IQLT vs. VEA

Last updated Jun 4, 2026

IQLT (iShares MSCI Intl Quality Factor ETF) and VEA (Vanguard FTSE Developed Markets ETF) are both Foreign Large Cap Equities funds - IQLT tracks the MSCI World ex USA Sector Neutral Quality Index (Net) while VEA tracks the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, IQLT returned 9.31%/yr vs 10.17%/yr for VEA. Their correlation of 0.89 suggests significant overlap in exposure. IQLT charges 0.30%/yr vs 0.03%/yr for VEA.

Performance

IQLT vs. VEA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Intl Quality Factor ETF (IQLT) and Vanguard FTSE Developed Markets ETF (VEA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IQLT achieves a 7.55% return, which is significantly lower than VEA's 14.92% return. Over the past 10 years, IQLT has underperformed VEA with an annualized return of 9.31%, while VEA has yielded a comparatively higher 10.17% annualized return.

IQLT

• 1D: -0.91%
• 1M: 1.73%
• YTD: 7.55%
• 6M: 9.41%
• 1Y: 16.72%
• 3Y*: 13.95%
• 5Y*: 6.96%
• 10Y*: 9.31%

VEA

• 1D: -0.90%
• 1M: 5.54%
• YTD: 14.92%
• 6M: 18.15%
• 1Y: 32.48%
• 3Y*: 19.77%
• 5Y*: 9.60%
• 10Y*: 10.17%

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

IQLT vs. VEA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IQLT iShares MSCI Intl Quality Factor ETF	7.55%	25.42%	1.54%	18.73%	-15.22%	12.94%	12.48%	28.18%	-10.76%	24.04%
VEA Vanguard FTSE Developed Markets ETF	14.92%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%

Correlation

The correlation between IQLT and VEA is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Jan 16, 2015	0.89

The correlation between IQLT and VEA has been stable across timeframes, ranging from 0.89 to 0.97 - a consistent structural relationship.

IQLT vs. VEA - Sectors Allocation Comparison

Sectors	IQLT	VEA
Financial Services	24.3%	23.3%
Industrials	17.3%	19.2%
Technology	11.6%	13.8%
Healthcare	9.8%	8.2%
Consumer Cyclical	8.1%	7.5%
Basic Materials	7.2%	7.5%
Consumer Defensive	6.0%	5.6%
Energy	5.9%	5.4%
Communication Services	4.3%	3.4%
Utilities	3.8%	3.3%
Real Estate	1.6%	2.7%

Return for Risk

IQLT vs. VEA — Risk / Return Rank

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

IQLT

IQLT Risk / Return Rank: 33
IQLT Sharpe Ratio Rank: 32
IQLT Sortino Ratio Rank: 31
IQLT Omega Ratio Rank: 30
IQLT Calmar Ratio Rank: 32
IQLT Martin Ratio Rank: 38

VEA

VEA Risk / Return Rank: 59
VEA Sharpe Ratio Rank: 60
VEA Sortino Ratio Rank: 60
VEA Omega Ratio Rank: 60
VEA Calmar Ratio Rank: 55
VEA Martin Ratio Rank: 60

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.

IQLT vs. VEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Intl Quality Factor ETF (IQLT) and Vanguard FTSE Developed Markets ETF (VEA). 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.

	IQLT	VEA	Difference
Sharpe ratio Return per unit of total volatility	1.17	2.09	-0.92
Sortino ratio Return per unit of downside risk	1.72	2.87	-1.15
Omega ratio Gain probability vs. loss probability	1.20	1.38	-0.17
Calmar ratio Return relative to maximum drawdown	1.62	2.81	-1.19
Martin ratio Return relative to average drawdown	6.16	10.94	-4.78
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IQLT vs. VEA - Sharpe Ratio Comparison

The current IQLT Sharpe Ratio is 1.17, which is lower than the VEA Sharpe Ratio of 2.09. The chart below compares the historical Sharpe Ratios of IQLT and VEA, 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

	IQLT	VEA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.17	2.09	-0.92
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.43	0.58	-0.16
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.55	0.59	-0.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.49	0.25	+0.25

Drawdowns

IQLT vs. VEA - Drawdown Comparison

The maximum IQLT drawdown since its inception was -32.21%, smaller than the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for IQLT and VEA.

Drawdown Indicators

	IQLT	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-32.21%	-60.68%	+28.47%
Max Drawdown (1Y) Largest decline over 1 year	-10.38%	-11.63%	+1.25%
Max Drawdown (3Y) Largest decline over 3 years	-13.18%	-13.45%	+0.27%
Max Drawdown (5Y) Largest decline over 5 years	-30.24%	-29.71%	-0.53%
Max Drawdown (10Y) Largest decline over 10 years	-32.21%	-35.73%	+3.52%
Current Drawdown Current decline from peak	-2.10%	-0.90%	-1.20%
Average Drawdown Average peak-to-trough decline	-6.22%	-13.29%	+7.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.72%	2.98%	-0.26%

Volatility

IQLT vs. VEA - Volatility Comparison

The current volatility for iShares MSCI Intl Quality Factor ETF (IQLT) is 4.86%, while Vanguard FTSE Developed Markets ETF (VEA) has a volatility of 5.66%. This indicates that IQLT experiences smaller price fluctuations and is considered to be less risky than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IQLT	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.86%	5.66%	-0.80%
Volatility (6M) Calculated over the trailing 6-month period	12.01%	13.32%	-1.31%
Volatility (1Y) Calculated over the trailing 1-year period	14.40%	15.66%	-1.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.45%	16.55%	-0.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.98%	17.36%	-0.38%

IQLT vs. VEA - Expense Ratio Comparison

IQLT has a 0.30% expense ratio, which is higher than VEA's 0.03% expense ratio.

Dividends

IQLT vs. VEA - Dividend Comparison

IQLT's dividend yield for the trailing twelve months is around 2.16%, less than VEA's 2.62% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IQLT iShares MSCI Intl Quality Factor ETF	2.16%	2.33%	2.87%	2.27%	3.14%	2.24%	1.61%	2.28%	2.72%	2.36%	2.91%	2.78%
VEA Vanguard FTSE Developed Markets ETF	2.62%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%

Frequently Asked Questions

Can I hold both IQLT and VEA in my portfolio?

With a correlation of 0.96, IQLT and VEA move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, IQLT or VEA?

VEA has higher volatility (5.66%) compared to IQLT (4.86%). In terms of maximum drawdown, IQLT dropped -32.21% vs VEA's -60.68%.

Which ETF is better, IQLT or VEA?

On 10-year performance, VEA leads with 10.17% vs 9.31% for IQLT. On fees, VEA is cheaper at 0.03% per year. On volatility, IQLT has been the lower-risk option at 4.86%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IQLT or VEA?

Over the 10-year period, VEA has performed better with a 10.17% return vs 9.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IQLT or VEA?

VEA is cheaper with a 0.03% expense ratio, compared with 0.30% for IQLT.

Which ETF pays a higher dividend yield, IQLT or VEA?

VEA has the higher dividend yield at 2.62%, compared with 2.16% for IQLT.

What is the main difference between IQLT and VEA?

IQLT tracks MSCI World ex USA Sector Neutral Quality Index (Net), while VEA tracks FTSE Developed All Cap ex US Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.30% for IQLT and 0.03% for VEA.

Which has better risk-adjusted returns?

VEA currently has the higher Sharpe Ratio (2.09 vs 1.17), 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.