QLC vs. VFQY

Last updated Aug 5, 2026

QLC (FlexShares US Quality Large Cap Index Fund) and VFQY (Vanguard U.S. Quality Factor ETF) are both Quality Factor funds. QLC is passively managed, while VFQY is actively managed. Over the past 5 years, QLC returned 15.04%/yr vs 9.39%/yr for VFQY. Their correlation of 0.88 means they have usually moved in the same direction. QLC charges 0.25%/yr vs 0.13%/yr for VFQY.

Performance

QLC vs. VFQY - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with QLC having a 15.68% return and VFQY slightly higher at 16.17%.

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%

VFQY

• 1D: 1.73%
• 1M: 3.98%
• 6M: 13.82%
• YTD: 16.17%
• 1Y: 23.50%
• 3Y*: 16.38%
• 5Y*: 9.39%
• 10Y*: —
• ALL TIME*: 11.84%

*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)
QLC FlexShares US Quality Large Cap Index Fund	$3.27M	$4.10M	$3.64M
VFQY Vanguard U.S. Quality Factor ETF	$986.10K	$994.81K	$1.07M

QLC vs. VFQY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
QLC FlexShares US Quality Large Cap Index Fund	15.68%	23.26%	26.71%	26.02%	-17.21%	28.46%	13.64%	24.51%	-8.83%
VFQY Vanguard U.S. Quality Factor ETF	16.17%	10.24%	12.93%	22.48%	-15.74%	27.96%	16.97%	25.75%	-8.19%

Correlation

The correlation between QLC and VFQY is 0.77, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.77
Correlation (3Y) Balances recent behavior with more history.	0.84
Correlation (5Y) Shows whether the relationship held over a longer period.	0.89
Correlation (All Time) Calculated using the full available price history since Feb 15, 2018	0.88

The correlation between QLC and VFQY shifts across timeframes, from 0.77 (1 year) to 0.89 (5 years), reflecting how their relationship changes across market environments.

QLC vs. VFQY - Sectors Allocation Comparison

Sectors	QLC	VFQY
Technology	38.0%	25.8%
Financial Services	13.6%	18.9%
Communication Services	10.2%	2.8%
Healthcare	10.0%	8.9%
Consumer Cyclical	7.2%	13.3%
Industrials	5.8%	16.8%
Utilities	3.8%	-
Consumer Defensive	3.5%	9.2%
Real Estate	2.8%	-
Energy	2.3%	2.2%
Basic Materials	2.1%	2.2%

Return for Risk

QLC vs. VFQY — 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

VFQY

VFQY Risk / Return Rank: 67
VFQY Sharpe Ratio Rank: 68
VFQY Sortino Ratio Rank: 70
VFQY Omega Ratio Rank: 63
VFQY Calmar Ratio Rank: 66
VFQY Martin Ratio Rank: 70

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. VFQY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares US Quality Large Cap Index Fund (QLC) and Vanguard U.S. Quality Factor ETF (VFQY). 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	VFQY	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	2.55	+0.57
Omega ratio: Gain probability vs. loss probability	1.40	1.30	+0.10
Calmar ratio: Return relative to maximum drawdown	3.39	2.59	+0.80
Martin ratio: Return relative to average drawdown	15.13	9.77	+5.36

QLC vs. VFQY - Sharpe Ratio Comparison

The current QLC Sharpe Ratio is 2.27, which is comparable to the VFQY Sharpe Ratio of 1.77. The chart below compares the historical Sharpe Ratios of QLC and VFQY, 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. VFQY - Drawdown Comparison

The maximum QLC drawdown since its inception was -35.86%, roughly equal to the maximum VFQY drawdown of -37.41%. Use the drawdown chart below to compare losses from any high point for QLC and VFQY.

Drawdown Indicators

	QLC	VFQY	Difference
Max Drawdown Largest peak-to-trough decline	-35.86%	-37.41%	+1.55%
Max Drawdown (1Y) Largest decline over 1 year	-8.84%	-9.12%	+0.28%
Max Drawdown (3Y) Largest decline over 3 years	-18.49%	-20.67%	+2.18%
Max Drawdown (5Y) Largest decline over 5 years	-23.81%	-25.93%	+2.12%
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%	-6.56%	+2.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.98%	2.41%	-0.43%

Volatility

QLC vs. VFQY - Volatility Comparison

FlexShares US Quality Large Cap Index Fund (QLC) has a higher volatility of 3.89% compared to Vanguard U.S. Quality Factor ETF (VFQY) at 3.49%. This indicates that QLC's price experiences larger fluctuations and is considered to be riskier than VFQY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QLC	VFQY	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.89%	3.49%	+0.40%
Volatility (6M) Calculated over the trailing 6-month period	10.51%	9.65%	+0.86%
Volatility (1Y) Calculated over the trailing 1-year period	13.30%	13.45%	-0.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.94%	18.30%	-1.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.41%	20.73%	-2.32%

QLC vs. VFQY - Expense Ratio Comparison

QLC has a 0.25% expense ratio, which is higher than VFQY's 0.13% 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. VFQY - Dividend Comparison

QLC's dividend yield for the trailing twelve months is around 0.90%, less than VFQY's 1.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VFQY Vanguard U.S. Quality Factor ETF	1.02%	1.17%	1.34%	1.38%	1.43%	0.98%	1.22%	1.34%	1.31%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both QLC and VFQY in my portfolio?

QLC and VFQY have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QLC or VFQY?

QLC has higher volatility (3.89%) compared to VFQY (3.49%). In terms of maximum drawdown, QLC dropped -35.86% vs VFQY's -37.41%.

Which ETF is better, QLC or VFQY?

On 5-year performance, QLC leads with 15.04% vs 9.39% for VFQY. On fees, VFQY is cheaper at 0.13% per year. On volatility, VFQY has been the lower-risk option at 3.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QLC or VFQY?

Over the 5-year period, QLC has performed better with a 15.04% return vs 9.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QLC or VFQY?

VFQY is cheaper with a 0.13% expense ratio, compared with 0.25% for QLC.

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

VFQY has the higher dividend yield at 1.02%, compared with 0.90% for QLC.

What is the main difference between QLC and VFQY?

They also come from different issuers: Northern Trust and Vanguard. Their fees differ too: 0.25% for QLC and 0.13% for VFQY.

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.