QLTI vs. QLTY

Last updated Aug 2, 2026

QLTI (GMO International Quality ETF) and QLTY (GMO U.S. Quality ETF) are both Quality Factor funds from GMO. QLTI is actively managed, while QLTY is passively managed. Over the past year, QLTI returned 11.92% vs 25.15% for QLTY. Their 0.68 correlation means they have sometimes moved together and sometimes differently. QLTI charges 0.60%/yr vs 0.50%/yr for QLTY.

Performance

QLTI vs. QLTY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in GMO International Quality ETF (QLTI) and GMO U.S. Quality ETF (QLTY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, QLTI achieves a 1.88% return, which is significantly lower than QLTY's 9.02% return.

QLTI

• 1D: -0.75%
• 1M: -0.65%
• 6M: -0.26%
• YTD: 1.88%
• 1Y: 11.92%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 5.50%

QLTY

• 1D: 0.70%
• 1M: 0.19%
• 6M: 6.82%
• YTD: 9.02%
• 1Y: 25.15%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 21.22%

*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)
QLTI GMO International Quality ETF	$1.20M	$688.26K	$717.87K
QLTY GMO U.S. Quality ETF	$14.32M	$16.07M	$19.07M

QLTI vs. QLTY - Yearly Performance Comparison

	2026 (YTD)	2025	2024
QLTI GMO International Quality ETF	1.88%	17.12%	-7.94%
QLTY GMO U.S. Quality ETF	9.02%	21.26%	-0.15%

Correlation

The correlation between QLTI and QLTY is 0.74, 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.	0.74
Correlation (All Time) Calculated using the full available price history since Oct 29, 2024	0.68

The correlation between QLTI and QLTY has been stable across timeframes, ranging from 0.68 to 0.74 - a consistent structural relationship.

Return for Risk

QLTI vs. QLTY — Risk / Return Rank

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

QLTI

QLTI Risk / Return Rank: 29
QLTI Sharpe Ratio Rank: 31
QLTI Sortino Ratio Rank: 31
QLTI Omega Ratio Rank: 29
QLTI Calmar Ratio Rank: 27
QLTI Martin Ratio Rank: 28

QLTY

QLTY Risk / Return Rank: 73
QLTY Sharpe Ratio Rank: 81
QLTY Sortino Ratio Rank: 81
QLTY Omega Ratio Rank: 78
QLTY Calmar Ratio Rank: 57
QLTY Martin Ratio Rank: 67

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.

QLTI vs. QLTY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for GMO International Quality ETF (QLTI) and GMO U.S. Quality ETF (QLTY). 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.

	QLTI	QLTY	Difference
Sharpe ratio: Return per unit of total volatility	0.74	1.86	-1.12
Sortino ratio: Return per unit of downside risk	1.17	2.62	-1.46
Omega ratio: Gain probability vs. loss probability	1.14	1.33	-0.19
Calmar ratio: Return relative to maximum drawdown	0.84	2.01	-1.17
Martin ratio: Return relative to average drawdown	2.33	8.13	-5.80

QLTI vs. QLTY - Sharpe Ratio Comparison

The current QLTI Sharpe Ratio is 0.74, which is lower than the QLTY Sharpe Ratio of 1.86. The chart below compares the historical Sharpe Ratios of QLTI and QLTY, 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

QLTI vs. QLTY - Drawdown Comparison

The maximum QLTI drawdown since its inception was -14.82%, smaller than the maximum QLTY drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for QLTI and QLTY.

Drawdown Indicators

	QLTI	QLTY	Difference
Max Drawdown Largest peak-to-trough decline	-14.82%	-17.00%	+2.18%
Max Drawdown (1Y) Largest decline over 1 year	-13.72%	-11.71%	-2.01%
Current Drawdown Current decline from peak	-3.70%	-0.41%	-3.29%
Average Drawdown Average peak-to-trough decline	-3.88%	-2.00%	-1.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.94%	2.90%	+2.04%

Volatility

QLTI vs. QLTY - Volatility Comparison

GMO International Quality ETF (QLTI) has a higher volatility of 4.60% compared to GMO U.S. Quality ETF (QLTY) at 2.90%. This indicates that QLTI's price experiences larger fluctuations and is considered to be riskier than QLTY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QLTI	QLTY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.60%	2.90%	+1.70%
Volatility (6M) Calculated over the trailing 6-month period	13.28%	9.63%	+3.65%
Volatility (1Y) Calculated over the trailing 1-year period	15.65%	12.76%	+2.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.60%	14.52%	+2.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.60%	14.52%	+2.08%

QLTI vs. QLTY - Expense Ratio Comparison

QLTI has a 0.60% expense ratio, which is higher than QLTY's 0.50% expense ratio.

Dividends

QLTI vs. QLTY - Dividend Comparison

QLTI's dividend yield for the trailing twelve months is around 0.60%, less than QLTY's 0.72% yield.

Position	TTM	2025	2024	2023
QLTI GMO International Quality ETF	0.60%	0.52%	0.19%	0.00%
QLTY GMO U.S. Quality ETF	0.72%	0.73%	0.79%	0.15%

Frequently Asked Questions

Can I hold both QLTI and QLTY in my portfolio?

QLTI and QLTY have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QLTI or QLTY?

QLTI has higher volatility (4.60%) compared to QLTY (2.90%). In terms of maximum drawdown, QLTI dropped -14.82% vs QLTY's -17.00%.

Which ETF is better, QLTI or QLTY?

On 1-year performance, QLTY leads with 25.15% vs 11.92% for QLTI. On fees, QLTY is cheaper at 0.50% per year. On volatility, QLTY has been the lower-risk option at 2.90%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QLTI or QLTY?

Over the 1-year period, QLTY has performed better with a 25.15% return vs 11.92%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QLTI or QLTY?

QLTY is cheaper with a 0.50% expense ratio, compared with 0.60% for QLTI.

Which ETF pays a higher dividend yield, QLTI or QLTY?

QLTY has the higher dividend yield at 0.72%, compared with 0.60% for QLTI.

What is the main difference between QLTI and QLTY?

Their fees differ too: 0.60% for QLTI and 0.50% for QLTY.

Which has better risk-adjusted returns?

QLTY currently has the higher Sharpe Ratio (1.86 vs 0.74), 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.