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QQQ vs. QUAL
Performance
Return for Risk
Drawdowns
Volatility
Dividends

QQQ vs. QUAL

Last updated Jun 14, 2026

QQQ (Invesco QQQ ETF) and QUAL (iShares MSCI USA Quality Factor ETF) are both exchange-traded funds - QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index, while QUAL is a Large Cap Blend Equities fund tracking the MSCI USA Sector Neutral Quality Index. Both are passively managed. Over the past 10 years, QQQ returned 21.79%/yr vs 14.46%/yr for QUAL. Their correlation of 0.88 suggests significant overlap in exposure. QQQ charges 0.18%/yr vs 0.15%/yr for QUAL.

Performance

QQQ vs. QUAL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco QQQ ETF (QQQ) and iShares MSCI USA Quality Factor ETF (QUAL). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, QQQ achieves a 17.57% return, which is significantly higher than QUAL's 9.44% return. Over the past 10 years, QQQ has outperformed QUAL with an annualized return of 21.79%, while QUAL has yielded a comparatively lower 14.46% annualized return.

QQQ

1D
0.59%
1M
0.22%
YTD
17.57%
6M
17.85%
1Y
37.55%
3Y*
26.43%
5Y*
16.85%
10Y*
21.79%

QUAL

1D
0.47%
1M
2.14%
YTD
9.44%
6M
9.29%
1Y
22.87%
3Y*
19.30%
5Y*
11.97%
10Y*
14.46%
*Multi-year figures are annualized to reflect compound growth (CAGR)

QQQ vs. QUAL - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
QQQ
Invesco QQQ ETF		17.57%20.77%25.58%54.86%-32.58%27.42%48.62%38.96%-0.13%32.66%
QUAL
iShares MSCI USA Quality Factor ETF		9.44%12.65%22.29%30.88%-20.50%26.94%17.04%33.89%-5.70%22.26%

Correlation

The correlation between QQQ and QUAL is 0.84, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.84

Correlation (3Y)
Calculated over the trailing 3-year period

0.89

Correlation (5Y)
Calculated over the trailing 5-year period

0.91

Correlation (10Y)
Calculated over the trailing 10-year period

0.88

Correlation (All Time)
Calculated using the full available price history since Jul 18, 2013

0.88

The correlation between QQQ and QUAL has been stable across timeframes, ranging from 0.84 to 0.91 - a consistent structural relationship.

QQQ vs. QUAL - Sectors Allocation Comparison

Sectors
QQQ
QUAL

Technology

58.7%
38.8%

Communication Services

14.3%
11.8%

Consumer Cyclical

11.4%
9.3%

Consumer Defensive

6.4%
4.4%

Healthcare

3.7%
8.7%

Industrials

2.6%
7.2%

Utilities

1.2%
2.1%

Basic Materials

1.0%
1.9%

Energy

0.5%
3.2%

Financial Services

0.2%
10.8%

Real Estate

0.1%
1.8%

Technology

QQQ
58.7%
QUAL
38.8%

Communication Services

QQQ
14.3%
QUAL
11.8%

Consumer Cyclical

QQQ
11.4%
QUAL
9.3%

Consumer Defensive

QQQ
6.4%
QUAL
4.4%

Healthcare

QQQ
3.7%
QUAL
8.7%

Industrials

QQQ
2.6%
QUAL
7.2%

Utilities

QQQ
1.2%
QUAL
2.1%

Basic Materials

QQQ
1.0%
QUAL
1.9%

Energy

QQQ
0.5%
QUAL
3.2%

Financial Services

QQQ
0.2%
QUAL
10.8%

Real Estate

QQQ
0.1%
QUAL
1.8%

Compare stocks, funds, or ETFs

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Invesco QQQ ETF

iShares MSCI USA Quality Factor ETF

Often compared with QQQ:
QQQ vs. SPYQQQ vs. VOOQQQ vs. VGTQQQ vs. TQQQQQQ vs. SMHQQQ vs. QQQMQQQ vs. QQQI
Often compared with QUAL:
QUAL vs. SPHQQUAL vs. SPYQUAL vs. MTUMQUAL vs. USMVQUAL vs. VOOQUAL vs. IVVQUAL vs. SCHD

Return for Risk

QQQ vs. QUAL — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
QQQ
QQQ Risk / Return Rank: 7171
Overall Rank
QQQ Sharpe Ratio Rank: 7575
Sharpe Ratio Rank
QQQ Sortino Ratio Rank: 7070
Sortino Ratio Rank
QQQ Omega Ratio Rank: 7373
Omega Ratio Rank
QQQ Calmar Ratio Rank: 6969
Calmar Ratio Rank
QQQ Martin Ratio Rank: 7070
Martin Ratio Rank
QUAL
QUAL Risk / Return Rank: 5959
Overall Rank
QUAL Sharpe Ratio Rank: 5959
Sharpe Ratio Rank
QUAL Sortino Ratio Rank: 6060
Sortino Ratio Rank
QUAL Omega Ratio Rank: 5656
Omega Ratio Rank
QUAL Calmar Ratio Rank: 5353
Calmar Ratio Rank
QUAL Martin Ratio Rank: 6767
Martin Ratio Rank
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.

QQQ vs. QUAL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco QQQ ETF (QQQ) and iShares MSCI USA Quality Factor ETF (QUAL). 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.

QQQQUALDifference
Sharpe ratioReturn per unit of total volatility
2.09
1.74

+0.36

Sortino ratioReturn per unit of downside risk
2.73
2.46

+0.27

Omega ratioGain probability vs. loss probability

1.37

1.31

+0.06

Calmar ratioReturn relative to maximum drawdown

3.01

2.32

+0.68

Martin ratioReturn relative to average drawdown

11.22

10.60

+0.62

QQQ vs. QUAL - Sharpe Ratio Comparison

The current QQQ Sharpe Ratio is 2.09, which is comparable to the QUAL Sharpe Ratio of 1.74. The chart below compares the historical Sharpe Ratios of QQQ and QUAL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

QQQ vs. QUAL - Drawdown Comparison

The maximum QQQ drawdown since its inception was -82.97%, which is greater than QUAL's maximum drawdown of -34.06%. Use the drawdown chart below to compare losses from any high point for QQQ and QUAL.

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Drawdown Indicators

QQQQUALDifference

Max Drawdown

Largest peak-to-trough decline

-82.97%

-34.06%

-48.91%

Max Drawdown (1Y)

Largest decline over 1 year

-11.96%

-9.03%

-2.93%

Max Drawdown (3Y)

Largest decline over 3 years

-22.77%

-18.00%

-4.77%

Max Drawdown (5Y)

Largest decline over 5 years

-35.12%

-28.23%

-6.89%

Max Drawdown (10Y)

Largest decline over 10 years

-35.12%

-34.06%

-1.06%

Current Drawdown

Current decline from peak

-3.33%

-0.19%

-3.14%

Average Drawdown

Average peak-to-trough decline

-32.75%

-4.10%

-28.65%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.20%

1.99%

+1.21%

Volatility

QQQ vs. QUAL - Volatility Comparison

Invesco QQQ ETF (QQQ) has a higher volatility of 7.56% compared to iShares MSCI USA Quality Factor ETF (QUAL) at 3.63%. This indicates that QQQ's price experiences larger fluctuations and is considered to be riskier than QUAL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

QQQQUALDifference

Volatility (1M)

Calculated over the trailing 1-month period

7.56%

3.63%

+3.93%

Volatility (6M)

Calculated over the trailing 6-month period

13.81%

9.43%

+4.38%

Volatility (1Y)

Calculated over the trailing 1-year period

17.19%

12.10%

+5.09%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

22.55%

17.36%

+5.19%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

22.38%

18.11%

+4.27%

QQQ vs. QUAL - Expense Ratio Comparison

QQQ has a 0.18% expense ratio, which is higher than QUAL'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

QQQ vs. QUAL - Dividend Comparison

QQQ's dividend yield for the trailing twelve months is around 0.39%, less than QUAL's 0.87% yield.

PositionTTM20252024202320222021202020192018201720162015
QQQ
Invesco QQQ ETF		0.39%0.45%0.56%0.62%0.80%0.43%0.55%0.74%0.91%0.84%1.06%0.99%
QUAL
iShares MSCI USA Quality Factor ETF		0.87%0.94%1.02%1.23%1.59%1.20%1.39%1.60%2.00%1.76%1.96%1.63%

Frequently Asked Questions

QQQ and QUAL have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

QQQ has higher volatility (7.56%) compared to QUAL (3.63%). In terms of maximum drawdown, QQQ dropped -82.97% vs QUAL's -34.06%.

On 10-year performance, QQQ leads with 21.79% vs 14.46% for QUAL. On fees, QUAL is cheaper at 0.15% per year. On volatility, QUAL has been the lower-risk option at 3.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, QQQ has performed better with a 21.79% return vs 14.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

QUAL is cheaper with a 0.15% expense ratio, compared with 0.18% for QQQ.

QUAL has the higher dividend yield at 0.87%, compared with 0.39% for QQQ.

QQQ is categorized as Nasdaq-100, while QUAL is Large Cap Blend Equities. QQQ tracks NASDAQ-100 Index, while QUAL tracks MSCI USA Sector Neutral Quality Index. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.18% for QQQ and 0.15% for QUAL.

QQQ currently has the higher Sharpe Ratio (2.09 vs 1.74), 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.

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