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Dividend Vision

ETF Comparison

QQQ vs SMH vs XLK: The Nasdaq-100, Semiconductors, or the Tech Sector?

A side-by-side of Invesco QQQ Trust, VanEck Semiconductor, and Technology Select Sector SPDR covering breadth and overlap.

Updated September 30, 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.
  • XLKInvestors 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.

SMH tops the group over the trailing twelve months with a 89.33% total return, against QQQ at 24.14% and XLK at 40.37%. Across the 10-year window, SMH has the strongest compounding at 34.62% a year. 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
QQQ21.07%24.14%27.75%16.22%21.00%8.94%20.4%0.991.43-22.8%
SMH63.14%89.33%61.74%37.36%34.62%13.25%37.1%1.181.68-35.7%
XLK36.14%40.37%34.09%21.97%24.74%9.06%25.1%1.001.43-25.7%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 30, 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.
MetricQQQSMHXLK
Full nameInvesco QQQ TrustVanEck Semiconductor ETFState Street Technology Select Sector SPDR ETF
IssuerInvescoVanEckState Street
Underlying indexNasdaq-100 IndexMVIS US Listed Semiconductor 25 IndexTechnology Select Sector Index
Last Close$739.77 as of September 30, 2026$609.00 as of September 30, 2026$195.75 as of September 30, 2026
Distribution rate0.41%0.18%0.45%
Trailing 12-month yield0.42%0.18%0.43%
Distribution Safety Score™ 977999
Safety-Adjusted Yield 0.40%0.14%0.45%
Expense ratio0.18%0.35%0.08%
AUM$501B$74.6B$128B
Distribution frequencyQuarterlyAnnualQuarterly
ObjectiveTrack the Nasdaq-100 Index, which includes 100 of the largest non-financial Nasdaq stocks.Track the MVIS US Listed Semiconductor 25 Index.Track the Technology Select Sector Index, providing exposure to the information technology constituents of the S&P 500.
Asset classEquityEquityEquity
Inception date03/10/199912/20/201112/16/1998
Beta1.262.061.5
Last dividend$0.75143 declared, pays 10/08/2026$1.105$0.221
Ex-dividend date09/21/202612/22/202509/21/2026
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Invesco
ETFs246
Total AUM$1013B

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.

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State Street
ETFs179
Total AUM$2148B

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

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on XLK.

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Quick verdict

QQQ (Invesco QQQ Trust), SMH (VanEck Semiconductor ETF), XLK (State Street Technology Select Sector SPDR ETF) are dividend ETFs that take different approaches.

XLK offers the highest reported yield at 0.45%, followed by QQQ at 0.41%, SMH at 0.18%.

XLK is the cheapest with an expense ratio of 0.08%, compared to 0.18% for QQQ and 0.35% for SMH.

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

Deep dive

Yield & income

On a $10,000 investment: QQQ generates ~$10.25 cash per distribution, SMH generates ~$18.00 cash per distribution, XLK generates ~$11.25 cash per distribution at current distribution rates.

QQQ yield0.41%
SMH yield0.18%
XLK yield0.45%

Cost & efficiency

Over 10 years on $10,000: QQQ costs ~$180, SMH costs ~$350, XLK costs ~$80 in fees (simplified, not compounded).

QQQ ER0.18%
SMH ER0.35%
XLK ER0.08%

Strategy & risk

QQQ tracks Nasdaq-100 Index with a growth approach; SMH tracks MVIS US Listed Semiconductor 25 Index with a technology approach; XLK tracks Technology Select Sector Index with a technology approach.

QQQ beta1.26
SMH beta2.06
XLK beta1.5

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. XLK is managed by State Street (launched 12/16/1998) with $128B in assets.

QQQ AUM$501B
SMH AUM$74.6B
XLK AUM$128B
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Frequently asked questions

What is the difference between QQQ, SMH, and XLK?

Breadth. Invesco QQQ Trust tracks the Nasdaq-100 Index — the largest non-financial Nasdaq listings, which is technology-heavy but also holds consumer and healthcare names. State Street Technology Select Sector SPDR ETF tracks the Technology Select Sector Index, so it is the technology slice of the S&P 500 and nothing else. VanEck Semiconductor ETF tracks the MVIS US Listed Semiconductor 25 Index, a short list of semiconductor companies — the narrowest of the three. Cost is 0.18%, 0.35%, and 0.08%; distributions as of September 2026 are 0.41%, 0.18%, and 0.45%, paid quarterly, annual, and quarterly.

Is SMH riskier than QQQ or XLK?

It moves more. Beta measures how much a fund has swung against the broad market, and here it reads 2.06 for VanEck Semiconductor ETF, 1.5 for State Street Technology Select Sector SPDR ETF, and 1.26 for Invesco QQQ Trust. That ordering follows the breadth: a couple of dozen semiconductor makers in one cyclical industry concentrate both the gains and the drawdowns, while the Nasdaq-100 spreads them over a hundred companies. The largest chipmakers sit near the top of all three, so owning them together concentrates that exposure rather than spreading it.

Which of QQQ, SMH, XLK is best for dividend income?

It depends on your goals. XLK currently offers the highest reported distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility, and funds without an established distribution history have no comparable yield to evaluate. Consider your time horizon and risk tolerance.

Can I hold QQQ, SMH, XLK together?

Yes — nothing prevents holding them together. 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.

Which of QQQ, SMH and XLK is safest?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: XLK scores 99, QQQ scores 97, SMH scores 79. Neither has a clear safety edge on that measure. 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 the lowest fees among QQQ, SMH, XLK?

QQQ has an expense ratio of 0.18%, SMH has an expense ratio of 0.35%, XLK has an expense ratio of 0.08%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 generate in each?

$10,000 in QQQ yields ~$10.25 cash per distribution ($41.00/year). $10,000 in SMH yields ~$18.00 cash per distribution ($18.00/year). $10,000 in XLK yields ~$11.25 cash per distribution ($45.00/year).

More comparisons to explore

QQQ vs SMH vs XLK — at a glance

Generated September 26, 2026.

Overview

These three ETFs all track tech-heavy indexes but with significantly different scope and concentration. QQQ mirrors the 100 largest non-financial Nasdaq stocks, XLK captures the S&P 500's technology sector, and SMH focuses exclusively on semiconductor companies. The key distinction is breadth: QQQ and XLK are broad tech exposures with major overlap in their largest holdings, while SMH is a concentrated play on a single subsector.

How they differ

The biggest structural difference is concentration. SMH holds just 25 semiconductor companies, while QQQ covers 100 large-cap tech and non-tech Nasdaq names, and XLK includes the S&P 500's entire tech sector—roughly 70 stocks. That concentration shows up in SMH's 2.06 beta versus QQQ's 1.26 and XLK's 1.5, making semiconductors the most volatile of the three.

On yield, XLK leads at 0.45%, followed by QQQ at 0.41%, while SMH trails at 0.18%—typical for a pure-growth subsector with lower dividend payout culture. Expense ratios are tight across the board, but XLK is cheapest at 0.08%, versus 0.18% for QQQ and 0.35% for SMH. Finally, asset base differs sharply: QQQ dominates at $501B, XLK sits at $128B, and SMH is smaller at $74.6B.

Who each is best for

QQQ: Investors seeking the broadest pure-Nasdaq growth exposure without the constraints of S&P 500 membership—captures mega-cap tech plus large non-financial names like Tesla, Amazon, and China-listed ADRs that don't qualify for XLK.

XLK: Fits those who want tech sector exposure anchored to the S&P 500's largest and most-established tech names—a more conservative tech play with higher dividend yield and lower volatility than SMH.

SMH: Designed for tactical allocators with a specific conviction in semiconductor cycles or those seeking the highest growth leverage within technology—the concentration makes it suitable only for investors with high risk tolerance and a meaningful time horizon.

Key risks to know

  • Concentration risk in SMH: A 25-stock portfolio means single-company performance and supply-chain disruptions carry outsized weight; the subsector's sensitivity to chip cycles amplifies this volatility relative to QQQ and XLK.
  • Nasdaq-100 overlap in QQQ: The ETF includes non-S&P 500 names and concentrates heavily in mega-cap tech; if the largest Nasdaq names underperform, QQQ has fewer diversifiers than XLK, which spans all S&P 500 tech constituents.
  • Semiconductor cyclicality: SMH's beta of 2.06 reflects earnings volatility tied to capex spending, inventory cycles, and end-market demand swings—these can compress valuations sharply during downturns.
  • Low dividend cushion across all three: None offers substantial yield to offset drawdowns; XLK's 0.45% is the highest, meaning capital appreciation drives returns, and extended periods of tech underperformance leave little income to reinvest.
  • Duration and multiple sensitivity: All three are equity growth funds with minimal fixed-income ballast; rising rates or multiple compression can stress valuations more sharply than in value or dividend-focused equity ETFs.

Bottom line

If you want the broadest tech-adjacent Nasdaq exposure, QQQ's $501B asset base and 0.18% fee are hard to beat; if you prefer established tech within the S&P 500 and higher yield, XLK's 0.08% fee and 0.45% distribution rate make a cleaner case. If you're tilting toward semiconductors and can tolerate 2.06 beta, SMH offers pure subsector exposure—but that concentration comes at the cost of stability. Past performance does not predict future results, and each fund's returns depend on whether its underlying index constituents outperform or lag the broader market.

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

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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.