IQLT vs. VEU

Last updated Jun 3, 2026

IQLT (iShares MSCI Intl Quality Factor ETF) and VEU (Vanguard FTSE All-World ex-US ETF) are both Foreign Large Cap Equities funds - IQLT tracks the MSCI World ex USA Sector Neutral Quality Index (Net) while VEU tracks the FTSE All-World ex US Index. Both are passively managed. Over the past 10 years, IQLT returned 9.41%/yr vs 10.05%/yr for VEU. Their correlation of 0.87 suggests significant overlap in exposure. IQLT charges 0.30%/yr vs 0.04%/yr for VEU.

Performance

IQLT vs. VEU - 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 All-World ex-US ETF (VEU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IQLT achieves a 8.54% return, which is significantly lower than VEU's 15.73% return. Over the past 10 years, IQLT has underperformed VEU with an annualized return of 9.41%, while VEU has yielded a comparatively higher 10.05% annualized return.

IQLT

• 1D: 0.61%
• 1M: 1.21%
• YTD: 8.54%
• 6M: 11.18%
• 1Y: 16.76%
• 3Y*: 14.30%
• 5Y*: 7.38%
• 10Y*: 9.41%

VEU

• 1D: 0.73%
• 1M: 5.19%
• YTD: 15.73%
• 6M: 18.94%
• 1Y: 33.06%
• 3Y*: 20.01%
• 5Y*: 9.10%
• 10Y*: 10.05%

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

IQLT vs. VEU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IQLT iShares MSCI Intl Quality Factor ETF	8.54%	25.42%	1.54%	18.73%	-15.22%	12.94%	12.48%	28.18%	-10.76%	24.04%
VEU Vanguard FTSE All-World ex-US ETF	15.73%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%

Correlation

The correlation between IQLT and VEU is 0.95, 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	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.93
Correlation (All Time) Calculated using the full available price history since Jan 16, 2015	0.87

The correlation between IQLT and VEU has been stable across timeframes, ranging from 0.87 to 0.95 - a consistent structural relationship.

IQLT vs. VEU - Sectors Allocation Comparison

Sectors	IQLT	VEU
Financial Services	24.3%	23.3%
Industrials	17.3%	15.7%
Technology	11.6%	18.5%
Healthcare	9.8%	7.1%
Consumer Cyclical	8.1%	8.2%
Basic Materials	7.2%	7.1%
Consumer Defensive	6.0%	5.1%
Energy	5.9%	5.2%
Communication Services	4.3%	4.6%
Utilities	3.8%	3.2%
Real Estate	1.6%	2.0%

Return for Risk

IQLT vs. VEU — Risk / Return Rank

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

IQLT

IQLT Risk / Return Rank: 34
IQLT Sharpe Ratio Rank: 32
IQLT Sortino Ratio Rank: 32
IQLT Omega Ratio Rank: 31
IQLT Calmar Ratio Rank: 35
IQLT Martin Ratio Rank: 41

VEU

VEU Risk / Return Rank: 64
VEU Sharpe Ratio Rank: 65
VEU Sortino Ratio Rank: 64
VEU Omega Ratio Rank: 65
VEU Calmar Ratio Rank: 60
VEU Martin Ratio Rank: 64

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. VEU - 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 All-World ex-US ETF (VEU). 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	VEU	Difference
Sharpe ratio Return per unit of total volatility	1.17	2.18	-1.01
Sortino ratio Return per unit of downside risk	1.72	3.00	-1.28
Omega ratio Gain probability vs. loss probability	1.21	1.40	-0.19
Calmar ratio Return relative to maximum drawdown	1.74	3.01	-1.27
Martin ratio Return relative to average drawdown	6.63	11.72	-5.09
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. VEU - Sharpe Ratio Comparison

The current IQLT Sharpe Ratio is 1.17, which is lower than the VEU Sharpe Ratio of 2.18. The chart below compares the historical Sharpe Ratios of IQLT and VEU, 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	VEU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.17	2.18	-1.01
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.45	0.57	-0.12
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.56	0.59	-0.03
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.26	+0.24

Drawdowns

IQLT vs. VEU - Drawdown Comparison

The maximum IQLT drawdown since its inception was -32.21%, smaller than the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for IQLT and VEU.

Drawdown Indicators

	IQLT	VEU	Difference
Max Drawdown Largest peak-to-trough decline	-32.21%	-61.52%	+29.31%
Max Drawdown (1Y) Largest decline over 1 year	-10.38%	-11.43%	+1.05%
Max Drawdown (3Y) Largest decline over 3 years	-13.18%	-13.69%	+0.51%
Max Drawdown (5Y) Largest decline over 5 years	-30.24%	-29.31%	-0.93%
Max Drawdown (10Y) Largest decline over 10 years	-32.21%	-34.98%	+2.77%
Current Drawdown Current decline from peak	-1.20%	0.00%	-1.20%
Average Drawdown Average peak-to-trough decline	-6.22%	-13.14%	+6.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.72%	2.93%	-0.21%

Volatility

IQLT vs. VEU - Volatility Comparison

The current volatility for iShares MSCI Intl Quality Factor ETF (IQLT) is 4.99%, while Vanguard FTSE All-World ex-US ETF (VEU) has a volatility of 5.57%. This indicates that IQLT experiences smaller price fluctuations and is considered to be less risky than VEU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IQLT	VEU	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.99%	5.57%	-0.58%
Volatility (6M) Calculated over the trailing 6-month period	11.98%	13.01%	-1.03%
Volatility (1Y) Calculated over the trailing 1-year period	14.40%	15.28%	-0.88%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.45%	16.07%	+0.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.98%	17.21%	-0.23%

IQLT vs. VEU - Expense Ratio Comparison

IQLT has a 0.30% expense ratio, which is higher than VEU's 0.04% expense ratio.

Dividends

IQLT vs. VEU - Dividend Comparison

IQLT's dividend yield for the trailing twelve months is around 2.14%, less than VEU's 2.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IQLT iShares MSCI Intl Quality Factor ETF	2.14%	2.33%	2.87%	2.27%	3.14%	2.24%	1.61%	2.28%	2.72%	2.36%	2.91%	2.78%
VEU Vanguard FTSE All-World ex-US ETF	2.58%	3.09%	3.24%	3.32%	3.12%	3.08%	2.00%	3.10%	3.27%	2.66%	2.96%	2.95%

Frequently Asked Questions

Can I hold both IQLT and VEU in my portfolio?

With a correlation of 0.95, IQLT and VEU 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 VEU?

VEU has higher volatility (5.57%) compared to IQLT (4.99%). In terms of maximum drawdown, IQLT dropped -32.21% vs VEU's -61.52%.

Which ETF is better, IQLT or VEU?

On 10-year performance, VEU leads with 10.05% vs 9.41% for IQLT. On fees, VEU is cheaper at 0.04% per year. On volatility, IQLT has been the lower-risk option at 4.99%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IQLT or VEU?

Over the 10-year period, VEU has performed better with a 10.05% return vs 9.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IQLT or VEU?

VEU is cheaper with a 0.04% expense ratio, compared with 0.30% for IQLT.

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

VEU has the higher dividend yield at 2.58%, compared with 2.14% for IQLT.

What is the main difference between IQLT and VEU?

IQLT tracks MSCI World ex USA Sector Neutral Quality Index (Net), while VEU tracks FTSE All-World ex US Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.30% for IQLT and 0.04% for VEU.

Which has better risk-adjusted returns?

VEU currently has the higher Sharpe Ratio (2.18 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.