ETF Versus

QQQ vs SMH

Invesco QQQ Trust vs VanEck Semiconductor ETF

Last updated: 2026-04-10

QQQ Invesco

Invesco QQQ Trust (QQQ) is an exchange-traded fund issued by Invesco that provides exposure to large-cap U.S. growth stocks with above-average earnings potential. It charges a moderate expense ratio of 0.18%. The fund offers a modest dividend yield of 0.46%. Launched in 1999, the fund has a 27-year track record.

AUM: $389.6B ER: 0.18% Yield: 0.46% Since: Mar 10, 1999
SMH VanEck

VanEck Semiconductor ETF (SMH) is an exchange-traded fund issued by VanEck that provides exposure to thematic - semiconductors securities. It charges an above-average expense ratio of 0.35%. The fund offers a modest dividend yield of 0.25%. Launched in 2011, the fund has a 15-year track record.

AUM: $46.4B ER: 0.35% Yield: 0.25% Since: Dec 20, 2011

Quick Verdict

QQQ is significantly cheaper at 0.18% vs 0.35% expense ratio, saving you approximately $332 per $10,000 invested over 10 years. Over the past year, SMH has significantly outperformed with a 123.2% return vs 37.0%.

Key Metrics

Metric QQQ SMH
Expense Ratio 0.18% 0.35%
Dividend Yield 0.5% 0.3%
Fund Family Invesco VanEck
Category US Large Cap Growth Thematic - Semiconductors

Performance Chart

Indexed to 100 at start (5-year comparison)

70 126 182 238 294 350 2021-04 2022-07 2023-10 2025-01 2026-04
QQQ +81.6%
SMH +246.1%

Performance Comparison

Period QQQ SMH Difference
1 Month +0.58% +9.22% -8.64%
3 Months -2.54% +12.12% -14.66%
6 Months +1.53% +28.92% -27.39%
YTD -0.31% +17.33% -17.64%
1 Year +36.99% +123.23% -86.24%
3 Years +93.53% +243.72% -150.19%
5 Years +81.55% +246.09% -164.54%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period QQQ Fees SMH Fees You Save
$10,000 10 years $357 $690 $332
$10,000 20 years $1,529 $2,930 $1,400
$10,000 30 years $4,912 $9,337 $4,425
$50,000 10 years $1,786 $3,448 $1,662
$50,000 30 years $24,558 $46,685 $22,127
$100,000 30 years $49,116 $93,370 $44,254

Risk Metrics

Based on 5 years of daily returns

Metric QQQ SMH
Annualized Volatility 22.4% 34.8%
Max Drawdown -35.6% -45.3%
Sharpe Ratio 0.45 0.76

Dividend Comparison

Metric QQQ SMH
Annual Dividend (per share) $2.81 $1.11
Dividend Yield 0.46% 0.25%
Distribution Frequency Quarterly Semi-Annual or Annual

Top Holdings

2 of top 9 holdings overlap (22% overlap in top holdings)

QQQ Top Holdings

NameWeight
NVIDIA CorporationNVDA8.69%
Apple Inc.AAPL7.47%
Microsoft CorporationMSFT5.55%
Amazon.com, Inc.AMZN4.61%
Tesla, Inc.TSLA3.47%
Meta Platforms, Inc.META3.41%
Alphabet Inc.GOOG3.32%
Walmart Inc.WMT3.32%
Broadcom Inc.AVGO3.18%

SMH Top Holdings

NameWeight
NVIDIA CorporationNVDA19.37%
Taiwan Semiconductor Manufacturing Company LimitedTSM11.59%
Broadcom Inc.AVGO7.67%
Advanced Micro Devices, Inc.AMD4.91%
Intel CorporationINTC4.83%
KLA CorporationKLAC4.80%
ASML Holding N.V.ASML4.77%
Analog Devices, Inc.ADI4.68%
Lam Research CorporationLRCX4.60%
Applied Materials, Inc.AMAT4.58%

Which One Should You Choose?

Choose QQQ if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose SMH if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Related Comparisons