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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 21, 2026

ETFs254
Total AUM$964B

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.

ETFs477
Total AUM$4543B

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$696.06 as of July 21, 2026$524.14 as of July 21, 2026
Distribution yield0.46%0.22%
Distribution Safety Score™ 9580
Expense ratio0.18%0.35%
AUM$466B$45.1B
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
Beta1.242.24
Last dividend$0.7941$0.2830
Ex-dividend date12/21/202606/15/2026

Bottom lineChoose QQQ if you want a growth tilt and can accept bigger swings for higher upside. Choose SOXX if you 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

QQQ has lagged SOXX over the trailing twelve months, posting a 23.97% total return against 113.24%. The lead holds up over 10 years too: SOXX has compounded at 33.12% a year, against 20.88% for QQQ. QQQ has been the steadier holding, though — annualized volatility of 20.2% against 38.5% for SOXX. Figures are total returns: price change plus every distribution reinvested.

SymbolYTD1Y3Y5Y10YSince Jul 2001Volatility Sharpe Sortino Max drawdown
QQQ13.80%23.97%23.41%15.12%20.88%12.52%20.2%0.821.18-22.8%
SOXX67.27%113.24%46.88%30.85%33.12%14.00%38.5%0.891.26-41.4%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 20, 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 0.46% vs 0.22% 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 ($466B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, QQQ would generate roughly $3.83/month, while SOXX would produce $1.83/month, at current distribution rates. Both pay quarterly distributions.

QQQ yield0.46%
SOXX yield0.22%
Monthly diff on $10K$2.00

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. Beta is 1.24 for QQQ and 2.24 for SOXX, indicating QQQ is less volatile relative to the market.

QQQ beta1.24
SOXX beta2.24

Fund details

QQQ is managed by Invesco (launched 03/10/1999) with $466B in assets. SOXX is managed by iShares (launched 07/10/2001) with $45.1B in assets.

QQQ AUM$466B
SOXX AUM$45.1B

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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. They are issued by Invesco and iShares respectively.

Can I hold both QQQ and SOXX?

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.

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 $3.83 per month ($46.00 annually). The same in SOXX would produce about $1.83 per month ($22.00 annually).

Which has performed better historically, QQQ or SOXX?

QQQ has lagged SOXX over the trailing twelve months, posting a 23.97% total return against 113.24%. The lead holds up over 10 years too: SOXX has compounded at 33.12% a year, against 20.88% for QQQ. QQQ has been the steadier holding, though — annualized volatility of 20.2% against 38.5% 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 July 2026 from current fund data.

Overview

QQQ tracks the Nasdaq-100 Index of the 100 largest non-financial Nasdaq stocks, giving you broad exposure to mega-cap tech, consumer, and biotech names. SOXX is narrower: it holds only US-listed semiconductor companies through the ICE Semiconductor Index. The key distinction is diversification—QQQ spreads risk across a wide swath of large-cap growth names, while SOXX concentrates on a single industry subsector.

How they differ

QQQ holds 100 stocks across multiple industries (tech, consumer discretionary, biotech, communications); SOXX holds roughly 30 semiconductor manufacturers, making it a sector bet rather than a broad-market proxy. QQQ's 0.44% distribution rate and 0.18% expense ratio reflect a larger, cheaper fund, while SOXX yields 0.19% but charges 0.35% in fees—nearly double QQQ's cost. The most striking difference is volatility: SOXX has a beta of 2.24 versus QQQ's 1.24, meaning it swings roughly twice as hard as the broader Nasdaq-100 in both directions. QQQ's $481B in assets dwarf SOXX's $36.9B, offering tighter trading spreads and more liquidity.

Who each is best for

QQQ: Fits investors seeking broad exposure to large-cap growth and tech mega-caps without betting on a single industry. The low cost and wide diversification suit long-term accumulators comfortable with Nasdaq volatility but not single-sector concentration.

SOXX: Designed for investors who believe semiconductor demand will outpace the broader market and are willing to accept 2x leverage-like volatility in exchange for focused exposure to chip makers. Works for tactical allocators or those building a custom tech tilt through multiple sector holdings.

Key risks to know

  • Sector concentration in SOXX. Semiconductors are cyclical and capital-intensive; downturns in chip demand, manufacturing overcapacity, or trade restrictions can trigger sharp, sustained drawdowns in ways that won't affect QQQ as severely. SOXX's beta of 2.24 captures this amplified sensitivity.
  • Nasdaq dominance in QQQ. The Nasdaq-100 is heavily weighted toward mega-cap tech (Apple, Microsoft, Nvidia, Tesla). A tech sector correction or multiple compression hits QQQ harder than the broader S&P 500, though less acutely than SOXX.
  • Fee drag over time. SOXX's 0.35% expense ratio is nearly double QQQ's 0.18%. Over 20 years, that difference compounds; for a $10,000 position, QQQ saves roughly $3,200 in cumulative fees (assuming 8% annual growth).
  • Geopolitical and supply-chain risk in SOXX. Semiconductor companies face chip export controls, Taiwan strait tensions, and supply-chain disruptions. These risks are idiosyncratic to the sector and don't materially affect QQQ's diversified holdings.

Bottom line

If you want broad large-cap growth exposure at a rock-bottom cost, QQQ's size, liquidity, and low fees are hard to beat. If you're convinced semiconductors will significantly outperform and can tolerate roughly 2x the volatility, SOXX lets you make that bet with precision—but you'll pay higher fees and accept single-industry risk. Past performance does not guarantee future returns.

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

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