SMH vs QQQ Stock Comparison: AI Score, Valuation, Performance and Upside
SMH offers pure-play semiconductor sector exposure with very high cyclical beta, while QQQ offers broader Nasdaq-100 large-cap growth exposure with meaningful but diluted chip weighting. Investors who want to maximize AI chip cycle exposure choose SMH; investors who want broad large-cap growth with tech and semiconductor exposure as part of a diversified portfolio typically prefer QQQ.
SMH vs QQQ is the decision between maximum semiconductor sector concentration and diversified large-cap Nasdaq growth — SMH amplifies the chip cycle in both directions, while QQQ smooths it with software, consumer, and biotech exposure.
QQQ holds the edge across 3 of 5 key metrics in this comparison. SMH has delivered stronger 1-year price return (+42.07% vs +8.93% for QQQ).
- prefer a pure-play semiconductor sector position during AI chip supercycle conditions
- value the inclusion of TSMC and ASML for global semiconductor supply chain exposure
- want maximum sensitivity to AI data center spending on GPU and accelerator chips
- are comfortable with higher volatility and deeper drawdowns during semiconductor inventory corrections
- prefer broad Nasdaq-100 growth exposure across technology, consumer, and healthcare sectors
- value the lower 0.20% expense ratio and superior options market liquidity for hedging
- want semiconductor exposure as part of a diversified large-cap growth portfolio without semiconductor cycle concentration
- are comfortable with FAANGM megacap concentration as the dominant return driver within the fund
| Metric | SMH | QQQ |
|---|---|---|
| ETF scorei | 32.7 | 29.1 |
| Latest closei | $518.52 | $685.28 |
| 1M returni | -17.77% | -8.58% |
| 3M returni | -9.93% | -5.23% |
| 6M returni | -0.80% | +0.75% |
| 1Y returni | +42.07% | +8.93% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | SMH | QQQ |
|---|---|---|
| 1Y ago | $14.25K (+42.5%) started 2025-11-03 | $10.94K (+9.4%) started 2025-11-03 |
| 5Y ago | $37.44K (+274.4%) started 2021-11-04 | $18.27K (+82.7%) started 2021-11-04 |
| 10Y ago | $188.34K (+1783.4%) started 2016-11-04 | $69.2K (+592.0%) started 2016-11-04 |
Hypothetical — past performance does not guarantee future results.
| Metric | SMH | QQQ |
|---|---|---|
| Expense ratioi | 0.35% | 0.18% |
| Total assets (AUM)i | $74.88B | $498.95B |
| Dividend yieldi | 0.18% | 0.42% |
| Trailing P/Ei | 27.70 | 26.24 |
| Betai | 1.84 | 1.26 |
| 52-week change | 42.07% | 8.93% |
| Metric | SMH | QQQ |
|---|---|---|
| 1Y returni | +42.07% | +8.93% |
| 6M returni | -0.80% | +0.75% |
| 3M returni | -9.93% | -5.23% |
| 1M returni | -17.77% | -8.58% |
| 1Y Sharpe ratio | 0.96 | 0.30 |
| Betai | 1.84 | 1.26 |
| Dividend yieldi | 0.18% | 0.42% |
| 5Y CAGR | +29.45% | +12.14% |
Over the past year, SMH and QQQ have moved strongly in the same direction (correlation of 0.91), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | SMH | QQQ |
|---|---|---|---|
| 1Y | Growthi | +42.07% | +8.93% |
| CAGRi | +42.11% | +8.93% | |
| Volatilityi | 40.82% | 20.29% | |
| Sharpe ratioi | 0.96 | 0.30 | |
| Sortino ratioi | 1.35 | 0.43 | |
| Max drawdowni | 24.62% | 11.72% | |
| Current drawdowni | 22.48% | 9.79% | |
| Avg drawdowni | 7.31% | 3.31% | |
| Ulcer Indexi | 9.76% | 4.17% | |
| Max daily dropi | 9.22% | 4.80% | |
| Max wkly dropi | 14.09% | 6.79% | |
| 5Y | Growthi | +263.17% | +77.31% |
| CAGRi | +29.45% | +12.14% | |
| Volatilityi | 37.17% | 23.10% | |
| Sharpe ratioi | 0.76 | 0.42 | |
| Sortino ratioi | 1.11 | 0.60 | |
| Max drawdowni | 45.30% | 35.12% | |
| Current drawdowni | 22.48% | 9.79% | |
| Avg drawdowni | 12.49% | 9.23% | |
| Ulcer Indexi | 16.68% | 13.61% | |
| Max daily dropi | 9.83% | 6.21% | |
| Max wkly dropi | 15.31% | 11.98% | |
| 10Y | Growthi | +1609.53% | +545.24% |
| CAGRi | +32.84% | +20.50% | |
| Volatilityi | 33.77% | 22.64% | |
| Sharpe ratioi | 0.88 | 0.74 | |
| Sortino ratioi | 1.27 | 1.05 | |
| Max drawdowni | 45.30% | 35.12% | |
| Current drawdowni | 22.48% | 9.79% | |
| Avg drawdowni | 8.83% | 6.25% | |
| Ulcer Indexi | 13.02% | 10.39% | |
| Max daily dropi | 14.41% | 11.98% | |
| Max wkly dropi | 19.23% | 16.20% |
| Category | SMH | QQQ |
|---|---|---|
| Fund name | VanEck Semiconductor ETF | Invesco QQQ Trust |
| Type | ETF | ETF |
| Expense ratioi | 0.35% | 0.18% |
| Total assets (AUM)i | $74.88B | $498.95B |
| Dividend yieldi | 0.18% | 0.42% |
- 100% semiconductor sector concentration gives direct exposure to AI chip demand, data center build-out, and EV semiconductor content growth
- Includes TSMC and ASML, the two globally dominant advanced chip manufacturing and lithography equipment suppliers
- Higher beta to AI chip spending cycles than any diversified tech ETF including QQQ
- Broader diversification across 100 companies in technology, consumer, healthcare, and other sectors reduces single-industry cyclical risk
- 0.20% expense ratio is lower than SMH's 0.35%, saving cost over long holding periods
- Largest non-S&P 500 ETF by AUM and options market liquidity, comparable to SPY in derivatives depth
- Semiconductor industry is cyclical — SMH underperforms significantly during inventory correction and PC/smartphone demand downturns
- 0.35% expense ratio is meaningfully higher than QQQ's 0.20%
- Extreme concentration in 25 names means idiosyncratic stock risk (one major miss) can drive significant drawdowns
- Heavy concentration in FAANGM-type megacap tech (AAPL, MSFT, AMZN, NVDA, GOOGL, META) — top 10 holdings often exceed 50% of assets
- Semiconductor exposure is meaningful (~20–25%) but diluted by software and consumer names — investors wanting pure chip exposure should use SMH instead
- Nasdaq-100 methodology can include non-tech companies that investors may not expect in a 'tech ETF'
Compare more than two at a time
This page is a fixed writeup on SMH and QQQ. Our comparison engine is the interactive version: load up to five tickers, switch timeframes, and get the correlation, drawdown, and overlap analysis that a static page can't show.
Add three more names beside SMH and QQQ, mixing stocks and ETFs in the same table — useful when the real question is which of a whole peer group to own.
AI score, forward P/E, analyst target upside, operating margin, and revenue growth are scored head-to-head, with a running tally of which ticker leads on how many metrics.
Volatility, Sharpe and Sortino ratios, maximum, current, and average drawdown, Ulcer Index, and worst single-day and single-week drops across every timeframe.
Pairwise daily-return correlation for every combination, so you can see whether two holdings actually diversify each other or just move together.
A scatter plot of forward P/E against return on equity, plus drawdown and 30-day rolling volatility charts, to separate what is cheap from what is merely beaten down.
For ETFs, a top-holdings comparison that exposes hidden overlap between funds. Every comparison exports to CSV for your own spreadsheet work.
Two comparisons a week are free without an account. A 14-day trial removes the limit and adds AI price forecasts, stock rankings, saved watchlists, and the intrinsic value calculator — no credit card required.
Want deeper AI forecasts?
This comparison page is public and free forever. Subscribers can unlock saved watchlists, full AI rankings, detailed forecasts, and interactive analysis tools.