QLTY vs. USOY

Last updated Jun 3, 2026

QLTY (GMO U.S. Quality ETF) and USOY (Defiance Oil Enhanced Options Income ETF) are both exchange-traded funds - QLTY is a Large Cap Blend Equities fund tracking the S&P 500, while USOY is a Derivative Income fund actively managed by Defiance. QLTY is passively managed, while USOY is actively managed. Over the past year, QLTY returned 28.67% vs 55.52% for USOY. At a correlation of -0.13, they often move in opposite directions. QLTY charges 0.50%/yr vs 1.22%/yr for USOY.

Performance

QLTY vs. USOY - Performance Comparison

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

Returns By Period

In the year-to-date period, QLTY achieves a 7.91% return, which is significantly lower than USOY's 59.86% return.

QLTY

• 1D: -0.17%
• 1M: 3.91%
• YTD: 7.91%
• 6M: 8.88%
• 1Y: 28.67%
• 3Y*: —
• 5Y*: —
• 10Y*: —

USOY

• 1D: 1.63%
• 1M: -1.93%
• YTD: 59.86%
• 6M: 58.33%
• 1Y: 55.52%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

QLTY vs. USOY - Yearly Performance Comparison

	2026 (YTD)	2025	2024
QLTY GMO U.S. Quality ETF	7.91%	21.26%	7.94%
USOY Defiance Oil Enhanced Options Income ETF	59.86%	-7.93%	7.27%

Correlation

The correlation between QLTY and USOY is -0.33, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.33
Correlation (All Time) Calculated using the full available price history since May 13, 2024	-0.13

The correlation between QLTY and USOY shifts across timeframes, from -0.33 (1 year) to -0.13 (all time), reflecting how their relationship changes across market environments.

Return for Risk

QLTY vs. USOY — Risk / Return Rank

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

QLTY

QLTY Risk / Return Rank: 64
QLTY Sharpe Ratio Rank: 71
QLTY Sortino Ratio Rank: 72
QLTY Omega Ratio Rank: 69
QLTY Calmar Ratio Rank: 49
QLTY Martin Ratio Rank: 57

USOY

USOY Risk / Return Rank: 56
USOY Sharpe Ratio Rank: 53
USOY Sortino Ratio Rank: 45
USOY Omega Ratio Rank: 54
USOY Calmar Ratio Rank: 79
USOY Martin Ratio Rank: 47

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.

QLTY vs. USOY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for GMO U.S. Quality ETF (QLTY) and Defiance Oil Enhanced Options Income ETF (USOY). 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.

	QLTY	USOY	Difference
Sharpe ratio Return per unit of total volatility	2.35	1.83	+0.52
Sortino ratio Return per unit of downside risk	3.33	2.25	+1.08
Omega ratio Gain probability vs. loss probability	1.42	1.34	+0.08
Calmar ratio Return relative to maximum drawdown	2.48	4.10	-1.63
Martin ratio Return relative to average drawdown	10.13	7.91	+2.23
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

QLTY vs. USOY - Sharpe Ratio Comparison

The current QLTY Sharpe Ratio is 2.35, which is comparable to the USOY Sharpe Ratio of 1.83. The chart below compares the historical Sharpe Ratios of QLTY and USOY, 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

	QLTY	USOY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.35	1.83	+0.52
Sharpe Ratio (All Time) Calculated using the full available price history	1.55	0.96	+0.59

Drawdowns

QLTY vs. USOY - Drawdown Comparison

The maximum QLTY drawdown since its inception was -17.00%, roughly equal to the maximum USOY drawdown of -17.46%. Use the drawdown chart below to compare losses from any high point for QLTY and USOY.

Drawdown Indicators

	QLTY	USOY	Difference
Max Drawdown Largest peak-to-trough decline	-17.00%	-17.46%	+0.46%
Max Drawdown (1Y) Largest decline over 1 year	-11.71%	-14.29%	+2.58%
Current Drawdown Current decline from peak	-0.22%	-6.47%	+6.25%
Average Drawdown Average peak-to-trough decline	-2.05%	-6.47%	+4.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.86%	7.42%	-4.56%

Volatility

QLTY vs. USOY - Volatility Comparison

The current volatility for GMO U.S. Quality ETF (QLTY) is 2.65%, while Defiance Oil Enhanced Options Income ETF (USOY) has a volatility of 11.94%. This indicates that QLTY experiences smaller price fluctuations and is considered to be less risky than USOY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QLTY	USOY	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.65%	11.94%	-9.29%
Volatility (6M) Calculated over the trailing 6-month period	9.24%	27.16%	-17.92%
Volatility (1Y) Calculated over the trailing 1-year period	12.25%	30.46%	-18.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.65%	26.14%	-11.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.65%	26.14%	-11.49%

QLTY vs. USOY - Expense Ratio Comparison

QLTY has a 0.50% expense ratio, which is lower than USOY's 1.22% expense ratio.

Dividends

QLTY vs. USOY - Dividend Comparison

QLTY's dividend yield for the trailing twelve months is around 0.71%, less than USOY's 54.95% yield.

Position	TTM	2025	2024	2023
QLTY GMO U.S. Quality ETF	0.71%	0.73%	0.79%	0.15%
USOY Defiance Oil Enhanced Options Income ETF	54.95%	104.32%	48.60%	0.00%

Frequently Asked Questions

Can I hold both QLTY and USOY in my portfolio?

QLTY and USOY have a correlation of -0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QLTY or USOY?

USOY has higher volatility (11.94%) compared to QLTY (2.65%). In terms of maximum drawdown, QLTY dropped -17.00% vs USOY's -17.46%.

Which ETF is better, QLTY or USOY?

On 1-year performance, USOY leads with 55.52% vs 28.67% for QLTY. On fees, QLTY is cheaper at 0.50% per year. On volatility, QLTY has been the lower-risk option at 2.65%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QLTY or USOY?

Over the 1-year period, USOY has performed better with a 55.52% return vs 28.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QLTY or USOY?

QLTY is cheaper with a 0.50% expense ratio, compared with 1.22% for USOY.

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

USOY has the higher dividend yield at 54.95%, compared with 0.71% for QLTY.

What is the main difference between QLTY and USOY?

QLTY is categorized as Large Cap Blend Equities, while USOY is Derivative Income. They also come from different issuers: GMO and Defiance. Their fees differ too: 0.50% for QLTY and 1.22% for USOY.

Which has better risk-adjusted returns?

QLTY currently has the higher Sharpe Ratio (2.35 vs 1.83), 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.