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QUAL vs. HDV
Performance
Return for Risk
Drawdowns
Volatility
Dividends

QUAL vs. HDV

Last updated Jun 26, 2026

QUAL (iShares MSCI USA Quality Factor ETF) and HDV (iShares Core High Dividend ETF) are both exchange-traded funds - QUAL is a Large Cap Blend Equities fund tracking the MSCI USA Sector Neutral Quality Index, while HDV is a Dividend fund tracking the Morningstar Dividend Yield Focus Index. Both are passively managed. Over the past 10 years, QUAL returned 14.66%/yr vs 9.58%/yr for HDV. A 0.69 correlation means they provide meaningful diversification when combined. QUAL charges 0.15%/yr vs 0.08%/yr for HDV.

Performance

QUAL vs. HDV - Performance Comparison

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

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Returns By Period

In the year-to-date period, QUAL achieves a 7.79% return, which is significantly lower than HDV's 14.65% return. Over the past 10 years, QUAL has outperformed HDV with an annualized return of 14.66%, while HDV has yielded a comparatively lower 9.58% annualized return.

QUAL

1D
0.03%
1M
-1.00%
YTD
7.79%
6M
6.52%
1Y
20.01%
3Y*
18.78%
5Y*
11.34%
10Y*
14.66%

HDV

1D
0.62%
1M
0.27%
YTD
14.65%
6M
14.27%
1Y
22.51%
3Y*
15.50%
5Y*
11.09%
10Y*
9.58%
*Multi-year figures are annualized to reflect compound growth (CAGR)

QUAL vs. HDV - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
QUAL
iShares MSCI USA Quality Factor ETF		7.79%12.65%22.29%30.88%-20.50%26.94%17.04%33.89%-5.70%22.26%
HDV
iShares Core High Dividend ETF		14.65%11.90%14.16%1.72%7.05%19.45%-6.48%20.22%-3.01%13.40%

Correlation

The correlation between QUAL and HDV is 0.20, which is low. Their price movements are largely independent, making them effective diversification partners.

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

0.20

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

0.35

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

0.53

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

0.65

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

0.69

Over the past year, the correlation between QUAL and HDV has dropped to 0.20 - well below their long-term average of 0.69, suggesting their price drivers have been diverging.

QUAL vs. HDV - Sectors Allocation Comparison

Sectors
QUAL
HDV

Technology

38.8%
0.2%

Communication Services

11.8%
5.7%

Financial Services

10.8%
4.7%

Consumer Cyclical

9.3%
9.2%

Healthcare

8.7%
22.6%

Industrials

7.2%
3.5%

Consumer Defensive

4.4%
24.5%

Energy

3.2%
20.2%

Utilities

2.1%
8.1%

Basic Materials

1.9%
0.8%

Real Estate

1.8%

-

Technology

QUAL
38.8%
HDV
0.2%

Communication Services

QUAL
11.8%
HDV
5.7%

Financial Services

QUAL
10.8%
HDV
4.7%

Consumer Cyclical

QUAL
9.3%
HDV
9.2%

Healthcare

QUAL
8.7%
HDV
22.6%

Industrials

QUAL
7.2%
HDV
3.5%

Consumer Defensive

QUAL
4.4%
HDV
24.5%

Energy

QUAL
3.2%
HDV
20.2%

Utilities

QUAL
2.1%
HDV
8.1%

Basic Materials

QUAL
1.9%
HDV
0.8%

Real Estate

QUAL
1.8%
HDV

-

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iShares MSCI USA Quality Factor ETF

iShares Core High Dividend ETF

Often compared with QUAL:
QUAL vs. SPHQQUAL vs. SPYQUAL vs. MTUMQUAL vs. USMVQUAL vs. VOOQUAL vs. IVVQUAL vs. SCHD
Often compared with HDV:
HDV vs. SCHDHDV vs. VYMHDV vs. SPYDHDV vs. DGROHDV vs. DVYHDV vs. VIGHDV vs. SPY

Return for Risk

QUAL vs. HDV — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
QUAL
QUAL Risk / Return Rank: 5757
Overall Rank
QUAL Sharpe Ratio Rank: 5757
Sharpe Ratio Rank
QUAL Sortino Ratio Rank: 5757
Sortino Ratio Rank
QUAL Omega Ratio Rank: 5454
Omega Ratio Rank
QUAL Calmar Ratio Rank: 5252
Calmar Ratio Rank
QUAL Martin Ratio Rank: 6464
Martin Ratio Rank
HDV
HDV Risk / Return Rank: 8181
Overall Rank
HDV Sharpe Ratio Rank: 8282
Sharpe Ratio Rank
HDV Sortino Ratio Rank: 8686
Sortino Ratio Rank
HDV Omega Ratio Rank: 7777
Omega Ratio Rank
HDV Calmar Ratio Rank: 8787
Calmar Ratio Rank
HDV Martin Ratio Rank: 7474
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.

QUAL vs. HDV - 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 High Dividend ETF (HDV). 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.

QUALHDVDifference
Sharpe ratioReturn per unit of total volatility
1.67
2.28

-0.61

Sortino ratioReturn per unit of downside risk
2.37
3.33

-0.97

Omega ratioGain probability vs. loss probability

1.30

1.39

-0.09

Calmar ratioReturn relative to maximum drawdown

2.23

4.37

-2.14

Martin ratioReturn relative to average drawdown

10.04

11.94

-1.91

QUAL vs. HDV - Sharpe Ratio Comparison

The current QUAL Sharpe Ratio is 1.67, which is comparable to the HDV Sharpe Ratio of 2.28. The chart below compares the historical Sharpe Ratios of QUAL and HDV, 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

QUAL vs. HDV - Drawdown Comparison

The maximum QUAL drawdown since its inception was -34.06%, smaller than the maximum HDV drawdown of -37.04%. Use the drawdown chart below to compare losses from any high point for QUAL and HDV.

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Drawdown Indicators

QUALHDVDifference

Max Drawdown

Largest peak-to-trough decline

-34.06%

-37.04%

+2.98%

Max Drawdown (1Y)

Largest decline over 1 year

-9.03%

-5.18%

-3.85%

Max Drawdown (3Y)

Largest decline over 3 years

-18.00%

-10.49%

-7.51%

Max Drawdown (5Y)

Largest decline over 5 years

-28.23%

-15.42%

-12.81%

Max Drawdown (10Y)

Largest decline over 10 years

-34.06%

-37.04%

+2.98%

Current Drawdown

Current decline from peak

-2.71%

-0.84%

-1.87%

Average Drawdown

Average peak-to-trough decline

-4.09%

-3.08%

-1.01%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.00%

1.89%

+0.11%

Volatility

QUAL vs. HDV - Volatility Comparison

iShares MSCI USA Quality Factor ETF (QUAL) has a higher volatility of 3.96% compared to iShares Core High Dividend ETF (HDV) at 3.33%. This indicates that QUAL's price experiences larger fluctuations and is considered to be riskier than HDV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

QUALHDVDifference

Volatility (1M)

Calculated over the trailing 1-month period

3.96%

3.33%

+0.63%

Volatility (6M)

Calculated over the trailing 6-month period

9.61%

7.61%

+2.00%

Volatility (1Y)

Calculated over the trailing 1-year period

12.05%

9.95%

+2.10%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.38%

12.81%

+4.57%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.09%

15.72%

+2.37%

QUAL vs. HDV - Expense Ratio Comparison

QUAL has a 0.15% expense ratio, which is higher than HDV's 0.08% 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. HDV - Dividend Comparison

QUAL's dividend yield for the trailing twelve months is around 0.88%, less than HDV's 2.88% yield.

PositionTTM20252024202320222021202020192018201720162015
HDV
iShares Core High Dividend ETF		2.88%3.22%3.67%3.82%3.56%3.47%4.07%3.27%3.67%3.27%3.28%3.92%
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 HDV have a correlation of 0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

QUAL has higher volatility (3.96%) compared to HDV (3.33%). In terms of maximum drawdown, QUAL dropped -34.06% vs HDV's -37.04%.

On 10-year performance, QUAL leads with 14.66% vs 9.58% for HDV. On fees, HDV is cheaper at 0.08% per year. On volatility, HDV has been the lower-risk option at 3.33%. 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 14.66% return vs 9.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

HDV is cheaper with a 0.08% expense ratio, compared with 0.15% for QUAL.

HDV has the higher dividend yield at 2.88%, compared with 0.88% for QUAL.

QUAL is categorized as Large Cap Blend Equities, while HDV is Dividend. QUAL tracks MSCI USA Sector Neutral Quality Index, while HDV tracks Morningstar Dividend Yield Focus Index. Their fees differ too: 0.15% for QUAL and 0.08% for HDV.

HDV currently has the higher Sharpe Ratio (2.28 vs 1.67), 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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