QUAL vs. EQLT

Last updated Aug 4, 2026

QUAL (iShares MSCI USA Quality Factor ETF) and EQLT (iShares MSCI Emerging Markets Quality Factor ETF) are both Quality Factor funds from iShares - QUAL tracks the MSCI USA Sector Neutral Quality Index while EQLT tracks the MSCI Emerging Markets Quality Factor Select Index. Both are passively managed. Over the past year, QUAL returned 22.77% vs 47.25% for EQLT. Their 0.60 correlation means they have sometimes moved together and sometimes differently. QUAL charges 0.15%/yr vs 0.35%/yr for EQLT.

Performance

QUAL vs. EQLT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Quality Factor ETF (QUAL) and iShares MSCI Emerging Markets Quality Factor ETF (EQLT). 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 lower than EQLT's 25.30% return.

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%

EQLT

• 1D: 1.99%
• 1M: 0.61%
• 6M: 15.96%
• YTD: 25.30%
• 1Y: 47.25%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 30.32%

*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)
EQLT iShares MSCI Emerging Markets Quality Factor ETF	$66.04K	$56.95K	$121.40K
QUAL iShares MSCI USA Quality Factor ETF	$217.13M	$238.90M	$384.89M

QUAL vs. EQLT - Yearly Performance Comparison

	2026 (YTD)	2025	2024
QUAL iShares MSCI USA Quality Factor ETF	12.08%	12.65%	3.73%
EQLT iShares MSCI Emerging Markets Quality Factor ETF	25.30%	33.93%	-1.29%

Correlation

The correlation between QUAL and EQLT is 0.69, 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.	0.69
Correlation (All Time) Calculated using the full available price history since Sep 6, 2024	0.60

The correlation between QUAL and EQLT has been stable across timeframes, ranging from 0.60 to 0.69 - a consistent structural relationship.

QUAL vs. EQLT - Sectors Allocation Comparison

Sectors	QUAL	EQLT
Technology	40.2%	34.8%
Financial Services	10.9%	19.5%
Communication Services	10.3%	5.2%
Healthcare	9.2%	3.3%
Consumer Cyclical	9.0%	8.2%
Industrials	7.4%	11.4%
Consumer Defensive	4.3%	3.5%
Energy	2.9%	3.5%
Utilities	2.1%	1.8%
Basic Materials	1.9%	6.5%
Real Estate	1.7%	0.9%

Return for Risk

QUAL vs. EQLT — 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

EQLT

EQLT Risk / Return Rank: 82
EQLT Sharpe Ratio Rank: 82
EQLT Sortino Ratio Rank: 76
EQLT Omega Ratio Rank: 80
EQLT Calmar Ratio Rank: 90
EQLT Martin Ratio Rank: 82

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. EQLT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality Factor ETF (QUAL) and iShares MSCI Emerging Markets Quality Factor ETF (EQLT). 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	EQLT	Difference
Sharpe ratio: Return per unit of total volatility	1.86	2.03	-0.17
Sortino ratio: Return per unit of downside risk	2.63	2.63	0.00
Omega ratio: Gain probability vs. loss probability	1.33	1.36	-0.03
Calmar ratio: Return relative to maximum drawdown	2.53	3.96	-1.43
Martin ratio: Return relative to average drawdown	11.33	11.90	-0.57

QUAL vs. EQLT - Sharpe Ratio Comparison

The current QUAL Sharpe Ratio is 1.86, which is comparable to the EQLT Sharpe Ratio of 2.03. The chart below compares the historical Sharpe Ratios of QUAL and EQLT, 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. EQLT - Drawdown Comparison

The maximum QUAL drawdown since its inception was -34.06%, which is greater than EQLT's maximum drawdown of -17.38%. Use the drawdown chart below to compare losses from any high point for QUAL and EQLT.

Drawdown Indicators

	QUAL	EQLT	Difference
Max Drawdown Largest peak-to-trough decline	-34.06%	-17.38%	-16.68%
Max Drawdown (1Y) Largest decline over 1 year	-9.03%	-12.00%	+2.97%
Max Drawdown (3Y) Largest decline over 3 years	-18.00%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-28.23%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-34.06%	—	—
Current Drawdown Current decline from peak	0.00%	-6.54%	+6.54%
Average Drawdown Average peak-to-trough decline	-4.07%	-3.81%	-0.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.01%	3.98%	-1.97%

Volatility

QUAL vs. EQLT - Volatility Comparison

The current volatility for iShares MSCI USA Quality Factor ETF (QUAL) is 3.07%, while iShares MSCI Emerging Markets Quality Factor ETF (EQLT) has a volatility of 6.29%. This indicates that QUAL experiences smaller price fluctuations and is considered to be less risky than EQLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QUAL	EQLT	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.07%	6.29%	-3.22%
Volatility (6M) Calculated over the trailing 6-month period	9.70%	21.12%	-11.42%
Volatility (1Y) Calculated over the trailing 1-year period	12.33%	23.48%	-11.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.39%	21.27%	-3.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.10%	21.27%	-3.17%

QUAL vs. EQLT - Expense Ratio Comparison

QUAL has a 0.15% expense ratio, which is lower than EQLT's 0.35% expense ratio.

Dividends

QUAL vs. EQLT - Dividend Comparison

QUAL's dividend yield for the trailing twelve months is around 0.85%, less than EQLT's 2.80% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EQLT iShares MSCI Emerging Markets Quality Factor ETF	2.80%	3.10%	0.51%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 EQLT in my portfolio?

QUAL and EQLT have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QUAL or EQLT?

EQLT has higher volatility (6.29%) compared to QUAL (3.07%). In terms of maximum drawdown, QUAL dropped -34.06% vs EQLT's -17.38%.

Which ETF is better, QUAL or EQLT?

On 1-year performance, EQLT leads with 47.25% vs 22.77% for QUAL. 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 EQLT?

Over the 1-year period, EQLT has performed better with a 47.25% return vs 22.77%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QUAL or EQLT?

QUAL is cheaper with a 0.15% expense ratio, compared with 0.35% for EQLT.

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

EQLT has the higher dividend yield at 2.80%, compared with 0.85% for QUAL.

What is the main difference between QUAL and EQLT?

QUAL tracks MSCI USA Sector Neutral Quality Index, while EQLT tracks MSCI Emerging Markets Quality Factor Select Index. Their fees differ too: 0.15% for QUAL and 0.35% for EQLT.

Which has better risk-adjusted returns?

EQLT currently has the higher Sharpe Ratio (2.03 vs 1.86), 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.