% |
| INTCIntel Corporation | 2.28% | 4.39% | 2.11% |
| LRCXLam Research Corp | 1.64% | 4.23% | 2.59% |
| AMATApplied Materials, Inc. | 1.60% | 4.19% | 2.59% |
| TXNTexas Instrument Inc | 1.08% | 4.35% | 3.27% |
| ADIAnalog Devices, Inc. | 0.82% | 4.40% | 3.58% |
| MRVLMarvell Technology Group Ltd. | 0.91% | 4.27% | 3.36% |
82.4% of SMH is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or SMH?
QQQ has an expense ratio of 0.18% while SMH charges 0.35%. QQQ is the cheaper option, by $17 a year on a $10,000 investment.
Which performed better, QQQ or SMH?
Over the past year QQQ returned +24.33% vs +87.02% for SMH, so SMH leads on 1-year performance. Over the longest common window we track (26 years), QQQ annualized +8.43% vs +11.66% for SMH. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or SMH?
SMH has been the more volatile fund at 31.4% annualized versus 22.4% for QQQ. Worst drawdown: QQQ -80.5% vs SMH -85.5%.
Should I hold both QQQ and SMH?
QQQ and SMH have a monthly-return correlation of 0.87, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQ and SMH?
82.4% of SMH's money is in holdings QQQ also owns. 82.4% of SMH's is in holdings QQQ also owns. They hold 19 positions in common, counted across the 102 positions we hold weights for in QQQ and 25 in SMH.
Which pays a higher dividend, QQQ or SMH?
QQQ yields 0.42% while SMH yields 0.20%, so QQQ currently pays the higher dividend yield.
Is SMH better than QQQ?
QQQ has a lower expense ratio. SMH led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 47.2% of the fund in its ten largest positions against 71.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.