Dividend comparison

QQQ vs SMH: Which Is Better?

Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Invesco QQQ Trust, Series 1 and VanEck Semiconductor ETF, side by side. Updated October 21, 2026.

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QQQ vs SMH: key differences
The short answer, from the latest data on this page.
  • Fees. QQQ is cheaper at 0.18% a year versus 0.35% for SMH. On $10,000 that is $17 a year less in fees.
  • Income. QQQ pays more income, yielding 0.53% over the last twelve months versus 0.20% for SMH. That is about $33 more a year on $10,000. Both pay annual.
  • Performance. Over the last 5 years, SMH returned 322.6% versus 97.0% for QQQ, with dividends reinvested. $10,000 would have grown to $42,258 in SMH and $19,698 in QQQ.
  • Risk. SMH has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -45.3%, against -35.1% for QQQ.
  • Diversification. QQQ holds 102 positions and SMH holds 26. The ten largest positions make up 47.2% of QQQ and 68.1% of SMH.
  • Overlap. 31% of the two portfolios overlap by weight, across 21 shared holdings.
  • Dividend growth. QQQ grew its yearly payout 13.3% a year over the last 4 years, versus 8.9% for SMH.
  • Size. QQQ is the larger fund with $487.5 billion in assets, against $66.6 billion for SMH.

Bottom line: QQQ fits better if you care most about lower fees, more income today, smaller drawdowns, faster dividend growth and broader diversification. SMH fits better if you care most about stronger 5-year returns.

Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
MetricQQQ
Invesco QQQ Trust, Series 1
SMH
VanEck Semiconductor ETF
Dividend yield (TTM)0.53%0.20%
Dividend / share (TTM)$3.79$1.10
Payout frequencyAnnualAnnual
Last dividend$0.7514 on Oct 8, 2026$1.1047 on Dec 26, 2025
Ex-dividend dateDec 21, 2026Dec 22, 2025
Next payment$0.7941 on Dec 28, 2026—
Dividend growth (CAGR)13.3% over 4 yrs8.9% over 4 yrs
Price$717.63$546.36
Dividend growth streak—2 years
Beta1.231.98
Max drawdown (5Y)-35.1%-45.3%
Market cap$479.05B$65.69B
ExchangeNASDAQNASDAQ
Expense ratio0.18%0.35%
Assets under management$487.46B$66.62B
Number of holdings10226
Top 10 concentration47.2%68.1%
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.

QQQ

$4.40/mo

$53 /yr at 0.53% yield

SMH

$1.68/mo

$20 /yr at 0.20% yield

Dividend history
Total dividends paid per share in each calendar year. QQQ pays annual; SMH pays annual.
YearQQQSMH
2025$2.7949$1.1047
2024$3.0623$1.0713
2023$2.3200$1.0427
2022$2.1351$1.2005
2021$1.6968$0.7865
Strategy: Broad index
Low-cost funds that hold an entire market or index at market-cap weights and make no attempt to select securities. Return is the index return less a small fee, and dividends are a by-product of what the underlying companies choose to pay rather than an objective of the strategy. Differences between funds tracking the same index usually come down to fee, wrapper structure, share price and trading liquidity, not to holdings.

Current income is low and outside your control, so these need pairing with something else if the portfolio has to produce cash today.

What QQQ vs SMH actually do

QQQ
Invesco's fund tracking the Nasdaq-100, the largest non-financial companies listed on the Nasdaq exchange.

The index is modified market-cap weighted and excludes financials by rule, which is why it lands so heavily in technology, communication services and consumer discretionary names. In December 2025 the fund converted from a unit investment trust to a conventional open-end fund and cut its fee, so it can now reinvest income and lend securities like its peers. It remains the most liquid Nasdaq-100 vehicle by a wide margin and the reference asset for a large share of the options-income products in this category.

Suits investors who want concentrated large-cap growth exposure and anyone who needs deep options liquidity. Dividends are incidental, so it does not answer an income mandate on its own.

Growth-tilted core, concentrated

Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $19,698 in QQQ and $42,258 in SMH.
PeriodQQQSMH
1 month-0.43%-4.65%
3 months3.10%-2.23%
Year to date17.09%51.71%
1 year17.78%57.84%
3 years105.61%289.73%
5 years96.98%322.58%
  • QQQ
  • SMH
35290546202120222023202420252026197423

Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.

Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
  • QQQ
  • SMH
0%25%50%75%100%Technology58.8%100.0%Communication Services12.1%Consumer Cyclical10.2%Consumer Defensive6.1%Industrials5.5%Healthcare4.4%Utilities1.1%Basic Materials1.0%Energy0.5%Financial Services0.2%Other0.2%0.0%
QQQ vs SMH holdings overlap
31% overlap by weight, with 21 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
Largest shared holdingsQQQ weightSMH weight
NVDANVIDIA Corp8.17%20.42%
MUMicron Technology Inc4.41%4.63%
AMDAdvanced Micro Devices Inc3.79%5.43%
AVGOBroadcom Inc2.49%5.49%
INTCIntel Corp2.08%4.09%
LRCXLam Research Corp1.47%4.07%
AMATApplied Materials Inc1.41%4.16%
TXNTexas Instruments Inc1.09%4.99%
KLACKLA Corp0.94%4.30%
MRVLMarvell Technology Inc0.90%4.45%
Top 10 holdings
Largest positions by portfolio weight.

QQQ102 holdings total

NameWeight
NVDANVIDIA Corp8.17%
AAPLApple Inc7.82%
MSFTMicrosoft Corp6.19%
AMZNAmazon.com Inc4.42%
MUMicron Technology Inc4.41%
AMDAdvanced Micro Devices Inc3.79%
METAMeta Platforms Inc3.28%
GOOGLAlphabet Inc3.15%
TSLATesla Inc3.02%
GOOGAlphabet Inc2.94%

SMH26 holdings total

NameWeight
NVDANvidia Corp20.42%
TSMTaiwan Semiconductor Manufacturing Co L9.45%
AVGOBroadcom Inc5.49%
AMDAdvanced Micro Devices Inc5.43%
TXNTexas Instruments Inc4.99%
MUMicron Technology Inc4.63%
ASMLAsml Holding Nv4.51%
ADIAnalog Devices Inc4.47%
MRVLMarvell Technology Inc4.45%
KLACKla Corp4.30%

Quick verdict

QQQ fits better if you care most about lower fees, more income today, smaller drawdowns, faster dividend growth and broader diversification. SMH fits better if you care most about stronger 5-year returns. Model the holding inside your real portfolio before deciding.

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Frequently asked questions

Is QQQ or SMH better for dividend income?
It depends on your goals. QQQ currently yields 0.53% Trailing Twelve Months (TTM) while SMH yields 0.20%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between QQQ and SMH?
Invesco QQQ Trust, Series 1 (QQQ) is an ETF listed on NASDAQ. VanEck Semiconductor ETF (SMH) is an ETF listed on NASDAQ. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, QQQ or SMH?
QQQ has the lower expense ratio. QQQ charges 0.18% a year and SMH charges 0.35%, a difference of $17 a year on a $10,000 investment.
Which has performed better, QQQ or SMH?
Over the last 5 years, SMH has the higher total return with dividends reinvested: QQQ returned 97.0% and SMH returned 322.6%. Past performance does not predict future returns.
Which is riskier, QQQ or SMH?
Measured by the worst peak-to-trough decline over the last five years, SMH has been riskier: QQQ fell as much as 35.1% and SMH as much as 45.3%. Their betas are 1.23 and 1.98.
How much do QQQ and SMH overlap?
About 31% of the two portfolios overlap by weight, across 21 shared holdings. The largest shared positions are NVDA, MU, AMD. Holding both still adds meaningful diversification.
How often do QQQ and SMH pay dividends?
Both pay annual. The most recent payments were $0.7514 for QQQ and $1.1047 for SMH.
How much income does $10,000 in QQQ vs SMH generate?
At current TTM yields, $10,000 in QQQ would generate roughly $4.40 per month ($53 annually). The same amount in SMH would produce about $1.68 per month ($20 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both QQQ and SMH?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare QQQ vs SMH with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how QQQ and SMH fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.

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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.