QSML vs. VFQY

Last updated Aug 4, 2026

QSML (Wisdomtree U.S. Smallcap Quality Growth Fund) and VFQY (Vanguard U.S. Quality Factor ETF) are both Quality Factor funds. QSML is passively managed, while VFQY is actively managed. Over the past year, QSML returned 31.80% vs 23.29% for VFQY. Their correlation of 0.91 means they have usually moved in the same direction. QSML charges 0.38%/yr vs 0.13%/yr for VFQY.

Performance

QSML vs. VFQY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Wisdomtree U.S. Smallcap Quality Growth Fund (QSML) and Vanguard U.S. Quality Factor ETF (VFQY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, QSML achieves a 19.46% return, which is significantly higher than VFQY's 14.20% return.

QSML

• 1D: 1.98%
• 1M: 2.30%
• 6M: 15.89%
• YTD: 19.46%
• 1Y: 31.80%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 13.80%

VFQY

• 1D: 1.05%
• 1M: 2.21%
• 6M: 10.27%
• YTD: 14.20%
• 1Y: 23.29%
• 3Y*: 15.72%
• 5Y*: 9.15%
• 10Y*: —
• ALL TIME*: 11.62%

*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)
QSML Wisdomtree U.S. Smallcap Quality Growth Fund	$17.22K	$17.81K	$19.02K
VFQY Vanguard U.S. Quality Factor ETF	$948.51K	$988.82K	$1.06M

QSML vs. VFQY - Yearly Performance Comparison

	2026 (YTD)	2025	2024
QSML Wisdomtree U.S. Smallcap Quality Growth Fund	19.46%	5.49%	9.93%
VFQY Vanguard U.S. Quality Factor ETF	14.20%	10.24%	12.71%

Correlation

The correlation between QSML and VFQY is 0.90, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.90
Correlation (All Time) Calculated using the full available price history since Jan 25, 2024	0.91

The correlation between QSML and VFQY has been stable across timeframes, ranging from 0.90 to 0.91 - a consistent structural relationship.

QSML vs. VFQY - Sectors Allocation Comparison

Sectors	QSML	VFQY
Technology	21.4%	25.8%
Consumer Cyclical	18.1%	13.3%
Financial Services	15.6%	18.9%
Industrials	13.8%	16.8%
Healthcare	13.7%	8.9%
Consumer Defensive	7.6%	9.2%
Energy	4.0%	2.2%
Communication Services	2.9%	2.8%
Basic Materials	2.4%	2.2%
Real Estate	0.3%	-
Utilities	0.2%	-

Return for Risk

QSML vs. VFQY — Risk / Return Rank

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

QSML

QSML Risk / Return Rank: 75
QSML Sharpe Ratio Rank: 75
QSML Sortino Ratio Rank: 79
QSML Omega Ratio Rank: 70
QSML Calmar Ratio Rank: 78
QSML Martin Ratio Rank: 75

VFQY

VFQY Risk / Return Rank: 74
VFQY Sharpe Ratio Rank: 75
VFQY Sortino Ratio Rank: 76
VFQY Omega Ratio Rank: 70
VFQY Calmar Ratio Rank: 71
VFQY Martin Ratio Rank: 75

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.

QSML vs. VFQY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Wisdomtree U.S. Smallcap Quality Growth Fund (QSML) 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.

	QSML	VFQY	Difference
Sharpe ratio: Return per unit of total volatility	1.83	1.75	+0.08
Sortino ratio: Return per unit of downside risk	2.73	2.53	+0.19
Omega ratio: Gain probability vs. loss probability	1.31	1.30	+0.01
Calmar ratio: Return relative to maximum drawdown	2.98	2.57	+0.41
Martin ratio: Return relative to average drawdown	10.05	9.69	+0.37

QSML vs. VFQY - Sharpe Ratio Comparison

The current QSML Sharpe Ratio is 1.83, which is comparable to the VFQY Sharpe Ratio of 1.75. The chart below compares the historical Sharpe Ratios of QSML 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

QSML vs. VFQY - Drawdown Comparison

The maximum QSML drawdown since its inception was -28.54%, smaller than the maximum VFQY drawdown of -37.41%. Use the drawdown chart below to compare losses from any high point for QSML and VFQY.

Drawdown Indicators

	QSML	VFQY	Difference
Max Drawdown Largest peak-to-trough decline	-28.54%	-37.41%	+8.87%
Max Drawdown (1Y) Largest decline over 1 year	-10.72%	-9.12%	-1.60%
Max Drawdown (3Y) Largest decline over 3 years	—	-20.67%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-25.93%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-5.63%	-6.57%	+0.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.17%	2.41%	+0.76%

Volatility

QSML vs. VFQY - Volatility Comparison

Wisdomtree U.S. Smallcap Quality Growth Fund (QSML) has a higher volatility of 4.71% compared to Vanguard U.S. Quality Factor ETF (VFQY) at 3.12%. This indicates that QSML'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

	QSML	VFQY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.71%	3.12%	+1.59%
Volatility (6M) Calculated over the trailing 6-month period	12.38%	9.58%	+2.80%
Volatility (1Y) Calculated over the trailing 1-year period	17.49%	13.37%	+4.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.59%	18.29%	+2.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.59%	20.73%	-0.14%

QSML vs. VFQY - Expense Ratio Comparison

QSML has a 0.38% expense ratio, which is higher than VFQY's 0.13% expense ratio.

Dividends

QSML vs. VFQY - Dividend Comparison

QSML's dividend yield for the trailing twelve months is around 0.52%, less than VFQY's 1.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
QSML Wisdomtree U.S. Smallcap Quality Growth Fund	0.52%	0.62%	0.32%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VFQY Vanguard U.S. Quality Factor ETF	1.03%	1.17%	1.34%	1.38%	1.43%	0.98%	1.22%	1.34%	1.31%

Frequently Asked Questions

Can I hold both QSML and VFQY in my portfolio?

QSML and VFQY have a correlation of 0.90, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QSML or VFQY?

QSML has higher volatility (4.71%) compared to VFQY (3.12%). In terms of maximum drawdown, QSML dropped -28.54% vs VFQY's -37.41%.

Which ETF is better, QSML or VFQY?

On 1-year performance, QSML leads with 31.80% vs 23.29% for VFQY. On fees, VFQY is cheaper at 0.13% per year. On volatility, VFQY has been the lower-risk option at 3.12%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QSML or VFQY?

Over the 1-year period, QSML has performed better with a 31.80% return vs 23.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QSML or VFQY?

VFQY is cheaper with a 0.13% expense ratio, compared with 0.38% for QSML.

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

VFQY has the higher dividend yield at 1.03%, compared with 0.52% for QSML.

What is the main difference between QSML and VFQY?

They also come from different issuers: WisdomTree and Vanguard. Their fees differ too: 0.38% for QSML and 0.13% for VFQY.

Which has better risk-adjusted returns?

QSML currently has the higher Sharpe Ratio (1.83 vs 1.75), 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.