QQQ vs SMHX
Invesco QQQ Trust, Series 1 vs VanEck Fabless Semiconductor ETF
Quick Verdict
QQQ has a lower expense ratio. SMHX delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | SMHX | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $496.3B | $232M | |
| Dividend Yield | 0.44% | 0.02% | |
| Holdings | 108 | 24 | |
| YTD Return | +15.47% | +37.59% | |
| 1Y Return | +24.44% | +53.14% | |
| 3Y Return (annualized) | +25.47% | - | |
| 5Y Return (annualized) | +14.22% | - | |
| Volatility (annualized) | 30.6% | 38.1% | |
| Max Drawdown | -83.0% | -38.5% | |
| Fund Family | Invesco (US) | VanEck | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Aug 27, 2024 |
QQQ vs SMHX Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and VanEck Fabless Semiconductor ETF (SMHX) is a ETF from VanEck. Over the past year QQQ returned +24.44% while SMHX returned +53.14%. Year to date, QQQ is up 15.47% versus a gain of 37.59% for SMHX.
Risk: Volatility and Drawdowns
SMHX has been the more volatile fund, with annualized monthly volatility of 38.1% compared with 30.6% 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 -83.0% for QQQ and -38.5% for SMHX. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QQQ charges 0.18% per year while SMHX 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 0.44% against 0.02% for SMHX.
Holdings Overlap
QQQ and SMHX share 10 holdings out of 114 unique holdings combined, representing a 18.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or SMHX?
QQQ has an expense ratio of 0.18% while SMHX charges 0.35%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, QQQ or SMHX?
Over the past year QQQ returned +24.44% vs +53.14% for SMHX, so SMHX leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +12.99% vs +47.50% for SMHX. Past performance does not guarantee future results.
Which is riskier, QQQ or SMHX?
SMHX has been the more volatile fund at 38.1% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs SMHX -38.5%.
Should I hold both QQQ and SMHX?
QQQ and SMHX have a monthly-return correlation of 0.94, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between QQQ and SMHX?
QQQ and SMHX share 10 common holdings with a 18.4% weight overlap. Combined, they hold 114 unique securities.
Which pays a higher dividend, QQQ or SMHX?
QQQ yields 0.44% while SMHX yields 0.02%, so QQQ currently pays the higher dividend yield.
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