QQQ vs SMH: returns, risk and drawdowns compared
Invesco QQQ Trust against VanEck Semiconductor ETF, over the same 20 years (November 2006 to October 2026) with dividends reinvested.
Data updated October 2026
From November 2006 to October 2026, QQQ returned 16.1% a year and SMH 21.3% a year on average, so SMH came out ahead by 5.2% a year. SMH was the more volatile of the two (26.0% against 18.6% a year), and the deepest falls from a month-end high were 49.7% for QQQ and 52.0% for SMH.
The correlation of monthly returns was 0.85: they usually moved together. Over 205 rolling 3-year periods, QQQ did better in 33% and SMH in 67%.
Side by side
| QQQ | SMH | |
|---|---|---|
| Annual return (CAGR) | +16.1% | +21.3% |
| Total return | +1871% | +4672% |
| Annual volatility | 18.6% | 26.0% |
| Maximum drawdown (month-end) | −49.7% | −52.0% |
| Worst month | −15.6% | −19.5% |
| Best month | +15.6% | +32.2% |
| Positive months | 63% | 64% |
| Best year | 2023: +54.9% | 2023: +73.4% |
| Worst year | 2008: −41.7% | 2008: −44.8% |
| 1-year return | +19.5% | +57.8% |
| 5 years, a year | +14.5% | +33.2% |
| 10 years, a year | +20.6% | +33.0% |
| Trading currency | USD | USD |
First nine rows: the same 240 months for both funds. Trailing returns: to each fund’s last close.
Growth of 10,000: QQQ vs SMH
Returns by calendar year
| Year | QQQ | SMH |
|---|---|---|
| 2025 | +20.8% | +49.2% |
| 2024 | +25.6% | +39.1% |
| 2023 | +54.9% | +73.4% |
| 2022 | −32.6% | −33.9% |
| 2021 | +27.4% | +41.8% |
| 2020 | +48.6% | +55.0% |
| 2019 | +39.0% | +63.2% |
| 2018 | −0.1% | −9.0% |
| 2017 | +32.7% | +38.5% |
| 2016 | +7.1% | +35.5% |
| 2015 | +9.4% | −0.3% |
| 2014 | +19.2% | +30.2% |
| 2013 | +36.6% | +33.3% |
| 2012 | +18.1% | +10.2% |
| 2011 | +3.4% | +0.9% |
| 2010 | +19.9% | +18.8% |
| 2009 | +54.7% | +63.4% |
| 2008 | −41.7% | −44.8% |
| 2007 | +19.0% | +5.7% |
How the figures are calculated
Total return in the fund’s trading currency, from end-of-day prices with dividends reinvested on the ex-date. The fund’s own ongoing charges are already reflected in its price; trading costs, taxes and currency conversion are not included. Past returns do not predict future returns.
The comparison uses only the months in which both funds have prices, so the figures cover the same period even when one fund is older.
Questions
Which has returned more, QQQ or SMH?
From November 2006 to October 2026, QQQ returned +16.1% a year and SMH +21.3% a year, with dividends reinvested. Over rolling 3-year periods QQQ did better in 33% of cases. Past returns do not predict future returns.
Which is riskier, QQQ or SMH?
Over the same months annual volatility was 18.6% for QQQ and 26.0% for SMH; the deepest fall from a month-end high was 49.7% and 52.0%, and the worst single month −15.6% and −19.5%.
How correlated are QQQ and SMH?
The correlation of their monthly returns was 0.85: they usually moved together. Combining them has historically given some diversification.
More comparisons
Source: MarketStack end-of-day prices, total return with dividends reinvested. Figures are historical and descriptive; they are not forecasts and not investment advice. MEDGE Capital does not recommend buying or selling any instrument. Risk disclaimer.