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ETF Comparison

QQQ vs SMH: Does QQQ Already Own the Chips?

A head-to-head of the Invesco QQQ Trust and VanEck's Semiconductor ETF covering how much chip exposure QQQ already has, cost, and overlap.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

  • QQQInvestors who want a growth tilt and can accept bigger swings for higher upside.
  • SMHInvestors who want broad equity exposure.

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

QQQ has lagged SMH over the trailing twelve months, posting a 24.84% total return against 89.57%. The lead holds up over 10 years too: SMH has compounded at 35.00% a year, against 21.10% for QQQ. QQQ has been the steadier holding, though — annualized volatility of 20.4% against 37.0% for SMH. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince May 2000Volatility Sharpe Sortino Max drawdown
QQQ22.67%24.84%28.26%16.47%21.10%9.00%20.4%1.011.46-22.8%
SMH68.93%89.57%63.49%38.33%35.00%13.39%37.0%1.211.73-35.7%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since May 2000” measures every fund from May 5, 2000 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricQQQSMH
Full nameInvesco QQQ TrustVanEck Semiconductor ETF
IssuerInvescoVanEck
Underlying indexNasdaq-100 IndexMVIS US Listed Semiconductor 25 Index
Last Close$749.58 as of October 2, 2026$630.60 as of October 2, 2026
Distribution rate0.40%0.18%
Trailing 12-month yield0.41%0.18%
Distribution Safety Score™ 9779
Safety-Adjusted Yield 0.39%0.14%
Expense ratio0.18%0.35%
AUM$501B$74.6B
Distribution frequencyQuarterlyAnnual
ObjectiveTrack the Nasdaq-100 Index, which includes 100 of the largest non-financial Nasdaq stocks.Track the MVIS US Listed Semiconductor 25 Index.
Asset classEquityEquity
Inception date03/10/199912/20/2011
Beta1.262.06
Last dividend$0.75143 declared, pays 10/08/2026$1.105
Ex-dividend date09/21/202612/22/2025

Bottom lineChoose QQQ if you want a growth tilt and can accept bigger swings for higher upside. Choose SMH if you want broad equity exposure.

QQQ vs SMH: Nasdaq-100 or a chip sleeve?

QQQ already includes many semiconductor names. SMH concentrates there. Breadth versus a pure chip bet is the decision.

QQQSMH
What it ownsNasdaq-100 IndexMVIS US Listed Semiconductor 25 Index
Expense ratio0.18%0.35%
Distribution rate0.40%0.18%
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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Invesco
ETFs246
Total AUM$1012B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Invesco is a major ETF provider known for offering a comprehensive lineup spanning multiple asset classes and investment strategies. The company specializes in income-focused products including dividend, covered call, and bond strategies, while also maintaining broad exposure across equity, factor-based, thematic, and ESG investing themes. Invesco's portfolio ranges from index-tracking funds to alternatives and specialized offerings like digital assets and BulletShares, making it one of the more expansive ETF families available to investors.

See our curated list of related YouTube videos on QQQ.

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VanEck
ETFs85
Total AUM$171B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

VanEck is known for offering specialized and thematic ETFs across diverse asset classes, including commodities, digital assets, and sector-specific investments. The firm's 22-fund lineup spans income-generating options, covered call strategies, and growth-focused equity funds, with popular tickers including GDX (gold miners), SMH (semiconductors), MOAT (competitive advantage stocks), and HODL (bitcoin). VanEck distinguishes itself through niche exposure areas such as digital assets, commodities, and thematic investing strategies, complemented by traditional bond and municipal bond offerings.

See our curated list of related YouTube videos on SMH.

See all VanEck ETFs

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Quick verdict

QQQ (Invesco QQQ Trust) and SMH (VanEck Semiconductor ETF) are both dividend ETFs, but they take different approaches.

QQQ offers the higher yield at 0.40% vs 0.18% for SMH. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

QQQ is cheaper with an expense ratio of 0.18% compared to 0.35%.

They have different reference exposures: QQQ is linked to Nasdaq-100 Index while SMH is linked to MVIS US Listed Semiconductor 25 Index, which means their performance drivers differ.

QQQ is the larger fund by assets ($501B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, QQQ would generate roughly $10.00 cash per distribution, while SMH would produce $18.00 cash per distribution, at current distribution rates.

QQQ yield0.40%
SMH yield0.18%
Cash diff on $10K$8.00

Cost & efficiency

Over 10 years on $10,000, QQQ would cost approximately $180 in fees vs $350 for SMH (simplified, not compounded). The $170.00 difference may be offset by yield or performance.

QQQ ER0.18%
SMH ER0.35%

Strategy & risk

QQQ tracks Nasdaq-100 Index with a growth approach, while SMH tracks MVIS US Listed Semiconductor 25 Index with a technology approach. Beta is 1.26 for QQQ and 2.06 for SMH, making QQQ the less volatile of the two by this measure.

QQQ beta1.26
SMH beta2.06

Fund details

QQQ is managed by Invesco (launched 03/10/1999) with $501B in assets. SMH is managed by VanEck (launched 12/20/2011) with $74.6B in assets.

QQQ AUM$501B
SMH AUM$74.6B
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Frequently asked questions

What is the difference between QQQ and SMH?

QQQ (Invesco QQQ Trust) tracks the Nasdaq-100, which already includes many semiconductor names. SMH (VanEck Semiconductor ETF) concentrates in MVIS US Listed Semiconductor 25 Index. Holding both doubles chip names already inside QQQ. Cost is 0.18% versus 0.35%; distributions are 0.40% and 0.18% as of October 2026. Breadth versus a pure chip bet is the decision.

What is the current distribution rate for QQQ and SMH?

QQQ currently distributes 0.40% and SMH 0.18%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is QQQ or SMH better for dividend income?

It depends on your goals. QQQ currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

Can I hold both QQQ and SMH?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is QQQ or SMH safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — QQQ scores 97, SMH scores 79, so QQQ's payout currently looks the more resilient of the two. QQQ has also shown lower price volatility (beta 1.26 vs 2.06 for SMH). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, QQQ or SMH?

QQQ has an expense ratio of 0.18% while SMH charges 0.35%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in QQQ vs SMH generate?

At current rates, $10,000 in QQQ would generate roughly $10.00 cash per distribution ($40.00 annually). The same in SMH would produce about $18.00 cash per distribution ($18.00 annually).

Which has performed better historically, QQQ or SMH?

QQQ has lagged SMH over the trailing twelve months, posting a 24.84% total return against 89.57%. The lead holds up over 10 years too: SMH has compounded at 35.00% a year, against 21.10% for QQQ. QQQ has been the steadier holding, though — annualized volatility of 20.4% against 37.0% for SMH. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

QQQ vs SMH — at a glance

Generated October 3, 2026.

Overview

QQQ and SMH are both growth-focused ETFs tracking specialized technology-heavy indexes, but they occupy very different slices of the tech market. QQQ tracks the Nasdaq-100—a broad index of the 100 largest non-financial Nasdaq stocks, which includes software, semiconductors, hardware, and services companies. SMH, by contrast, tracks the MVIS US Listed Semiconductor 25 Index, concentrating on 25 pure-play semiconductor and semiconductor equipment manufacturers. The key distinction is breadth versus focus: QQQ holds Apple, Microsoft, Tesla, and Netflix alongside its semiconductor holdings, while SMH is a concentrated sector bet on chip design, manufacturing, and equipment suppliers.

How they differ

The single biggest difference is their investment scope. QQQ's $501B in assets buys exposure to 100 of the largest Nasdaq stocks across multiple industries, while SMH's $74.6B focuses exclusively on semiconductors, making it a sector-specific play rather than a diversified tech bet.

Second, SMH carries roughly twice the volatility. SMH's beta of 2.06 means it tends to amplify broad market moves by about double; QQQ's beta of 1.26 still exceeds the overall market but offers substantially less swing. QQQ also has a lower expense ratio at 0.18% versus SMH's 0.17% basis points higher.

Who each is best for

QQQ: Fits investors seeking diversified exposure to large-cap growth technology and innovation-driven companies, with comfort tolerating market-beta volatility but preference for broad sector coverage over concentrated bets.

SMH: Designed for investors with a specific conviction in semiconductor industry tailwinds—supply recovery, AI-driven demand, advanced manufacturing capacity—who are willing to accept concentrated sector risk and higher price swings for focused upside.

Key risks to know

  • Concentration and cyclicality in SMH. Semiconductors are capital-intensive, cyclical, and subject to rapid shifts in supply-demand balance and geopolitical exposure (Taiwan manufacturing risk, China trade policy). A downturn in chip demand or capex cycles hits SMH much harder than the diversified QQQ.
  • Significant volatility differential. SMH's 2.06 beta versus QQQ's 1.26 means drawdowns in risk-off environments will be sharper and longer in SMH, a real consideration for investors with lower risk tolerance or shorter time horizons.
  • Sector overlap and correlated risk. While QQQ holds a broad base, a meaningful portion of its holdings are semiconductor and semiconductor equipment companies. A industry-wide chip downturn affects both, but SMH's concentrated exposure amplifies the impact.
  • Performance divergence in non-semiconductor growth periods. If market leadership rotates away from semiconductors into healthcare, financials, or other sectors where QQQ has exposure but SMH does not, their returns will diverge significantly. QQQ's diversification is a hedge; SMH's focus is not.

Bottom line

If you want diversified exposure to mega-cap tech and growth innovation with lower volatility, QQQ's broad base and modest fees deliver that. If you have a specific thesis on semiconductor demand and can tolerate roughly double the market's downside swings, SMH offers concentrated sector upside—but verify that chip-specific tailwinds justify the added volatility and single-sector risk. Past performance in either fund does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

Dividend growth vs. high yield Yield on cost, explained How expense ratios eat returns

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These comparisons follow the Dividend Vision methodology.