GARP vs. QUAL
Compare and contrast key facts about iShares MSCI USA Quality GARP ETF (GARP) and iShares Edge MSCI USA Quality Factor ETF (QUAL).
GARP and QUAL are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. GARP is a passively managed fund by iShares that tracks the performance of the MSCI USA Quality GARP Select Index. It was launched on Jan 14, 2020. QUAL is a passively managed fund by iShares that tracks the performance of the MSCI USA Quality Index. It was launched on Jul 16, 2013. Both GARP and QUAL are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: GARP or QUAL.
Key characteristics
| GARP | QUAL | |
|---|---|---|
| YTD Return | 37.12% | 26.02% |
| 1Y Return | 48.28% | 35.29% |
| 3Y Return (Ann) | 13.22% | 9.63% |
| Sharpe Ratio | 2.70 | 2.79 |
| Sortino Ratio | 3.46 | 3.84 |
| Omega Ratio | 1.49 | 1.52 |
| Calmar Ratio | 3.60 | 4.59 |
| Martin Ratio | 13.80 | 17.58 |
| Ulcer Index | 3.50% | 1.99% |
| Daily Std Dev | 17.92% | 12.57% |
| Max Drawdown | -31.34% | -34.06% |
| Current Drawdown | -0.37% | -0.19% |
Correlation
The correlation between GARP and QUAL is 0.87, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
GARP vs. QUAL - Performance Comparison
In the year-to-date period, GARP achieves a 37.12% return, which is significantly higher than QUAL's 26.02% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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GARP vs. QUAL - Expense Ratio Comparison
Both GARP and QUAL have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
GARP vs. QUAL - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality GARP ETF (GARP) and iShares Edge 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.
Dividends
GARP vs. QUAL - Dividend Comparison
GARP's dividend yield for the trailing twelve months is around 0.36%, less than QUAL's 0.98% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GARP iShares MSCI USA Quality GARP ETF | 0.36% | 0.75% | 1.85% | 0.67% | 0.75% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
QUAL iShares Edge MSCI USA Quality Factor ETF | 0.98% | 1.23% | 1.59% | 1.20% | 1.39% | 1.60% | 2.00% | 1.76% | 1.96% | 1.63% | 1.35% | 0.63% |
Drawdowns
GARP vs. QUAL - Drawdown Comparison
The maximum GARP drawdown since its inception was -31.34%, smaller than the maximum QUAL drawdown of -34.06%. Use the drawdown chart below to compare losses from any high point for GARP and QUAL. For additional features, visit the drawdowns tool.
Volatility
GARP vs. QUAL - Volatility Comparison
iShares MSCI USA Quality GARP ETF (GARP) has a higher volatility of 5.92% compared to iShares Edge MSCI USA Quality Factor ETF (QUAL) at 3.63%. This indicates that GARP'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.