ETF Comparison
SMH vs QQQ: Which Is the Better Pick in 2026?
A head-to-head comparison of VanEck Semiconductor ETF and Invesco QQQ Trust covering yield, cost, risk, and income potential.
Data updated April 5, 2026
Side-by-side snapshot
| SMH | QQQ | |
|---|---|---|
| Full name | VanEck Semiconductor ETF | Invesco QQQ Trust |
| Issuer | VanEck | Invesco |
| Price | $391.97 | $584.31 |
| Distribution yield | 0.27% | 0.46% |
| Expense ratio | 0.35% | 0.18% |
| AUM | $46.2B | $395.0B |
| Distribution frequency | Quarterly | Quarterly |
| Underlying index | MVIS US Listed Semiconductor 25 Index | Nasdaq-100 Index |
| Objective | Track the MVIS US Listed Semiconductor 25 Index. | Track the Nasdaq-100 Index, which includes 100 of the largest non-financial Nasdaq stocks. |
| Asset class | Equity | Equity |
| Inception date | 12/20/2011 | 03/10/1999 |
| Beta | 1.67 | 1.15 |
| Last dividend | $1.10 | $0.73 |
| Ex-dividend date | 12/22/2025 | 03/23/2026 |
Visual comparison
Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
Quick verdict
SMH (VanEck Semiconductor ETF) and QQQ (Invesco QQQ Trust) are both popular quarterly-pay track the mvis us listed semiconductor 25 index. ETFs, but they take different approaches.
QQQ offers the higher yield at 0.46% vs 0.27% 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 track different benchmarks: SMH is linked to MVIS US Listed Semiconductor 25 Index while QQQ tracks Nasdaq-100 Index, which means their performance drivers differ.
QQQ is the larger fund by assets ($395.0B), which generally means tighter spreads and better liquidity.
Deep dive
Yield & income
On a $10,000 investment, SMH would generate roughly $2.25/month while QQQ would produce $3.83/month at current distribution rates. Both pay quarterly distributions.
Cost & efficiency
Over 10 years on $10,000, SMH would cost approximately $350 in fees vs $180 for QQQ (simplified, not compounded). The $170.00 difference may be offset by yield or performance.
Strategy & risk
SMH tracks MVIS US Listed Semiconductor 25 Index with a track the mvis us listed semiconductor 25 index. approach, while QQQ tracks Nasdaq-100 Index using a track the nasdaq-100 index, which includes 100 of the largest non-financial nasdaq stocks. strategy. Beta is 1.67 for SMH and 1.15 for QQQ, indicating QQQ is less volatile relative to the market.
Fund details
SMH is managed by VanEck (launched 12/20/2011) with $46.2B in assets. QQQ is managed by Invesco (launched 03/10/1999) with $395.0B in assets.
Income calculator
See how much monthly income a hypothetical investment would generate in each ETF at current yields.
Frequently asked questions
Is SMH or QQQ 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.
What is the difference between SMH and QQQ?
SMH (VanEck Semiconductor ETF) tracks MVIS US Listed Semiconductor 25 Index with a track the mvis us listed semiconductor 25 index. strategy, while QQQ (Invesco QQQ Trust) tracks Nasdaq-100 Index with a track the nasdaq-100 index, which includes 100 of the largest non-financial nasdaq stocks. approach. They are issued by VanEck and Invesco respectively.
Can I hold both SMH and QQQ?
Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.
Which has lower fees, SMH or QQQ?
SMH has an expense ratio of 0.35% while QQQ charges 0.18%. Lower fees mean more of your investment returns stay in your pocket over time.
How much income does $10,000 in SMH vs QQQ generate?
At current yields, $10,000 in SMH would generate roughly $2.25 per month ($27.00 annually). The same in QQQ would produce about $3.83 per month ($46.00 annually).
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