GARP vs. NACP

Last updated Jun 3, 2026

GARP (iShares MSCI USA Quality GARP ETF) and NACP (Impact Shares NAACP Minority Empowerment ETF) are both Large Cap Growth Equities funds - GARP tracks the MSCI USA Quality GARP Select Index while NACP tracks the Morningstar Minority Empowerment Index. Both are passively managed. Over the past 5 years, GARP returned 20.74%/yr vs 16.17%/yr for NACP. Their correlation of 0.90 suggests significant overlap in exposure. GARP charges 0.15%/yr vs 0.49%/yr for NACP.

Performance

GARP vs. NACP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Quality GARP ETF (GARP) and Impact Shares NAACP Minority Empowerment ETF (NACP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with GARP having a 22.17% return and NACP slightly higher at 22.34%.

GARP

• 1D: -0.01%
• 1M: 12.94%
• YTD: 22.17%
• 6M: 23.18%
• 1Y: 46.14%
• 3Y*: 33.92%
• 5Y*: 20.74%
• 10Y*: —

NACP

• 1D: 0.74%
• 1M: 9.70%
• YTD: 22.34%
• 6M: 21.77%
• 1Y: 44.81%
• 3Y*: 27.24%
• 5Y*: 16.17%
• 10Y*: —

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

GARP vs. NACP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
GARP iShares MSCI USA Quality GARP ETF	22.17%	21.49%	37.42%	42.86%	-26.75%	27.99%	26.51%
NACP Impact Shares NAACP Minority Empowerment ETF	22.34%	21.38%	23.93%	29.69%	-23.05%	27.62%	22.84%

Correlation

The correlation between GARP and NACP is 0.88, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (All Time) Calculated using the full available price history since Jan 17, 2020	0.90

The correlation between GARP and NACP has been stable across timeframes, ranging from 0.88 to 0.93 - a consistent structural relationship.

GARP vs. NACP - Sectors Allocation Comparison

Sectors	GARP	NACP
Technology	56.7%	35.8%
Communication Services	12.0%	9.8%
Financial Services	7.5%	10.6%
Industrials	6.9%	8.7%
Consumer Cyclical	6.1%	11.1%
Healthcare	5.4%	9.2%
Energy	2.7%	5.0%
Utilities	1.4%	3.4%
Basic Materials	0.9%	1.5%
Real Estate	0.4%	1.3%
Consumer Defensive	-	3.6%

Return for Risk

GARP vs. NACP — Risk / Return Rank

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

GARP

GARP Risk / Return Rank: 72
GARP Sharpe Ratio Rank: 79
GARP Sortino Ratio Rank: 72
GARP Omega Ratio Rank: 71
GARP Calmar Ratio Rank: 68
GARP Martin Ratio Rank: 72

NACP

NACP Risk / Return Rank: 88
NACP Sharpe Ratio Rank: 91
NACP Sortino Ratio Rank: 90
NACP Omega Ratio Rank: 87
NACP Calmar Ratio Rank: 84
NACP Martin Ratio Rank: 89

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.

GARP vs. NACP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality GARP ETF (GARP) and Impact Shares NAACP Minority Empowerment ETF (NACP). 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.

	GARP	NACP	Difference
Sharpe ratio Return per unit of total volatility	2.59	3.21	-0.62
Sortino ratio Return per unit of downside risk	3.33	4.25	-0.91
Omega ratio Gain probability vs. loss probability	1.43	1.55	-0.12
Calmar ratio Return relative to maximum drawdown	3.41	4.69	-1.27
Martin ratio Return relative to average drawdown	13.74	20.63	-6.89
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

GARP vs. NACP - Sharpe Ratio Comparison

The current GARP Sharpe Ratio is 2.59, which is comparable to the NACP Sharpe Ratio of 3.21. The chart below compares the historical Sharpe Ratios of GARP and NACP, 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

	GARP	NACP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.59	3.21	-0.62
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.95	0.93	+0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.90	0.93	-0.03

Drawdowns

GARP vs. NACP - Drawdown Comparison

The maximum GARP drawdown since its inception was -31.34%, roughly equal to the maximum NACP drawdown of -30.96%. Use the drawdown chart below to compare losses from any high point for GARP and NACP.

Drawdown Indicators

	GARP	NACP	Difference
Max Drawdown Largest peak-to-trough decline	-31.34%	-30.96%	-0.38%
Max Drawdown (1Y) Largest decline over 1 year	-13.69%	-9.65%	-4.04%
Max Drawdown (3Y) Largest decline over 3 years	-23.73%	-19.66%	-4.07%
Max Drawdown (5Y) Largest decline over 5 years	-30.61%	-27.89%	-2.72%
Current Drawdown Current decline from peak	-0.01%	0.00%	-0.01%
Average Drawdown Average peak-to-trough decline	-7.37%	-5.75%	-1.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.40%	2.19%	+1.21%

Volatility

GARP vs. NACP - Volatility Comparison

iShares MSCI USA Quality GARP ETF (GARP) has a higher volatility of 4.87% compared to Impact Shares NAACP Minority Empowerment ETF (NACP) at 4.47%. This indicates that GARP's price experiences larger fluctuations and is considered to be riskier than NACP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	GARP	NACP	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.87%	4.47%	+0.40%
Volatility (6M) Calculated over the trailing 6-month period	13.88%	11.14%	+2.74%
Volatility (1Y) Calculated over the trailing 1-year period	17.87%	14.02%	+3.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.97%	17.47%	+4.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.90%	18.70%	+5.20%

GARP vs. NACP - Expense Ratio Comparison

GARP has a 0.15% expense ratio, which is lower than NACP's 0.49% expense ratio.

Dividends

GARP vs. NACP - Dividend Comparison

GARP's dividend yield for the trailing twelve months is around 0.25%, less than NACP's 0.55% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
GARP iShares MSCI USA Quality GARP ETF	0.25%	0.31%	0.38%	0.75%	1.85%	0.67%	0.75%	0.00%	0.00%
NACP Impact Shares NAACP Minority Empowerment ETF	0.55%	0.62%	2.96%	1.28%	3.48%	3.06%	1.48%	1.22%	0.71%

Frequently Asked Questions

Can I hold both GARP and NACP in my portfolio?

GARP and NACP have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GARP or NACP?

GARP has higher volatility (4.87%) compared to NACP (4.47%). In terms of maximum drawdown, GARP dropped -31.34% vs NACP's -30.96%.

Which ETF is better, GARP or NACP?

On 5-year performance, GARP leads with 20.74% vs 16.17% for NACP. On fees, GARP is cheaper at 0.15% per year. On volatility, NACP has been the lower-risk option at 4.47%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, GARP or NACP?

Over the 5-year period, GARP has performed better with a 20.74% return vs 16.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, GARP or NACP?

GARP is cheaper with a 0.15% expense ratio, compared with 0.49% for NACP.

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

NACP has the higher dividend yield at 0.55%, compared with 0.25% for GARP.

What is the main difference between GARP and NACP?

GARP tracks MSCI USA Quality GARP Select Index, while NACP tracks Morningstar Minority Empowerment Index. They also come from different issuers: iShares and Impact Shares. Their fees differ too: 0.15% for GARP and 0.49% for NACP.

Which has better risk-adjusted returns?

NACP currently has the higher Sharpe Ratio (3.21 vs 2.59), 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.