CLSE vs. GARP

Last updated Jun 9, 2026

CLSE (Convergence Long/Short Equity ETF) and GARP (iShares MSCI USA Quality GARP ETF) are both exchange-traded funds - CLSE is a Long-Short fund actively managed by Convergence Investment Partners, while GARP is a Large Cap Growth Equities fund tracking the MSCI USA Quality GARP Select Index. CLSE is actively managed, while GARP is passively managed. Over the past 3 years, CLSE returned 31.32%/yr vs 32.09%/yr for GARP. A 0.69 correlation means they provide meaningful diversification when combined. CLSE charges 1.56%/yr vs 0.15%/yr for GARP.

Performance

CLSE vs. GARP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Convergence Long/Short Equity ETF (CLSE) and iShares MSCI USA Quality GARP ETF (GARP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CLSE achieves a 23.02% return, which is significantly higher than GARP's 17.00% return.

CLSE

• 1D: 0.18%
• 1M: 1.85%
• YTD: 23.02%
• 6M: 24.70%
• 1Y: 47.52%
• 3Y*: 31.32%
• 5Y*: —
• 10Y*: —

GARP

• 1D: 1.23%
• 1M: 3.36%
• YTD: 17.00%
• 6M: 16.58%
• 1Y: 37.42%
• 3Y*: 32.09%
• 5Y*: 19.24%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

CLSE vs. GARP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
CLSE Convergence Long/Short Equity ETF	23.02%	20.44%	35.54%	17.54%	-3.04%
GARP iShares MSCI USA Quality GARP ETF	17.00%	21.49%	37.42%	42.86%	-14.30%

Correlation

The correlation between CLSE and GARP is 0.74, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.74
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (All Time) Calculated using the full available price history since Feb 23, 2022	0.69

The correlation between CLSE and GARP has been stable across timeframes, ranging from 0.69 to 0.75 - a consistent structural relationship.

CLSE vs. GARP - Sectors Allocation Comparison

Sectors	CLSE	GARP
Technology	36.0%	56.7%
Consumer Cyclical	6.3%	6.1%
Communication Services	6.2%	12.0%
Healthcare	6.1%	5.4%
Industrials	2.1%	6.9%
Energy	1.9%	2.7%
Utilities	1.7%	1.4%
Real Estate	1.6%	0.4%
Basic Materials	1.4%	0.9%
Consumer Defensive	0.6%	-
Financial Services	-3.3%	7.5%

Return for Risk

CLSE vs. GARP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

CLSE

CLSE Risk / Return Rank: 96
CLSE Sharpe Ratio Rank: 95
CLSE Sortino Ratio Rank: 95
CLSE Omega Ratio Rank: 94
CLSE Calmar Ratio Rank: 97
CLSE Martin Ratio Rank: 97

GARP

GARP Risk / Return Rank: 65
GARP Sharpe Ratio Rank: 69
GARP Sortino Ratio Rank: 63
GARP Omega Ratio Rank: 64
GARP Calmar Ratio Rank: 61
GARP Martin Ratio Rank: 66

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

CLSE vs. GARP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Convergence Long/Short Equity ETF (CLSE) and iShares MSCI USA Quality GARP ETF (GARP). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	CLSE	GARP	Difference
Sharpe ratio: Return per unit of total volatility	3.54	2.04	+1.50
Sortino ratio: Return per unit of downside risk	4.76	2.64	+2.12
Omega ratio: Gain probability vs. loss probability	1.62	1.35	+0.27
Calmar ratio: Return relative to maximum drawdown	9.85	2.75	+7.10
Martin ratio: Return relative to average drawdown	36.64	10.94	+25.70
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

CLSE vs. GARP - Sharpe Ratio Comparison

The current CLSE Sharpe Ratio is 3.54, which is higher than the GARP Sharpe Ratio of 2.04. The chart below compares the historical Sharpe Ratios of CLSE and GARP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	CLSE	GARP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.54	2.04	+1.50
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.88	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.54	0.86	+0.68

Drawdowns

CLSE vs. GARP - Drawdown Comparison

The maximum CLSE drawdown since its inception was -16.45%, smaller than the maximum GARP drawdown of -31.34%. Use the drawdown chart below to compare losses from any high point for CLSE and GARP.

Drawdown Indicators

	CLSE	GARP	Difference
Max Drawdown Largest peak-to-trough decline	-16.45%	-31.34%	+14.89%
Max Drawdown (1Y) Largest decline over 1 year	-4.85%	-13.69%	+8.84%
Max Drawdown (3Y) Largest decline over 3 years	-16.45%	-23.73%	+7.28%
Max Drawdown (5Y) Largest decline over 5 years	—	-30.61%	—
Current Drawdown Current decline from peak	-2.18%	-4.24%	+2.06%
Average Drawdown Average peak-to-trough decline	-3.59%	-7.36%	+3.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.31%	3.43%	-2.12%

Volatility

CLSE vs. GARP - Volatility Comparison

The current volatility for Convergence Long/Short Equity ETF (CLSE) is 4.28%, while iShares MSCI USA Quality GARP ETF (GARP) has a volatility of 6.79%. This indicates that CLSE experiences smaller price fluctuations and is considered to be less risky than GARP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CLSE	GARP	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.28%	6.79%	-2.51%
Volatility (6M) Calculated over the trailing 6-month period	10.46%	14.70%	-4.24%
Volatility (1Y) Calculated over the trailing 1-year period	13.52%	18.47%	-4.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.91%	22.06%	-8.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.91%	23.94%	-10.03%

CLSE vs. GARP - Expense Ratio Comparison

CLSE has a 1.56% expense ratio, which is higher than GARP's 0.15% expense ratio.

Dividends

CLSE vs. GARP - Dividend Comparison

CLSE's dividend yield for the trailing twelve months is around 0.77%, more than GARP's 0.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
CLSE Convergence Long/Short Equity ETF	0.77%	0.95%	0.93%	1.21%	0.85%	0.00%	0.00%
GARP iShares MSCI USA Quality GARP ETF	0.26%	0.31%	0.38%	0.75%	1.85%	0.67%	0.75%

Frequently Asked Questions

Can I hold both CLSE and GARP in my portfolio?

CLSE and GARP have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CLSE or GARP?

GARP has higher volatility (6.79%) compared to CLSE (4.28%). In terms of maximum drawdown, CLSE dropped -16.45% vs GARP's -31.34%.

Which ETF is better, CLSE or GARP?

On 3-year performance, GARP leads with 32.09% vs 31.32% for CLSE. On fees, GARP is cheaper at 0.15% per year. On volatility, CLSE has been the lower-risk option at 4.28%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CLSE or GARP?

Over the 3-year period, GARP has performed better with a 32.09% return vs 31.32%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CLSE or GARP?

GARP is cheaper with a 0.15% expense ratio, compared with 1.56% for CLSE.

Which ETF pays a higher dividend yield, CLSE or GARP?

CLSE has the higher dividend yield at 0.77%, compared with 0.26% for GARP.

What is the main difference between CLSE and GARP?

CLSE is categorized as Long-Short, while GARP is Large Cap Growth Equities. They also come from different issuers: Convergence Investment Partners and iShares. Their fees differ too: 1.56% for CLSE and 0.15% for GARP.

Which has better risk-adjusted returns?

CLSE currently has the higher Sharpe Ratio (3.54 vs 2.04), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.