HDV vs. QUAL

Last updated Jun 5, 2026

HDV (iShares Core High Dividend ETF) and QUAL (iShares MSCI USA Quality Factor ETF) are both exchange-traded funds - HDV is a Dividend fund tracking the Morningstar Dividend Yield Focus Index, 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, HDV returned 9.29%/yr vs 14.29%/yr for QUAL. A 0.69 correlation means they provide meaningful diversification when combined. HDV charges 0.08%/yr vs 0.15%/yr for QUAL.

Performance

HDV vs. QUAL - Performance Comparison

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

Returns By Period

In the year-to-date period, HDV achieves a 13.48% return, which is significantly higher than QUAL's 9.65% return. Over the past 10 years, HDV has underperformed QUAL with an annualized return of 9.29%, while QUAL has yielded a comparatively higher 14.29% annualized return.

HDV

• 1D: 0.70%
• 1M: 0.51%
• YTD: 13.48%
• 6M: 13.49%
• 1Y: 22.15%
• 3Y*: 15.28%
• 5Y*: 10.47%
• 10Y*: 9.29%

QUAL

• 1D: 0.79%
• 1M: 4.74%
• YTD: 9.65%
• 6M: 9.63%
• 1Y: 22.18%
• 3Y*: 20.16%
• 5Y*: 12.13%
• 10Y*: 14.29%

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

HDV vs. QUAL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HDV iShares Core High Dividend ETF	13.48%	11.90%	14.16%	1.72%	7.05%	19.45%	-6.48%	20.22%	-3.01%	13.40%
QUAL iShares MSCI USA Quality Factor ETF	9.65%	12.65%	22.29%	30.88%	-20.50%	26.94%	17.04%	33.89%	-5.70%	22.26%

Correlation

The correlation between HDV and QUAL is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.25
Correlation (3Y) Calculated over the trailing 3-year period	0.37
Correlation (5Y) Calculated over the trailing 5-year period	0.54
Correlation (10Y) Calculated over the trailing 10-year period	0.66
Correlation (All Time) Calculated using the full available price history since Jul 19, 2013	0.69

Over the past year, the correlation between HDV and QUAL has dropped to 0.25 - well below their long-term average of 0.69, suggesting their price drivers have been diverging.

HDV vs. QUAL - Sectors Allocation Comparison

Sectors	HDV	QUAL
Consumer Defensive	24.1%	4.9%
Energy	22.3%	4.0%
Healthcare	16.5%	9.0%
Financial Services	11.1%	11.5%
Utilities	9.2%	1.9%
Technology	8.2%	36.5%
Consumer Cyclical	6.1%	9.3%
Industrials	1.4%	8.2%
Basic Materials	1.2%	1.7%
Communication Services	0.1%	11.1%
Real Estate	-	1.8%

Return for Risk

HDV vs. QUAL — Risk / Return Rank

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

HDV

HDV Risk / Return Rank: 73
HDV Sharpe Ratio Rank: 71
HDV Sortino Ratio Rank: 76
HDV Omega Ratio Rank: 67
HDV Calmar Ratio Rank: 82
HDV Martin Ratio Rank: 66

QUAL

QUAL Risk / Return Rank: 56
QUAL Sharpe Ratio Rank: 57
QUAL Sortino Ratio Rank: 57
QUAL Omega Ratio Rank: 55
QUAL Calmar Ratio Rank: 51
QUAL Martin Ratio Rank: 63

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.

HDV vs. QUAL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core High Dividend ETF (HDV) 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.

	HDV	QUAL	Difference
Sharpe ratio: Return per unit of total volatility	2.29	1.88	+0.41
Sortino ratio: Return per unit of downside risk	3.38	2.68	+0.70
Omega ratio: Gain probability vs. loss probability	1.39	1.33	+0.06
Calmar ratio: Return relative to maximum drawdown	4.30	2.47	+1.83
Martin ratio: Return relative to average drawdown	11.97	11.25	+0.71
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HDV vs. QUAL - Sharpe Ratio Comparison

The current HDV Sharpe Ratio is 2.29, which is comparable to the QUAL Sharpe Ratio of 1.88. The chart below compares the historical Sharpe Ratios of HDV 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.

Sharpe Ratios by Period

	HDV	QUAL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.29	1.88	+0.41
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.82	0.70	+0.12
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.59	0.79	-0.20
Sharpe Ratio (All Time) Calculated using the full available price history	0.73	0.80	-0.08

Drawdowns

HDV vs. QUAL - Drawdown Comparison

The maximum HDV drawdown since its inception was -37.04%, which is greater than QUAL's maximum drawdown of -34.06%. Use the drawdown chart below to compare losses from any high point for HDV and QUAL.

Drawdown Indicators

	HDV	QUAL	Difference
Max Drawdown Largest peak-to-trough decline	-37.04%	-34.06%	-2.98%
Max Drawdown (1Y) Largest decline over 1 year	-5.18%	-9.03%	+3.85%
Max Drawdown (3Y) Largest decline over 3 years	-10.49%	-18.00%	+7.51%
Max Drawdown (5Y) Largest decline over 5 years	-15.42%	-28.23%	+12.81%
Max Drawdown (10Y) Largest decline over 10 years	-37.04%	-34.06%	-2.98%
Current Drawdown Current decline from peak	-1.86%	0.00%	-1.86%
Average Drawdown Average peak-to-trough decline	-3.09%	-4.10%	+1.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.86%	1.98%	-0.12%

Volatility

HDV vs. QUAL - Volatility Comparison

iShares Core High Dividend ETF (HDV) has a higher volatility of 3.23% compared to iShares MSCI USA Quality Factor ETF (QUAL) at 2.54%. This indicates that HDV'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.

Volatility by Period

	HDV	QUAL	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.23%	2.54%	+0.69%
Volatility (6M) Calculated over the trailing 6-month period	7.54%	9.06%	-1.52%
Volatility (1Y) Calculated over the trailing 1-year period	9.75%	11.84%	-2.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.82%	17.33%	-4.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.73%	18.09%	-2.36%

HDV vs. QUAL - Expense Ratio Comparison

HDV has a 0.08% expense ratio, which is lower than QUAL's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

HDV vs. QUAL - Dividend Comparison

HDV's dividend yield for the trailing twelve months is around 2.89%, more than QUAL's 0.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HDV iShares Core High Dividend ETF	2.89%	3.22%	3.67%	3.82%	3.56%	3.47%	4.07%	3.27%	3.67%	3.27%	3.28%	3.92%
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

Can I hold both HDV and QUAL in my portfolio?

HDV and QUAL have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HDV or QUAL?

HDV has higher volatility (3.23%) compared to QUAL (2.54%). In terms of maximum drawdown, HDV dropped -37.04% vs QUAL's -34.06%.

Which ETF is better, HDV or QUAL?

On 10-year performance, QUAL leads with 14.29% vs 9.29% for HDV. On fees, HDV is cheaper at 0.08% per year. On volatility, QUAL has been the lower-risk option at 2.54%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HDV or QUAL?

Over the 10-year period, QUAL has performed better with a 14.29% return vs 9.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HDV or QUAL?

HDV is cheaper with a 0.08% expense ratio, compared with 0.15% for QUAL.

Which ETF pays a higher dividend yield, HDV or QUAL?

HDV has the higher dividend yield at 2.89%, compared with 0.87% for QUAL.

What is the main difference between HDV and QUAL?

HDV is categorized as Dividend, while QUAL is Large Cap Blend Equities. HDV tracks Morningstar Dividend Yield Focus Index, while QUAL tracks MSCI USA Sector Neutral Quality Index. Their fees differ too: 0.08% for HDV and 0.15% for QUAL.

Which has better risk-adjusted returns?

HDV currently has the higher Sharpe Ratio (2.29 vs 1.88), 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.