QUAL vs. IQLT

Last updated Jun 13, 2026

QUAL (iShares MSCI USA Quality Factor ETF) and IQLT (iShares MSCI Intl Quality Factor ETF) are both exchange-traded funds - QUAL is a Large Cap Blend Equities fund tracking the MSCI USA Sector Neutral Quality Index, while IQLT is a Foreign Large Cap Equities fund tracking the MSCI World ex USA Sector Neutral Quality Index (Net). Both are passively managed. Over the past 10 years, QUAL returned 14.46%/yr vs 10.17%/yr for IQLT. A 0.71 correlation means they provide meaningful diversification when combined. QUAL charges 0.15%/yr vs 0.30%/yr for IQLT.

Performance

QUAL vs. IQLT - 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 Intl Quality Factor ETF (IQLT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with QUAL having a 9.44% return and IQLT slightly higher at 9.81%. Over the past 10 years, QUAL has outperformed IQLT with an annualized return of 14.46%, while IQLT has yielded a comparatively lower 10.17% annualized return.

QUAL

• 1D: 0.47%
• 1M: 2.14%
• YTD: 9.44%
• 6M: 9.29%
• 1Y: 22.87%
• 3Y*: 19.30%
• 5Y*: 11.97%
• 10Y*: 14.46%

IQLT

• 1D: 0.04%
• 1M: 1.57%
• YTD: 9.81%
• 6M: 11.22%
• 1Y: 18.29%
• 3Y*: 14.25%
• 5Y*: 7.32%
• 10Y*: 10.17%

*Multi-year figures are annualized to reflect compound growth (CAGR)

QUAL vs. IQLT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QUAL iShares MSCI USA Quality Factor ETF	9.44%	12.65%	22.29%	30.88%	-20.50%	26.94%	17.04%	33.89%	-5.70%	22.26%
IQLT iShares MSCI Intl Quality Factor ETF	9.81%	25.42%	1.54%	18.73%	-15.22%	12.94%	12.48%	28.18%	-10.76%	24.04%

Correlation

The correlation between QUAL and IQLT is 0.79, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.79
Correlation (3Y) Calculated over the trailing 3-year period	0.73
Correlation (5Y) Calculated over the trailing 5-year period	0.76
Correlation (10Y) Calculated over the trailing 10-year period	0.75
Correlation (All Time) Calculated using the full available price history since Jan 15, 2015	0.71

The correlation between QUAL and IQLT has been stable across timeframes, ranging from 0.71 to 0.79 - a consistent structural relationship.

QUAL vs. IQLT - Sectors Allocation Comparison

Sectors	QUAL	IQLT
Technology	36.5%	11.6%
Financial Services	11.5%	24.3%
Communication Services	11.1%	4.3%
Consumer Cyclical	9.3%	8.1%
Healthcare	9.0%	9.8%
Industrials	8.2%	17.3%
Consumer Defensive	4.9%	6.0%
Energy	4.0%	5.9%
Utilities	1.9%	3.8%
Real Estate	1.8%	1.6%
Basic Materials	1.7%	7.2%

Return for Risk

QUAL vs. IQLT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

QUAL

QUAL Risk / Return Rank: 59
QUAL Sharpe Ratio Rank: 59
QUAL Sortino Ratio Rank: 60
QUAL Omega Ratio Rank: 56
QUAL Calmar Ratio Rank: 53
QUAL Martin Ratio Rank: 67

IQLT

IQLT Risk / Return Rank: 37
IQLT Sharpe Ratio Rank: 36
IQLT Sortino Ratio Rank: 36
IQLT Omega Ratio Rank: 33
IQLT Calmar Ratio Rank: 37
IQLT Martin Ratio Rank: 43

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. IQLT - 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 Intl Quality Factor ETF (IQLT). 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	IQLT	Difference
Sharpe ratio: Return per unit of total volatility	1.74	1.13	+0.61
Sortino ratio: Return per unit of downside risk	2.46	1.67	+0.79
Omega ratio: Gain probability vs. loss probability	1.31	1.20	+0.11
Calmar ratio: Return relative to maximum drawdown	2.32	1.63	+0.69
Martin ratio: Return relative to average drawdown	10.60	6.18	+4.42

QUAL vs. IQLT - Sharpe Ratio Comparison

The current QUAL Sharpe Ratio is 1.74, which is higher than the IQLT Sharpe Ratio of 1.13. The chart below compares the historical Sharpe Ratios of QUAL and IQLT, 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. IQLT - Drawdown Comparison

The maximum QUAL drawdown since its inception was -34.06%, which is greater than IQLT's maximum drawdown of -32.21%. Use the drawdown chart below to compare losses from any high point for QUAL and IQLT.

Drawdown Indicators

	QUAL	IQLT	Difference
Max Drawdown Largest peak-to-trough decline	-34.06%	-32.21%	-1.85%
Max Drawdown (1Y) Largest decline over 1 year	-9.03%	-10.38%	+1.35%
Max Drawdown (3Y) Largest decline over 3 years	-18.00%	-13.18%	-4.82%
Max Drawdown (5Y) Largest decline over 5 years	-28.23%	-30.24%	+2.01%
Max Drawdown (10Y) Largest decline over 10 years	-34.06%	-32.21%	-1.85%
Current Drawdown Current decline from peak	-0.19%	-0.04%	-0.15%
Average Drawdown Average peak-to-trough decline	-4.10%	-6.21%	+2.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.99%	2.74%	-0.75%

Volatility

QUAL vs. IQLT - Volatility Comparison

The current volatility for iShares MSCI USA Quality Factor ETF (QUAL) is 3.63%, while iShares MSCI Intl Quality Factor ETF (IQLT) has a volatility of 5.41%. This indicates that QUAL experiences smaller price fluctuations and is considered to be less risky than IQLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QUAL	IQLT	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.63%	5.41%	-1.78%
Volatility (6M) Calculated over the trailing 6-month period	9.43%	12.72%	-3.29%
Volatility (1Y) Calculated over the trailing 1-year period	12.10%	15.00%	-2.90%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.36%	16.55%	+0.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.11%	17.00%	+1.11%

QUAL vs. IQLT - Expense Ratio Comparison

QUAL has a 0.15% expense ratio, which is lower than IQLT's 0.30% expense ratio.

Dividends

QUAL vs. IQLT - Dividend Comparison

QUAL's dividend yield for the trailing twelve months is around 0.87%, less than IQLT's 2.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IQLT iShares MSCI Intl Quality Factor ETF	2.12%	2.33%	2.87%	2.27%	3.14%	2.24%	1.61%	2.28%	2.72%	2.36%	2.91%	2.78%
QUAL iShares MSCI USA Quality Factor ETF	0.87%	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 IQLT in my portfolio?

QUAL and IQLT have a correlation of 0.79, 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 IQLT?

IQLT has higher volatility (5.41%) compared to QUAL (3.63%). In terms of maximum drawdown, QUAL dropped -34.06% vs IQLT's -32.21%.

Which ETF is better, QUAL or IQLT?

On 10-year performance, QUAL leads with 14.46% vs 10.17% for IQLT. On fees, QUAL is cheaper at 0.15% per year. On volatility, QUAL has been the lower-risk option at 3.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QUAL or IQLT?

Over the 10-year period, QUAL has performed better with a 14.46% return vs 10.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QUAL or IQLT?

QUAL is cheaper with a 0.15% expense ratio, compared with 0.30% for IQLT.

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

IQLT has the higher dividend yield at 2.12%, compared with 0.87% for QUAL.

What is the main difference between QUAL and IQLT?

QUAL is categorized as Large Cap Blend Equities, while IQLT is Foreign Large Cap Equities. QUAL tracks MSCI USA Sector Neutral Quality Index, while IQLT tracks MSCI World ex USA Sector Neutral Quality Index (Net). Their fees differ too: 0.15% for QUAL and 0.30% for IQLT.

Which has better risk-adjusted returns?

QUAL currently has the higher Sharpe Ratio (1.74 vs 1.13), 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.