IEI vs. QUAL
IEI (iShares 3-7 Year Treasury Bond ETF) and QUAL (iShares MSCI USA Quality Factor ETF) are both exchange-traded funds - IEI is a Government Bonds fund tracking the ICE U.S. Treasury 3-7 Year Bond 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, IEI returned 1.24%/yr vs 14.46%/yr for QUAL. At a correlation of -0.11, they often move in opposite directions. Both charge a 0.15% expense ratio.
Performance
IEI vs. QUAL - Performance Comparison
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Returns By Period
In the year-to-date period, IEI achieves a -0.30% return, which is significantly lower than QUAL's 9.44% return. Over the past 10 years, IEI has underperformed QUAL with an annualized return of 1.24%, while QUAL has yielded a comparatively higher 14.46% annualized return.
IEI
- 1D
- -0.12%
- 1M
- 0.10%
- YTD
- -0.30%
- 6M
- -0.00%
- 1Y
- 3.16%
- 3Y*
- 3.77%
- 5Y*
- 0.21%
- 10Y*
- 1.24%
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%
IEI vs. QUAL - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IEI iShares 3-7 Year Treasury Bond ETF | -0.30% | 6.96% | 1.81% | 4.42% | -9.51% | -2.54% | 6.95% | 5.71% | 1.36% | 1.22% |
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 IEI and QUAL is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.23 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.14 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.11 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.05 |
Correlation (All Time) Calculated using the full available price history since Jul 18, 2013 | -0.11 |
The correlation between IEI and QUAL shifts across timeframes, from -0.11 (all time) to 0.23 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
IEI vs. QUAL — Risk / Return Rank
IEI
QUAL
IEI vs. QUAL - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 3-7 Year Treasury Bond ETF (IEI) 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.
| IEI | QUAL | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.74 | ||
| Sortino ratioReturn per unit of downside risk | -0.94 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.31 | -0.13 |
| Calmar ratioReturn relative to maximum drawdown | 1.19 | 2.32 | -1.13 |
| Martin ratioReturn relative to average drawdown | 3.35 | 10.60 | -7.25 |
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Drawdowns
IEI vs. QUAL - Drawdown Comparison
The maximum IEI drawdown since its inception was -14.60%, smaller than the maximum QUAL drawdown of -34.06%. Use the drawdown chart below to compare losses from any high point for IEI and QUAL.
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Drawdown Indicators
| IEI | QUAL | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.60% | -34.06% | +19.46% |
Max Drawdown (1Y)Largest decline over 1 year | -2.50% | -9.03% | +6.53% |
Max Drawdown (3Y)Largest decline over 3 years | -3.66% | -18.00% | +14.34% |
Max Drawdown (5Y)Largest decline over 5 years | -13.88% | -28.23% | +14.35% |
Max Drawdown (10Y)Largest decline over 10 years | -14.60% | -34.06% | +19.46% |
Current DrawdownCurrent decline from peak | -1.74% | -0.19% | -1.55% |
Average DrawdownAverage peak-to-trough decline | -2.67% | -4.10% | +1.43% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.89% | 1.99% | -1.10% |
Volatility
IEI vs. QUAL - Volatility Comparison
The current volatility for iShares 3-7 Year Treasury Bond ETF (IEI) is 0.98%, while iShares MSCI USA Quality Factor ETF (QUAL) has a volatility of 3.63%. This indicates that IEI experiences smaller price fluctuations and is considered to be less risky 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
| IEI | QUAL | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.98% | 3.63% | -2.65% |
Volatility (6M)Calculated over the trailing 6-month period | 2.18% | 9.43% | -7.25% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.00% | 12.10% | -9.10% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.78% | 17.36% | -12.58% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.93% | 18.11% | -14.18% |
IEI vs. QUAL - Expense Ratio Comparison
Both IEI 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%.
Dividends
IEI vs. QUAL - Dividend Comparison
IEI's dividend yield for the trailing twelve months is around 3.64%, more than QUAL's 0.87% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEI iShares 3-7 Year Treasury Bond ETF | 3.64% | 3.48% | 3.18% | 2.36% | 1.37% | 0.73% | 1.12% | 2.01% | 1.95% | 1.51% | 1.33% | 1.39% |
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
IEI and QUAL have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
QUAL has higher volatility (3.63%) compared to IEI (0.98%). In terms of maximum drawdown, IEI dropped -14.60% vs QUAL's -34.06%.
On 10-year performance, QUAL leads with 14.46% vs 1.24% for IEI. Both ETFs have the same 0.15% expense ratio. On volatility, IEI has been the lower-risk option at 0.98%. 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 1.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IEI and QUAL have the same expense ratio: 0.15% per year.
IEI has the higher dividend yield at 3.64%, compared with 0.87% for QUAL.
IEI is categorized as Government Bonds, while QUAL is Large Cap Blend Equities. IEI tracks ICE U.S. Treasury 3-7 Year Bond Index, while QUAL tracks MSCI USA Sector Neutral Quality Index.
QUAL currently has the higher Sharpe Ratio (1.74 vs 1.00), 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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