QUAL vs. DGRW

Last updated Aug 4, 2026

QUAL (iShares MSCI USA Quality Factor ETF) and DGRW (WisdomTree U.S. Quality Dividend Growth Fund) are both Quality Factor funds - QUAL tracks the MSCI USA Sector Neutral Quality Index while DGRW tracks the WisdomTree U.S. Quality Dividend Growth Index. Both are passively managed. Over the past 10 years, QUAL returned 14.16%/yr vs 13.79%/yr for DGRW. Their correlation of 0.93 means they have usually moved in the same direction. QUAL charges 0.15%/yr vs 0.28%/yr for DGRW.

Performance

QUAL vs. DGRW - Performance Comparison

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

Returns By Period

In the year-to-date period, QUAL achieves a 12.08% return, which is significantly higher than DGRW's 10.05% return. Both investments have delivered pretty close results over the past 10 years, with QUAL having a 14.16% annualized return and DGRW not far behind at 13.79%.

QUAL

• 1D: 1.10%
• 1M: 1.52%
• 6M: 9.27%
• YTD: 12.08%
• 1Y: 22.77%
• 3Y*: 18.73%
• 5Y*: 11.26%
• 10Y*: 14.16%
• ALL TIME*: 13.75%

DGRW

• 1D: 1.37%
• 1M: 2.07%
• 6M: 6.86%
• YTD: 10.05%
• 1Y: 17.60%
• 3Y*: 15.28%
• 5Y*: 11.72%
• 10Y*: 13.79%
• ALL TIME*: 13.05%

*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)
DGRW WisdomTree U.S. Quality Dividend Growth Fund	$51.74M	$49.20M	$56.02M
QUAL iShares MSCI USA Quality Factor ETF	$217.13M	$238.90M	$384.89M

QUAL vs. DGRW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QUAL iShares MSCI USA Quality Factor ETF	12.08%	12.65%	22.29%	30.88%	-20.50%	26.94%	17.04%	33.89%	-5.70%	22.26%
DGRW WisdomTree U.S. Quality Dividend Growth Fund	10.05%	12.17%	16.98%	18.66%	-6.33%	24.46%	13.87%	29.54%	-5.38%	26.90%

Correlation

The correlation between QUAL and DGRW is 0.91, 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.	0.91
Correlation (3Y) Balances recent behavior with more history.	0.93
Correlation (5Y) Shows whether the relationship held over a longer period.	0.93
Correlation (10Y) Provides a long-term view across more market conditions.	0.93
Correlation (All Time) Calculated using the full available price history since Jul 18, 2013	0.93

The correlation between QUAL and DGRW has been stable across timeframes, ranging from 0.91 to 0.93 - a consistent structural relationship.

QUAL vs. DGRW - Sectors Allocation Comparison

Sectors	QUAL	DGRW
Technology	40.2%	33.8%
Financial Services	10.9%	8.4%
Communication Services	10.3%	11.1%
Healthcare	9.2%	12.8%
Consumer Cyclical	9.0%	8.0%
Industrials	7.4%	11.8%
Consumer Defensive	4.3%	6.7%
Energy	2.9%	4.5%
Utilities	2.1%	0.2%
Basic Materials	1.9%	2.8%
Real Estate	1.7%	-

Return for Risk

QUAL vs. DGRW — Risk / Return Rank

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

QUAL

QUAL Risk / Return Rank: 78
QUAL Sharpe Ratio Rank: 80
QUAL Sortino Ratio Rank: 80
QUAL Omega Ratio Rank: 78
QUAL Calmar Ratio Rank: 71
QUAL Martin Ratio Rank: 83

DGRW

DGRW Risk / Return Rank: 70
DGRW Sharpe Ratio Rank: 73
DGRW Sortino Ratio Rank: 74
DGRW Omega Ratio Rank: 74
DGRW Calmar Ratio Rank: 59
DGRW Martin Ratio Rank: 69

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.

QUAL vs. DGRW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality Factor ETF (QUAL) and WisdomTree U.S. Quality Dividend Growth Fund (DGRW). 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.

	QUAL	DGRW	Difference
Sharpe ratio: Return per unit of total volatility	1.86	1.69	+0.17
Sortino ratio: Return per unit of downside risk	2.63	2.41	+0.22
Omega ratio: Gain probability vs. loss probability	1.33	1.31	+0.02
Calmar ratio: Return relative to maximum drawdown	2.53	2.13	+0.40
Martin ratio: Return relative to average drawdown	11.33	8.60	+2.73

QUAL vs. DGRW - Sharpe Ratio Comparison

The current QUAL Sharpe Ratio is 1.86, which is comparable to the DGRW Sharpe Ratio of 1.69. The chart below compares the historical Sharpe Ratios of QUAL and DGRW, 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

QUAL vs. DGRW - Drawdown Comparison

The maximum QUAL drawdown since its inception was -34.06%, which is greater than DGRW's maximum drawdown of -32.04%. Use the drawdown chart below to compare losses from any high point for QUAL and DGRW.

Drawdown Indicators

	QUAL	DGRW	Difference
Max Drawdown Largest peak-to-trough decline	-34.06%	-32.04%	-2.02%
Max Drawdown (1Y) Largest decline over 1 year	-9.03%	-8.30%	-0.73%
Max Drawdown (3Y) Largest decline over 3 years	-18.00%	-16.21%	-1.79%
Max Drawdown (5Y) Largest decline over 5 years	-28.23%	-17.27%	-10.96%
Max Drawdown (10Y) Largest decline over 10 years	-34.06%	-32.04%	-2.02%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.07%	-3.00%	-1.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.01%	2.05%	-0.04%

Volatility

QUAL vs. DGRW - Volatility Comparison

iShares MSCI USA Quality Factor ETF (QUAL) and WisdomTree U.S. Quality Dividend Growth Fund (DGRW) have volatilities of 3.07% and 3.19%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QUAL	DGRW	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.07%	3.19%	-0.12%
Volatility (6M) Calculated over the trailing 6-month period	9.70%	8.44%	+1.26%
Volatility (1Y) Calculated over the trailing 1-year period	12.33%	10.47%	+1.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.39%	14.02%	+3.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.10%	16.19%	+1.91%

QUAL vs. DGRW - Expense Ratio Comparison

QUAL has a 0.15% expense ratio, which is lower than DGRW's 0.28% expense ratio.

Dividends

QUAL vs. DGRW - Dividend Comparison

QUAL's dividend yield for the trailing twelve months is around 0.85%, less than DGRW's 1.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DGRW WisdomTree U.S. Quality Dividend Growth Fund	1.26%	1.43%	1.55%	1.74%	2.15%	1.78%	1.93%	2.20%	2.42%	1.71%	2.13%	2.18%
QUAL iShares MSCI USA Quality Factor ETF	0.85%	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

Can I hold both QUAL and DGRW in my portfolio?

With a correlation of 0.91, QUAL and DGRW move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, QUAL or DGRW?

DGRW has higher volatility (3.19%) compared to QUAL (3.07%). In terms of maximum drawdown, QUAL dropped -34.06% vs DGRW's -32.04%.

Which ETF is better, QUAL or DGRW?

On 10-year performance, QUAL leads with 14.16% vs 13.79% for DGRW. On fees, QUAL is cheaper at 0.15% per year. On volatility, QUAL has been the lower-risk option at 3.07%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QUAL or DGRW?

Over the 10-year period, QUAL has performed better with a 14.16% return vs 13.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QUAL or DGRW?

QUAL is cheaper with a 0.15% expense ratio, compared with 0.28% for DGRW.

Which ETF pays a higher dividend yield, QUAL or DGRW?

DGRW has the higher dividend yield at 1.26%, compared with 0.85% for QUAL.

What is the main difference between QUAL and DGRW?

QUAL tracks MSCI USA Sector Neutral Quality Index, while DGRW tracks WisdomTree U.S. Quality Dividend Growth Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.15% for QUAL and 0.28% for DGRW.

Which has better risk-adjusted returns?

QUAL currently has the higher Sharpe Ratio (1.86 vs 1.69), 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.