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EEM vs. QUAL
Performance
Return for Risk
Drawdowns
Volatility
Dividends

EEM vs. QUAL

Last updated Jun 13, 2026

EEM (iShares MSCI Emerging Markets ETF) and QUAL (iShares MSCI USA Quality Factor ETF) are both exchange-traded funds - EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net), while QUAL is a Large Cap Blend Equities fund tracking the MSCI USA Sector Neutral Quality Index. Both are passively managed. Over the past 10 years, EEM returned 9.91%/yr vs 14.46%/yr for QUAL. A 0.66 correlation means they provide meaningful diversification when combined. EEM charges 0.72%/yr vs 0.15%/yr for QUAL.

Performance

EEM vs. QUAL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Emerging Markets ETF (EEM) and iShares MSCI USA Quality Factor ETF (QUAL). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, EEM achieves a 24.07% return, which is significantly higher than QUAL's 9.44% return. Over the past 10 years, EEM has underperformed QUAL with an annualized return of 9.91%, while QUAL has yielded a comparatively higher 14.46% annualized return.

EEM

1D
0.56%
1M
0.74%
YTD
24.07%
6M
26.94%
1Y
47.57%
3Y*
21.60%
5Y*
6.56%
10Y*
9.91%

QUAL

1D
0.47%
1M
2.14%
YTD
9.44%
6M
9.29%
1Y
22.87%
3Y*
19.30%
5Y*
11.97%
10Y*
14.46%
*Multi-year figures are annualized to reflect compound growth (CAGR)

EEM vs. QUAL - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
EEM
iShares MSCI Emerging Markets ETF		24.07%33.98%6.49%8.95%-20.56%-3.63%17.02%18.22%-15.31%37.26%
QUAL
iShares MSCI USA Quality Factor ETF		9.44%12.65%22.29%30.88%-20.50%26.94%17.04%33.89%-5.70%22.26%

Correlation

The correlation between EEM and QUAL is 0.70, 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

0.70

Correlation (3Y)
Calculated over the trailing 3-year period

0.64

Correlation (5Y)
Calculated over the trailing 5-year period

0.63

Correlation (10Y)
Calculated over the trailing 10-year period

0.65

Correlation (All Time)
Calculated using the full available price history since Jul 18, 2013

0.66

The correlation between EEM and QUAL has been stable across timeframes, ranging from 0.63 to 0.70 - a consistent structural relationship.

EEM vs. QUAL - Sectors Allocation Comparison

Sectors
EEM
QUAL

Technology

43.6%
36.5%

Financial Services

17.5%
11.5%

Consumer Cyclical

8.1%
9.3%

Industrials

6.2%
8.2%

Basic Materials

6.1%
1.7%

Communication Services

5.7%
11.1%

Energy

3.3%
4.0%

Consumer Defensive

2.7%
4.9%

Healthcare

2.5%
9.0%

Utilities

2.0%
1.9%

Real Estate

0.9%
1.8%

Technology

EEM
43.6%
QUAL
36.5%

Financial Services

EEM
17.5%
QUAL
11.5%

Consumer Cyclical

EEM
8.1%
QUAL
9.3%

Industrials

EEM
6.2%
QUAL
8.2%

Basic Materials

EEM
6.1%
QUAL
1.7%

Communication Services

EEM
5.7%
QUAL
11.1%

Energy

EEM
3.3%
QUAL
4.0%

Consumer Defensive

EEM
2.7%
QUAL
4.9%

Healthcare

EEM
2.5%
QUAL
9.0%

Utilities

EEM
2.0%
QUAL
1.9%

Real Estate

EEM
0.9%
QUAL
1.8%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares MSCI Emerging Markets ETF

iShares MSCI USA Quality Factor ETF

Often compared with EEM:
EEM vs. VWOEEM vs. SPYEEM vs. IEMGEEM vs. IS3N.DEEEM vs. VXUSEEM vs. EEMSEEM vs. SPEM
Often compared with QUAL:
QUAL vs. SPHQQUAL vs. SPYQUAL vs. MTUMQUAL vs. USMVQUAL vs. VOOQUAL vs. IVVQUAL vs. SCHD

Return for Risk

EEM vs. QUAL — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
EEM
EEM Risk / Return Rank: 7575
Overall Rank
EEM Sharpe Ratio Rank: 7676
Sharpe Ratio Rank
EEM Sortino Ratio Rank: 7070
Sortino Ratio Rank
EEM Omega Ratio Rank: 7878
Omega Ratio Rank
EEM Calmar Ratio Rank: 7575
Calmar Ratio Rank
EEM Martin Ratio Rank: 7575
Martin Ratio Rank
QUAL
QUAL Risk / Return Rank: 5959
Overall Rank
QUAL Sharpe Ratio Rank: 5959
Sharpe Ratio Rank
QUAL Sortino Ratio Rank: 6060
Sortino Ratio Rank
QUAL Omega Ratio Rank: 5656
Omega Ratio Rank
QUAL Calmar Ratio Rank: 5353
Calmar Ratio Rank
QUAL Martin Ratio Rank: 6767
Martin Ratio Rank
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.

EEM vs. QUAL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets ETF (EEM) and iShares MSCI USA Quality Factor ETF (QUAL). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

EEMQUALDifference
Sharpe ratioReturn per unit of total volatility
2.10
1.74

+0.36

Sortino ratioReturn per unit of downside risk
2.73
2.46

+0.27

Omega ratioGain probability vs. loss probability

1.40

1.31

+0.09

Calmar ratioReturn relative to maximum drawdown

3.36

2.32

+1.04

Martin ratioReturn relative to average drawdown

12.38

10.60

+1.78

EEM vs. QUAL - Sharpe Ratio Comparison

The current EEM Sharpe Ratio is 2.10, which is comparable to the QUAL Sharpe Ratio of 1.74. The chart below compares the historical Sharpe Ratios of EEM and QUAL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

EEM vs. QUAL - Drawdown Comparison

The maximum EEM drawdown since its inception was -66.43%, which is greater than QUAL's maximum drawdown of -34.06%. Use the drawdown chart below to compare losses from any high point for EEM and QUAL.

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Drawdown Indicators

EEMQUALDifference

Max Drawdown

Largest peak-to-trough decline

-66.43%

-34.06%

-32.37%

Max Drawdown (1Y)

Largest decline over 1 year

-13.52%

-9.03%

-4.49%

Max Drawdown (3Y)

Largest decline over 3 years

-17.29%

-18.00%

+0.71%

Max Drawdown (5Y)

Largest decline over 5 years

-37.49%

-28.23%

-9.26%

Max Drawdown (10Y)

Largest decline over 10 years

-39.82%

-34.06%

-5.76%

Current Drawdown

Current decline from peak

-4.12%

-0.19%

-3.93%

Average Drawdown

Average peak-to-trough decline

-16.00%

-4.10%

-11.90%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.67%

1.99%

+1.68%

Volatility

EEM vs. QUAL - Volatility Comparison

iShares MSCI Emerging Markets ETF (EEM) has a higher volatility of 10.80% compared to iShares MSCI USA Quality Factor ETF (QUAL) at 3.63%. This indicates that EEM's price experiences larger fluctuations and is considered to be riskier than QUAL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

EEMQUALDifference

Volatility (1M)

Calculated over the trailing 1-month period

10.80%

3.63%

+7.17%

Volatility (6M)

Calculated over the trailing 6-month period

19.39%

9.43%

+9.96%

Volatility (1Y)

Calculated over the trailing 1-year period

21.64%

12.10%

+9.54%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

19.26%

17.36%

+1.90%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

20.64%

18.11%

+2.53%

EEM vs. QUAL - Expense Ratio Comparison

EEM has a 0.72% expense ratio, which is higher than QUAL's 0.15% expense ratio.

Dividends

EEM vs. QUAL - Dividend Comparison

EEM's dividend yield for the trailing twelve months is around 1.79%, more than QUAL's 0.87% yield.

PositionTTM20252024202320222021202020192018201720162015
EEM
iShares MSCI Emerging Markets ETF		1.79%2.22%2.43%2.63%2.50%1.99%1.45%2.76%2.24%1.89%1.89%2.49%
QUAL
iShares MSCI USA Quality Factor ETF		0.87%0.94%1.02%1.23%1.59%1.20%1.39%1.60%2.00%1.76%1.96%1.63%

Frequently Asked Questions

EEM and QUAL have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

EEM has higher volatility (10.80%) compared to QUAL (3.63%). In terms of maximum drawdown, EEM dropped -66.43% vs QUAL's -34.06%.

On 10-year performance, QUAL leads with 14.46% vs 9.91% for EEM. On fees, QUAL is cheaper at 0.15% per year. On volatility, QUAL has been the lower-risk option at 3.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, QUAL has performed better with a 14.46% return vs 9.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

QUAL is cheaper with a 0.15% expense ratio, compared with 0.72% for EEM.

EEM has the higher dividend yield at 1.79%, compared with 0.87% for QUAL.

EEM is categorized as Emerging Markets Diversified, while QUAL is Large Cap Blend Equities. EEM tracks MSCI Emerging Markets Index (Net), while QUAL tracks MSCI USA Sector Neutral Quality Index. Their fees differ too: 0.72% for EEM and 0.15% for QUAL.

EEM currently has the higher Sharpe Ratio (2.10 vs 1.74), 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.

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