QLC vs. GARP

Last updated Aug 5, 2026

QLC (FlexShares US Quality Large Cap Index Fund) and GARP (iShares MSCI USA Quality GARP ETF) are both Quality Factor funds - QLC tracks the Northern Trust Quality Large Cap Index while GARP tracks the MSCI USA Quality GARP Select Index. Both are passively managed. Over the past 5 years, QLC returned 15.04%/yr vs 18.15%/yr for GARP. Their correlation of 0.88 means they have usually moved in the same direction. QLC charges 0.25%/yr vs 0.15%/yr for GARP.

Performance

QLC vs. GARP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares US Quality Large Cap Index Fund (QLC) and iShares MSCI USA Quality GARP ETF (GARP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, QLC achieves a 15.68% return, which is significantly lower than GARP's 22.34% return.

QLC

• 1D: 1.86%
• 1M: 3.97%
• 6M: 14.01%
• YTD: 15.68%
• 1Y: 29.86%
• 3Y*: 24.86%
• 5Y*: 15.04%
• 10Y*: 14.87%
• ALL TIME*: 14.63%

GARP

• 1D: 3.00%
• 1M: 3.39%
• 6M: 21.73%
• YTD: 22.34%
• 1Y: 35.42%
• 3Y*: 31.95%
• 5Y*: 18.15%
• 10Y*: —
• ALL TIME*: 20.87%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
GARP iShares MSCI USA Quality GARP ETF	$28.51M	$26.26M	$23.18M
QLC FlexShares US Quality Large Cap Index Fund	$3.27M	$4.10M	$3.64M

QLC vs. GARP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
QLC FlexShares US Quality Large Cap Index Fund	15.68%	23.26%	26.71%	26.02%	-17.21%	28.46%	11.94%
GARP iShares MSCI USA Quality GARP ETF	22.34%	21.49%	37.42%	42.86%	-26.75%	27.99%	26.51%

Correlation

The correlation between QLC and GARP is 0.91, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.91
Correlation (3Y) Balances recent behavior with more history.	0.92
Correlation (5Y) Shows whether the relationship held over a longer period.	0.93
Correlation (All Time) Calculated using the full available price history since Jan 16, 2020	0.88

The correlation between QLC and GARP has been stable across timeframes, ranging from 0.88 to 0.93 - a consistent structural relationship.

QLC vs. GARP - Sectors Allocation Comparison

Sectors	QLC	GARP
Technology	38.0%	54.7%
Financial Services	13.6%	7.9%
Communication Services	10.2%	11.0%
Healthcare	10.0%	5.4%
Consumer Cyclical	7.2%	9.1%
Industrials	5.8%	6.4%
Utilities	3.8%	1.3%
Consumer Defensive	3.5%	-
Real Estate	2.8%	0.4%
Energy	2.3%	3.0%
Basic Materials	2.1%	1.1%

Return for Risk

QLC vs. GARP — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

QLC

QLC Risk / Return Rank: 86
QLC Sharpe Ratio Rank: 87
QLC Sortino Ratio Rank: 86
QLC Omega Ratio Rank: 85
QLC Calmar Ratio Rank: 82
QLC Martin Ratio Rank: 89

GARP

GARP Risk / Return Rank: 66
GARP Sharpe Ratio Rank: 69
GARP Sortino Ratio Rank: 65
GARP Omega Ratio Rank: 63
GARP Calmar Ratio Rank: 67
GARP Martin Ratio Rank: 69

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

QLC vs. GARP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares US Quality Large Cap Index Fund (QLC) and iShares MSCI USA Quality GARP ETF (GARP). 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.

	QLC	GARP	Difference
Sharpe ratio: Return per unit of total volatility	2.27	1.77	+0.50
Sortino ratio: Return per unit of downside risk	3.13	2.40	+0.73
Omega ratio: Gain probability vs. loss probability	1.40	1.30	+0.10
Calmar ratio: Return relative to maximum drawdown	3.39	2.60	+0.79
Martin ratio: Return relative to average drawdown	15.13	9.46	+5.68

QLC vs. GARP - Sharpe Ratio Comparison

The current QLC Sharpe Ratio is 2.27, which is comparable to the GARP Sharpe Ratio of 1.77. The chart below compares the historical Sharpe Ratios of QLC and GARP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

QLC vs. GARP - Drawdown Comparison

The maximum QLC drawdown since its inception was -35.86%, which is greater than GARP's maximum drawdown of -31.34%. Use the drawdown chart below to compare losses from any high point for QLC and GARP.

Drawdown Indicators

	QLC	GARP	Difference
Max Drawdown Largest peak-to-trough decline	-35.86%	-31.34%	-4.52%
Max Drawdown (1Y) Largest decline over 1 year	-8.84%	-13.69%	+4.85%
Max Drawdown (3Y) Largest decline over 3 years	-18.49%	-23.73%	+5.24%
Max Drawdown (5Y) Largest decline over 5 years	-23.81%	-30.61%	+6.80%
Max Drawdown (10Y) Largest decline over 10 years	-35.86%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.49%	-7.26%	+2.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.98%	3.76%	-1.78%

Volatility

QLC vs. GARP - Volatility Comparison

The current volatility for FlexShares US Quality Large Cap Index Fund (QLC) is 3.89%, while iShares MSCI USA Quality GARP ETF (GARP) has a volatility of 6.40%. This indicates that QLC experiences smaller price fluctuations and is considered to be less risky than GARP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QLC	GARP	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.89%	6.40%	-2.51%
Volatility (6M) Calculated over the trailing 6-month period	10.51%	16.26%	-5.75%
Volatility (1Y) Calculated over the trailing 1-year period	13.30%	20.18%	-6.88%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.94%	22.39%	-5.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.41%	23.94%	-5.53%

QLC vs. GARP - Expense Ratio Comparison

QLC has a 0.25% expense ratio, which is higher than GARP's 0.15% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

QLC vs. GARP - Dividend Comparison

QLC's dividend yield for the trailing twelve months is around 0.90%, more than GARP's 0.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GARP iShares MSCI USA Quality GARP ETF	0.26%	0.31%	0.38%	0.75%	1.85%	0.67%	0.75%	0.00%	0.00%	0.00%	0.00%	0.00%
QLC FlexShares US Quality Large Cap Index Fund	0.90%	0.94%	1.03%	1.26%	1.46%	0.96%	1.40%	1.91%	1.82%	1.29%	1.80%	0.64%

Frequently Asked Questions

Can I hold both QLC and GARP in my portfolio?

With a correlation of 0.91, QLC and GARP 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, QLC or GARP?

GARP has higher volatility (6.40%) compared to QLC (3.89%). In terms of maximum drawdown, QLC dropped -35.86% vs GARP's -31.34%.

Which ETF is better, QLC or GARP?

On 5-year performance, GARP leads with 18.15% vs 15.04% for QLC. On fees, GARP is cheaper at 0.15% per year. On volatility, QLC has been the lower-risk option at 3.89%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QLC or GARP?

Over the 5-year period, GARP has performed better with a 18.15% return vs 15.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QLC or GARP?

GARP is cheaper with a 0.15% expense ratio, compared with 0.25% for QLC.

Which ETF pays a higher dividend yield, QLC or GARP?

QLC has the higher dividend yield at 0.90%, compared with 0.26% for GARP.

What is the main difference between QLC and GARP?

QLC tracks Northern Trust Quality Large Cap Index, while GARP tracks MSCI USA Quality GARP Select Index. They also come from different issuers: Northern Trust and iShares. Their fees differ too: 0.25% for QLC and 0.15% for GARP.

Which has better risk-adjusted returns?

QLC currently has the higher Sharpe Ratio (2.27 vs 1.77), 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.