QLVE vs. GARP

Last updated Aug 2, 2026

QLVE (FlexShares Emerging Markets Quality Low Volatility Index Fund) and GARP (iShares MSCI USA Quality GARP ETF) are both Quality Factor funds - QLVE tracks the Northern Trust Emerging Markets Quality Low Volatility Index while GARP tracks the MSCI USA Quality GARP Select Index. Both are passively managed. Over the past 5 years, QLVE returned 7.60%/yr vs 17.48%/yr for GARP. Their 0.64 correlation means they have sometimes moved together and sometimes differently. QLVE charges 0.40%/yr vs 0.15%/yr for GARP.

Performance

QLVE vs. GARP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Emerging Markets Quality Low Volatility Index Fund (QLVE) 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, QLVE achieves a 12.92% return, which is significantly lower than GARP's 16.89% return.

QLVE

• 1D: -0.06%
• 1M: 0.53%
• 6M: 7.16%
• YTD: 12.92%
• 1Y: 23.59%
• 3Y*: 15.27%
• 5Y*: 7.60%
• 10Y*: —
• ALL TIME*: 6.66%

GARP

• 1D: 0.66%
• 1M: -1.22%
• 6M: 14.45%
• YTD: 16.89%
• 1Y: 31.75%
• 3Y*: 28.85%
• 5Y*: 17.48%
• 10Y*: —
• ALL TIME*: 20.07%

*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	$25.65M	$25.43M	$23.00M
QLVE FlexShares Emerging Markets Quality Low Volatility Index Fund	$2.76K	$7.65K	$20.86K

QLVE vs. GARP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
QLVE FlexShares Emerging Markets Quality Low Volatility Index Fund	12.92%	21.87%	10.17%	8.53%	-13.10%	0.90%	3.19%
GARP iShares MSCI USA Quality GARP ETF	16.89%	21.49%	37.42%	42.86%	-26.75%	27.99%	26.51%

Correlation

The correlation between QLVE and GARP 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.	0.65
Correlation (5Y) Shows whether the relationship held over a longer period.	0.65
Correlation (All Time) Calculated using the full available price history since Jan 16, 2020	0.64

The correlation between QLVE and GARP shifts across timeframes, from 0.64 (all time) to 0.77 (1 year), reflecting how their relationship changes across market environments.

QLVE vs. GARP - Sectors Allocation Comparison

Sectors	QLVE	GARP
Technology	35.7%	54.7%
Financial Services	14.3%	7.9%
Communication Services	10.0%	11.0%
Energy	6.3%	3.0%
Consumer Defensive	6.3%	-
Consumer Cyclical	4.9%	9.1%
Healthcare	4.8%	5.4%
Industrials	3.3%	6.4%
Utilities	2.7%	1.3%
Basic Materials	1.9%	1.1%
Real Estate	0.7%	0.4%

Return for Risk

QLVE vs. GARP — Risk / Return Rank

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

QLVE

QLVE Risk / Return Rank: 52
QLVE Sharpe Ratio Rank: 48
QLVE Sortino Ratio Rank: 47
QLVE Omega Ratio Rank: 53
QLVE Calmar Ratio Rank: 55
QLVE Martin Ratio Rank: 55

GARP

GARP Risk / Return Rank: 64
GARP Sharpe Ratio Rank: 66
GARP Sortino Ratio Rank: 62
GARP Omega Ratio Rank: 60
GARP Calmar Ratio Rank: 63
GARP Martin Ratio Rank: 66

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.

QLVE vs. GARP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Emerging Markets Quality Low Volatility Index Fund (QLVE) 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.

	QLVE	GARP	Difference
Sharpe ratio: Return per unit of total volatility	1.18	1.50	-0.33
Sortino ratio: Return per unit of downside risk	1.73	2.08	-0.34
Omega ratio: Gain probability vs. loss probability	1.24	1.26	-0.02
Calmar ratio: Return relative to maximum drawdown	1.98	2.19	-0.22
Martin ratio: Return relative to average drawdown	6.52	7.99	-1.48

QLVE vs. GARP - Sharpe Ratio Comparison

The current QLVE Sharpe Ratio is 1.18, which is comparable to the GARP Sharpe Ratio of 1.50. The chart below compares the historical Sharpe Ratios of QLVE 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

QLVE vs. GARP - Drawdown Comparison

The maximum QLVE drawdown since its inception was -29.96%, roughly equal to the maximum GARP drawdown of -31.34%. Use the drawdown chart below to compare losses from any high point for QLVE and GARP.

Drawdown Indicators

	QLVE	GARP	Difference
Max Drawdown Largest peak-to-trough decline	-29.96%	-31.34%	+1.38%
Max Drawdown (1Y) Largest decline over 1 year	-11.60%	-13.69%	+2.09%
Max Drawdown (3Y) Largest decline over 3 years	-13.29%	-23.73%	+10.44%
Max Drawdown (5Y) Largest decline over 5 years	-23.60%	-30.61%	+7.01%
Current Drawdown Current decline from peak	-5.59%	-4.34%	-1.25%
Average Drawdown Average peak-to-trough decline	-8.21%	-7.27%	-0.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.51%	3.75%	-0.24%

Volatility

QLVE vs. GARP - Volatility Comparison

FlexShares Emerging Markets Quality Low Volatility Index Fund (QLVE) has a higher volatility of 6.73% compared to iShares MSCI USA Quality GARP ETF (GARP) at 5.68%. This indicates that QLVE's price experiences larger fluctuations and is considered to be riskier than GARP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QLVE	GARP	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.73%	5.68%	+1.05%
Volatility (6M) Calculated over the trailing 6-month period	17.12%	16.18%	+0.94%
Volatility (1Y) Calculated over the trailing 1-year period	19.46%	20.02%	-0.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.20%	22.34%	-8.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.14%	23.92%	-7.78%

QLVE vs. GARP - Expense Ratio Comparison

QLVE has a 0.40% expense ratio, which is higher than GARP's 0.15% expense ratio.

Dividends

QLVE vs. GARP - Dividend Comparison

QLVE's dividend yield for the trailing twelve months is around 2.68%, more than GARP's 0.27% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
GARP iShares MSCI USA Quality GARP ETF	0.27%	0.31%	0.38%	0.75%	1.85%	0.67%	0.75%	0.00%
QLVE FlexShares Emerging Markets Quality Low Volatility Index Fund	2.68%	3.14%	3.11%	3.00%	2.48%	2.57%	1.66%	1.27%

Frequently Asked Questions

Can I hold both QLVE and GARP in my portfolio?

QLVE and GARP 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, QLVE or GARP?

QLVE has higher volatility (6.73%) compared to GARP (5.68%). In terms of maximum drawdown, QLVE dropped -29.96% vs GARP's -31.34%.

Which ETF is better, QLVE or GARP?

On 5-year performance, GARP leads with 17.48% vs 7.60% for QLVE. On fees, GARP is cheaper at 0.15% per year. On volatility, GARP has been the lower-risk option at 5.68%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QLVE or GARP?

Over the 5-year period, GARP has performed better with a 17.48% return vs 7.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QLVE or GARP?

GARP is cheaper with a 0.15% expense ratio, compared with 0.40% for QLVE.

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

QLVE has the higher dividend yield at 2.68%, compared with 0.27% for GARP.

What is the main difference between QLVE and GARP?

QLVE tracks Northern Trust Emerging Markets Quality Low Volatility Index, while GARP tracks MSCI USA Quality GARP Select Index. They also come from different issuers: Northern Trust and iShares. Their fees differ too: 0.40% for QLVE and 0.15% for GARP.

Which has better risk-adjusted returns?

GARP currently has the higher Sharpe Ratio (1.50 vs 1.18), 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.