QUAL vs. MSFT
QUAL (iShares MSCI USA Quality Factor ETF) is Large Cap Blend Equities fund tracking the MSCI USA Sector Neutral Quality Index, while MSFT (Microsoft Corporation) is a stock. Over the past 10 years, QUAL returned 14.19%/yr vs 24.64%/yr for MSFT. A 0.69 correlation means they provide meaningful diversification when combined.
Performance
QUAL vs. MSFT - 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 MSFT's -14.48% return. Over the past 10 years, QUAL has underperformed MSFT with an annualized return of 14.19%, while MSFT has yielded a comparatively higher 24.64% 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%
MSFT
- 1D
- -1.18%
- 1M
- -0.60%
- YTD
- -14.48%
- 6M
- -15.77%
- 1Y
- -11.77%
- 3Y*
- 8.85%
- 5Y*
- 11.09%
- 10Y*
- 24.64%
QUAL vs. MSFT - 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% |
MSFT Microsoft Corporation | -14.48% | 15.58% | 12.93% | 58.19% | -28.02% | 52.48% | 42.53% | 57.56% | 20.80% | 40.73% |
Correlation
The correlation between QUAL and MSFT is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.40 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.60 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.71 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.71 |
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 MSFT has dropped to 0.40 - well below their long-term average of 0.69, suggesting their price drivers have been diverging.
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Return for Risk
QUAL vs. MSFT — Risk / Return Rank
QUAL
MSFT
QUAL vs. MSFT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality Factor ETF (QUAL) and Microsoft Corporation (MSFT). 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 | MSFT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.12 | ||
| Sortino ratioReturn per unit of downside risk | +2.83 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 0.94 | +0.36 |
| Calmar ratioReturn relative to maximum drawdown | 2.19 | -0.35 | +2.54 |
| Martin ratioReturn relative to average drawdown | 9.96 | -0.73 | +10.69 |
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 | MSFT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.65 | -0.47 | +2.12 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.68 | 0.42 | +0.27 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.79 | 0.91 | -0.13 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.80 | 0.74 | +0.05 |
Drawdowns
QUAL vs. MSFT - Drawdown Comparison
The maximum QUAL drawdown since its inception was -34.06%, smaller than the maximum MSFT drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for QUAL and MSFT.
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Drawdown Indicators
| QUAL | MSFT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.06% | -69.38% | +35.32% |
Max Drawdown (1Y)Largest decline over 1 year | -9.03% | -33.91% | +24.88% |
Max Drawdown (3Y)Largest decline over 3 years | -18.00% | -33.91% | +15.91% |
Max Drawdown (5Y)Largest decline over 5 years | -28.23% | -37.15% | +8.92% |
Max Drawdown (10Y)Largest decline over 10 years | -34.06% | -37.15% | +3.09% |
Current DrawdownCurrent decline from peak | -1.61% | -23.56% | +21.95% |
Average DrawdownAverage peak-to-trough decline | -4.10% | -21.78% | +17.68% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.98% | 16.13% | -14.15% |
Volatility
QUAL vs. MSFT - Volatility Comparison
The current volatility for iShares MSCI USA Quality Factor ETF (QUAL) is 3.12%, while Microsoft Corporation (MSFT) has a volatility of 10.25%. This indicates that QUAL experiences smaller price fluctuations and is considered to be less risky than MSFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| QUAL | MSFT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.12% | 10.25% | -7.13% |
Volatility (6M)Calculated over the trailing 6-month period | 9.28% | 22.36% | -13.08% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.01% | 25.31% | -13.30% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.35% | 26.64% | -9.29% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.11% | 27.06% | -8.95% |
Dividends
QUAL vs. MSFT - Dividend Comparison
QUAL's dividend yield for the trailing twelve months is around 0.88%, more than MSFT's 0.86% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MSFT Microsoft Corporation | 0.86% | 0.70% | 0.73% | 0.74% | 1.06% | 0.68% | 0.94% | 1.20% | 1.69% | 1.86% | 2.37% | 2.33% |
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 MSFT have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MSFT has higher volatility (10.25%) compared to QUAL (3.12%). In terms of maximum drawdown, QUAL dropped -34.06% vs MSFT's -69.38%.
QUAL currently has the higher Sharpe Ratio (1.65 vs -0.47), 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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