QUAL vs. AGG
QUAL (iShares MSCI USA Quality Factor ETF) and AGG (iShares Core U.S. Aggregate Bond ETF) are both exchange-traded funds - QUAL is a Large Cap Blend Equities fund tracking the MSCI USA Sector Neutral Quality Index, while AGG is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Bond Index. Both are passively managed. Over the past 10 years, QUAL returned 14.19%/yr vs 1.52%/yr for AGG. At a 0.03 correlation, their price movements are largely independent. QUAL charges 0.15%/yr vs 0.03%/yr for AGG.
Performance
QUAL vs. AGG - Performance Comparison
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Returns By Period
In the year-to-date period, QUAL achieves a 7.89% return, which is significantly higher than AGG's -0.08% return. Over the past 10 years, QUAL has outperformed AGG with an annualized return of 14.19%, while AGG has yielded a comparatively lower 1.52% annualized return.
QUAL
- 1D
- 0.32%
- 1M
- 1.62%
- YTD
- 7.89%
- 6M
- 8.26%
- 1Y
- 19.70%
- 3Y*
- 19.43%
- 5Y*
- 11.82%
- 10Y*
- 14.19%
AGG
- 1D
- 0.00%
- 1M
- -0.69%
- YTD
- -0.08%
- 6M
- 0.26%
- 1Y
- 4.97%
- 3Y*
- 3.88%
- 5Y*
- -0.03%
- 10Y*
- 1.52%
QUAL vs. AGG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
QUAL iShares MSCI USA Quality Factor ETF | 7.89% | 12.65% | 22.29% | 30.88% | -20.50% | 26.94% | 17.04% | 33.89% | -5.70% | 22.26% |
AGG iShares Core U.S. Aggregate Bond ETF | -0.08% | 7.19% | 1.31% | 5.65% | -13.02% | -1.77% | 7.48% | 8.46% | 0.09% | 3.55% |
Correlation
The correlation between QUAL and AGG is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.36 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.26 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.21 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.10 |
Correlation (All Time) Calculated using the full available price history since Jul 19, 2013 | 0.03 |
Over the past year, QUAL and AGG have become more correlated (0.36) than their long-term average of 0.03, meaning their price movements have been converging.
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Return for Risk
QUAL vs. AGG — Risk / Return Rank
QUAL
AGG
QUAL vs. AGG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality Factor ETF (QUAL) and iShares Core U.S. Aggregate Bond ETF (AGG). 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.
| QUAL | AGG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.33 | ||
| Sortino ratioReturn per unit of downside risk | +0.40 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 1.23 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 2.19 | 1.81 | +0.38 |
| Martin ratioReturn relative to average drawdown | 9.96 | 5.44 | +4.53 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| QUAL | AGG | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.65 | 1.32 | +0.33 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.68 | -0.00 | +0.69 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.79 | 0.28 | +0.51 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.80 | 0.59 | +0.21 |
Drawdowns
QUAL vs. AGG - Drawdown Comparison
The maximum QUAL drawdown since its inception was -34.06%, which is greater than AGG's maximum drawdown of -18.43%. Use the drawdown chart below to compare losses from any high point for QUAL and AGG.
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Drawdown Indicators
| QUAL | AGG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.06% | -18.43% | -15.63% |
Max Drawdown (1Y)Largest decline over 1 year | -9.03% | -2.76% | -6.27% |
Max Drawdown (3Y)Largest decline over 3 years | -18.00% | -6.11% | -11.89% |
Max Drawdown (5Y)Largest decline over 5 years | -28.23% | -17.82% | -10.41% |
Max Drawdown (10Y)Largest decline over 10 years | -34.06% | -18.43% | -15.63% |
Current DrawdownCurrent decline from peak | -1.61% | -2.47% | +0.86% |
Average DrawdownAverage peak-to-trough decline | -4.10% | -2.71% | -1.39% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.98% | 0.92% | +1.06% |
Volatility
QUAL vs. AGG - Volatility Comparison
iShares MSCI USA Quality Factor ETF (QUAL) has a higher volatility of 3.12% compared to iShares Core U.S. Aggregate Bond ETF (AGG) at 1.29%. This indicates that QUAL's price experiences larger fluctuations and is considered to be riskier than AGG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| QUAL | AGG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.12% | 1.29% | +1.83% |
Volatility (6M)Calculated over the trailing 6-month period | 9.28% | 2.77% | +6.51% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.01% | 3.80% | +8.21% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.35% | 6.09% | +11.26% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.11% | 5.41% | +12.70% |
QUAL vs. AGG - Expense Ratio Comparison
QUAL has a 0.15% expense ratio, which is higher than AGG's 0.03% 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
QUAL vs. AGG - Dividend Comparison
QUAL's dividend yield for the trailing twelve months is around 0.88%, less than AGG's 4.00% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AGG iShares Core U.S. Aggregate Bond ETF | 4.00% | 3.89% | 3.74% | 3.13% | 2.39% | 1.77% | 2.14% | 2.70% | 2.72% | 2.32% | 2.39% | 2.45% |
QUAL iShares MSCI USA Quality Factor ETF | 0.88% | 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
QUAL and AGG have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
QUAL has higher volatility (3.12%) compared to AGG (1.29%). In terms of maximum drawdown, QUAL dropped -34.06% vs AGG's -18.43%.
On 10-year performance, QUAL leads with 14.19% vs 1.52% for AGG. On fees, AGG is cheaper at 0.03% per year. On volatility, AGG has been the lower-risk option at 1.29%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, QUAL has performed better with a 14.19% return vs 1.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
AGG is cheaper with a 0.03% expense ratio, compared with 0.15% for QUAL.
AGG has the higher dividend yield at 4.00%, compared with 0.88% for QUAL.
QUAL is categorized as Large Cap Blend Equities, while AGG is Total Bond Market. QUAL tracks MSCI USA Sector Neutral Quality Index, while AGG tracks Bloomberg U.S. Aggregate Bond Index. Their fees differ too: 0.15% for QUAL and 0.03% for AGG.
QUAL currently has the higher Sharpe Ratio (1.65 vs 1.32), 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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