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ETF Comparison

QQQ vs SOXX: Which Is the Better Pick in 2026?

A head-to-head comparison of Invesco QQQ Trust and iShares Semiconductor ETF covering yield, cost, risk, and income potential.

Data updated July 4, 2026

ETFs255
Total AUM$971B

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

Invesco is a major player in the ETF space known for offering a broad, diversified lineup of 71 funds spanning multiple investment themes and strategies. Their portfolio spans income-focused funds, factor-based equity strategies, commodity exposure, digital assets, ESG investing, and the popular Invesco QQQ family tracking the Nasdaq-100, serving both income-seeking and growth-oriented investors. The issuer is particularly recognized for specialized offerings like BulletShares (laddered bond funds), sector rotation strategies, and thematic investing options, making it a comprehensive choice for investors seeking varied exposures beyond traditional index funds.

See our curated list of related YouTube videos on QQQ.

ETFs481
Total AUM$4451B

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

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

See our curated list of related YouTube videos on SOXX.

Side-by-side snapshot

QQQSOXX
Full nameInvesco QQQ TrustiShares Semiconductor ETF
IssuerInvescoiShares
Last Close$712.60 as of July 4, 2026$566.32 as of July 4, 2026
Distribution yield0.45%0.20%
Distribution Safety Score9596
Expense ratio0.18%0.35%
AUM$481B$36.9B
Distribution frequencyQuarterlyQuarterly
Underlying indexNasdaq-100 IndexICE Semiconductor Index
ObjectiveTrack the Nasdaq-100 Index, which includes 100 of the largest non-financial Nasdaq stocks.Tracks the ICE Semiconductor Index of US-listed semiconductor companies.
Asset classEquityEquity
Inception date03/10/199907/10/2001
Beta1.232.26
Last dividend$0.7941$0.2830
Ex-dividend date12/21/202609/15/2026

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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

QQQ has lagged SOXX over the trailing twelve months, posting a 30.76% total return against 139.44%. The lead holds up over 10 years too: SOXX has compounded at 35.04% a year, against 21.60% for QQQ. QQQ has been the steadier holding, though — annualized volatility of 20.2% against 38.2% for SOXX. Figures are total returns: price change plus every distribution reinvested.

SymbolYTD1Y3Y5Y10YSince Jul 2001Volatility Sharpe Sortino Max drawdown
QQQ16.37%30.76%25.08%15.64%21.60%12.64%20.2%0.891.27-22.8%
SOXX80.73%139.44%50.21%31.60%35.04%14.38%38.2%0.951.35-41.4%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jul 2001” measures every fund from July 13, 2001 — the youngest fund's first trading day — 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.

Quick verdict

QQQ (Invesco QQQ Trust) and SOXX (iShares Semiconductor ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

QQQ offers the higher yield at 0.45% vs 0.20% for SOXX. 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: QQQ is linked to Nasdaq-100 Index while SOXX tracks ICE Semiconductor Index, which means their performance drivers differ.

QQQ is the larger fund by assets ($481B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, QQQ would generate roughly $3.75/month, while SOXX would produce $1.67/month, at current distribution rates. Both pay quarterly distributions.

QQQ yield0.45%
SOXX yield0.20%
Monthly diff on $10K$2.08

Cost & efficiency

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

QQQ ER0.18%
SOXX ER0.35%

Strategy & risk

QQQ tracks Nasdaq-100 Index with a growth approach, while SOXX tracks ICE Semiconductor Index with a basket approach. Beta is 1.23 for QQQ and 2.26 for SOXX, indicating QQQ is less volatile relative to the market.

QQQ beta1.23
SOXX beta2.26

Fund details

QQQ is managed by Invesco (launched 03/10/1999) with $481B in assets. SOXX is managed by iShares (launched 07/10/2001) with $36.9B in assets.

QQQ AUM$481B
SOXX AUM$36.9B

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Frequently asked questions

Is QQQ or SOXX 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 QQQ and SOXX?

QQQ (Invesco QQQ Trust) tracks Nasdaq-100 Index with a growth approach, while SOXX (iShares Semiconductor ETF) tracks ICE Semiconductor Index with a basket approach. They are issued by Invesco and iShares respectively.

Can I hold both QQQ and SOXX?

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, QQQ or SOXX?

QQQ has an expense ratio of 0.18% while SOXX 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 SOXX generate?

At current rates, $10,000 in QQQ would generate roughly $3.75 per month ($45.00 annually). The same in SOXX would produce about $1.67 per month ($20.00 annually).

Which has performed better historically, QQQ or SOXX?

QQQ has lagged SOXX over the trailing twelve months, posting a 30.76% total return against 139.44%. The lead holds up over 10 years too: SOXX has compounded at 35.04% a year, against 21.60% for QQQ. QQQ has been the steadier holding, though — annualized volatility of 20.2% against 38.2% for SOXX. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

QQQ vs SOXX — at a glance

Generated June 2026 from current fund data.

Overview

QQQ tracks the Nasdaq-100 Index, a broad basket of 100 large non-financial Nasdaq stocks weighted by market cap, while SOXX targets the ICE Semiconductor Index, a concentrated sector play on US-listed chip companies. QQQ offers diversified exposure across tech, consumer, and healthcare; SOXX isolates semiconductor manufacturing and design. The funds differ fundamentally in breadth—one covers a tech-heavy mega-cap index, the other narrows to a single industry subsector.

How they differ

QQQ's biggest structural advantage is diversification: it holds 100 companies across multiple sectors, whereas SOXX concentrates on semiconductors alone. This shows up in beta: QQQ has a beta of 1.23, while SOXX's beta is 2.26, reflecting SOXX's higher sensitivity to market swings and sector-specific volatility. On income, QQQ yields 0.44% versus SOXX's 0.18%, though both pay quarterly. QQQ costs 0.18% annually to hold; SOXX charges 0.35%, nearly double. QQQ's $481B in assets dwarfs SOXX's $36.9B, meaning QQQ offers tighter bid-ask spreads and deeper liquidity.

Who each is best for

QQQ: Fits investors seeking broad exposure to mega-cap tech and growth stocks with lower volatility than a pure semiconductor bet and minimal annual drag from fees.

SOXX: Fits investors who believe semiconductors will outpace the broader market and are comfortable with sector concentration and roughly twice the price swings of the Nasdaq-100.

Key risks to know

  • Concentration risk in SOXX. Holding only semiconductor companies exposes investors to industry-cycle swings, supply-chain disruptions, and geopolitical risk (Taiwan exposure, China tariffs) in ways QQQ's diversified Nasdaq-100 exposure buffers against.
  • Higher volatility in SOXX. A beta of 2.26 means SOXX's price moves are more than twice as large as the broader market, amplifying drawdowns during tech downturns and requiring higher risk tolerance.
  • Growth-stock sensitivity in both. Both QQQ and SOXX hold few dividend payers and are sensitive to interest rate changes; rising rates tend to depress valuations of companies priced for future earnings.
  • Sector overlap and correlated losses. During periods when semiconductor stocks underperform (e.g., chip gluts or demand shocks), SOXX will likely lag, while QQQ's broader base may cushion the fall.

Bottom line

If you want diversified large-cap growth exposure with lower volatility and cheaper fees, QQQ stands out; if you're tilting toward semiconductors as a secular theme and accept higher price swings, SOXX offers concentrated sector leverage. Neither guarantees outperformance, and past results don't predict the future.

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

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