vsETFvs

SMH vs QQQ

VanEck Semiconductor ETF vs Invesco QQQ Trust

The short answer: SMH is a pure semiconductor bet (25 stocks). QQQ is the broader Nasdaq-100. Same general 'tech growth' theme, very different concentration.

Metric
SMH
QQQ
Issuer
VanEck
Invesco
Benchmark
MVIS US Listed Semiconductor 25 Index
Nasdaq-100 Index
Inception
Dec 20, 2011
Mar 10, 1999
Expense Ratio(lower is better)
3500 bps
1800 bps
AUM(higher = more liquid)
$58.8B
$440.3B
Dividend Yield (TTM)
0.22%
0.42%
Dividend Frequency
Annual
Quarterly
Beta (vs S&P 500)(1 = market)
1.82
1.18
1-Year Return
137.04%
37.67%
3-Year Return (annualized)
58.46%
27.65%
5-Year Return (annualized)
36.20%
17.02%
10-Year Return (annualized)
36.13%
21.34%
Data as of May 9, 2026. Returns annualized; past performance is not indicative of future results.

Total Return

YTDSMH: 40.42% · QQQ: 14.51%
1YSMH: 137.04% · QQQ: 37.67%
3Y ann.SMH: 58.46% · QQQ: 27.65%
5Y ann.SMH: 36.20% · QQQ: 17.02%
10Y ann.SMH: 36.13% · QQQ: 21.34%

Which should you pick?

Choose SMH

Pick SMH if you specifically want concentrated semiconductor exposure. NVIDIA, TSMC, and Broadcom alone make up over 40% of the fund — this is a thematic bet, not a diversifier.

Choose QQQ

Pick QQQ for diversified growth-tech exposure across 100 names. About 20% of QQQ is already in semis (NVDA, AVGO, AMD), but it's not concentrated like SMH.

Either is fine if…

If you're already long QQQ and want to dial up semiconductor exposure further, a small SMH allocation (5–15%) is one way. Just understand the concentration you're adding.

Holdings & sectors

SMH – Top Holdings

  • NVDANVIDIA Corp20.5%
  • TSMTaiwan Semiconductor13.0%
  • AVGOBroadcom Inc9.0%
  • AMDAdvanced Micro Devices5.8%
  • ASMLASML Holding NV5.2%

QQQ – Top Holdings

  • AAPLApple Inc8.9%
  • MSFTMicrosoft Corp8.2%
  • NVDANVIDIA Corp7.8%
  • AMZNAmazon.com Inc5.2%
  • AVGOBroadcom Inc4.6%

Sector Breakdown

Semiconductors
SMH
95.0%
QQQ
0.0%
Technology
SMH
0.0%
QQQ
50.0%
Communication
SMH
0.0%
QQQ
16.0%
Consumer Discretionary
SMH
0.0%
QQQ
13.0%
Healthcare
SMH
0.0%
QQQ
6.0%
Semiconductor Equipment
SMH
5.0%
QQQ
0.0%
Consumer Staples
SMH
0.0%
QQQ
5.0%
Industrials
SMH
0.0%
QQQ
5.0%
Utilities
SMH
0.0%
QQQ
1.2%
Financials
SMH
0.0%
QQQ
0.5%
Energy
SMH
0.0%
QQQ
0.5%
Materials
SMH
0.0%
QQQ
0.5%
Real Estate
SMH
0.0%
QQQ
0.3%

At a glance

Expense ratio
SMH3500 bps
QQQ1800 bps
AUM
SMH$58.8B
QQQ$440.3B
Dividend yield
SMH0.22%
QQQ0.42%
5Y return (ann.)
SMH36.20%
QQQ17.02%

SMH vs QQQ – FAQ

How much overlap is there between SMH and QQQ?
Roughly 35–45% by weight, driven by NVDA and AVGO being heavy in both. SMH is more concentrated — top 5 holdings make up ~55% — while QQQ's top 5 are ~37%.
Is SMH riskier than QQQ?
Yes. SMH's beta is around 1.5 vs QQQ's 1.16. Semiconductors are notoriously cyclical, with deeper drawdowns during inventory corrections (e.g., 2022 saw SMH fall ~36%).
Has SMH outperformed QQQ?
Yes, by a wide margin over the past 5–10 years, driven largely by NVIDIA. Whether that continues depends on AI capex sustainability and the broader semi cycle.
What's the expense ratio comparison?
SMH charges 0.35% vs QQQ's 0.20%. The premium is for concentrated thematic exposure that you'd otherwise have to construct yourself.
Is SMH a good long-term hold?
It can be, but understand that 25-stock concentration in one cyclical sector means 30%+ drawdowns are normal. Position it as a satellite, not a core holding.

Related Comparisons