QUAL vs. PSET

Last updated Aug 6, 2026

QUAL (iShares MSCI USA Quality Factor ETF) and PSET (Principal Quality ETF) are both Quality Factor funds - QUAL tracks the MSCI USA Sector Neutral Quality Index while PSET tracks the NASDAQ US Price Setters. Both are passively managed. Over the past 10 years, QUAL returned 14.32%/yr vs 13.05%/yr for PSET. Their 0.73 correlation means they have sometimes moved together and sometimes differently. Both charge a 0.15% expense ratio.

Performance

QUAL vs. PSET - Performance Comparison

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

Returns By Period

In the year-to-date period, QUAL achieves a 13.64% return, which is significantly higher than PSET's 6.30% return. Over the past 10 years, QUAL has outperformed PSET with an annualized return of 14.32%, while PSET has yielded a comparatively lower 13.05% annualized return.

QUAL

• 1D: 0.00%
• 1M: 2.90%
• 6M: 11.95%
• YTD: 13.64%
• 1Y: 23.43%
• 3Y*: 19.28%
• 5Y*: 11.42%
• 10Y*: 14.32%
• ALL TIME*: 13.87%

PSET

• 1D: 0.09%
• 1M: 5.26%
• 6M: 8.80%
• YTD: 6.30%
• 1Y: 9.68%
• 3Y*: 13.25%
• 5Y*: 8.72%
• 10Y*: 13.05%
• ALL TIME*: 13.24%

*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)
PSET Principal Quality ETF	$119.71K	$93.90K	$173.26K
QUAL iShares MSCI USA Quality Factor ETF	$231.95M	$239.34M	$386.30M

QUAL vs. PSET - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QUAL iShares MSCI USA Quality Factor ETF	13.64%	12.65%	22.29%	30.88%	-20.50%	26.94%	17.04%	33.89%	-5.70%	22.26%
PSET Principal Quality ETF	6.30%	7.27%	17.65%	24.07%	-16.52%	29.59%	16.20%	34.85%	-2.29%	24.63%

Correlation

The correlation between QUAL and PSET is 0.90, 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.	0.90
Correlation (3Y) Balances recent behavior with more history.	0.93
Correlation (5Y) Shows whether the relationship held over a longer period.	0.92
Correlation (10Y) Provides a long-term view across more market conditions.	0.74
Correlation (All Time) Calculated using the full available price history since Mar 22, 2016	0.73

The correlation between QUAL and PSET shifts across timeframes, from 0.73 (all time) to 0.93 (3 years), reflecting how their relationship changes across market environments.

QUAL vs. PSET - Sectors Allocation Comparison

Sectors	QUAL	PSET
Technology	40.2%	37.4%
Financial Services	10.9%	13.9%
Communication Services	10.3%	6.2%
Healthcare	9.2%	10.9%
Consumer Cyclical	9.0%	5.0%
Industrials	7.4%	20.5%
Consumer Defensive	4.3%	1.1%
Energy	2.9%	1.2%
Utilities	2.1%	-
Basic Materials	1.9%	3.7%
Real Estate	1.7%	-

Return for Risk

QUAL vs. PSET — Risk / Return Rank

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

QUAL

QUAL Risk / Return Rank: 73
QUAL Sharpe Ratio Rank: 74
QUAL Sortino Ratio Rank: 74
QUAL Omega Ratio Rank: 72
QUAL Calmar Ratio Rank: 65
QUAL Martin Ratio Rank: 79

PSET

PSET Risk / Return Rank: 26
PSET Sharpe Ratio Rank: 27
PSET Sortino Ratio Rank: 26
PSET Omega Ratio Rank: 25
PSET Calmar Ratio Rank: 22
PSET Martin Ratio Rank: 27

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. PSET - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality Factor ETF (QUAL) and Principal Quality ETF (PSET). 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	PSET	Difference
Sharpe ratio: Return per unit of total volatility	1.92	0.75	+1.18
Sortino ratio: Return per unit of downside risk	2.71	1.11	+1.60
Omega ratio: Gain probability vs. loss probability	1.34	1.13	+0.21
Calmar ratio: Return relative to maximum drawdown	2.60	0.75	+1.85
Martin ratio: Return relative to average drawdown	11.67	2.46	+9.21

QUAL vs. PSET - Sharpe Ratio Comparison

The current QUAL Sharpe Ratio is 1.92, which is higher than the PSET Sharpe Ratio of 0.75. The chart below compares the historical Sharpe Ratios of QUAL and PSET, 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. PSET - Drawdown Comparison

The maximum QUAL drawdown since its inception was -34.06%, roughly equal to the maximum PSET drawdown of -34.74%. Use the drawdown chart below to compare losses from any high point for QUAL and PSET.

Drawdown Indicators

	QUAL	PSET	Difference
Max Drawdown Largest peak-to-trough decline	-34.06%	-34.74%	+0.68%
Max Drawdown (1Y) Largest decline over 1 year	-9.03%	-12.94%	+3.91%
Max Drawdown (3Y) Largest decline over 3 years	-18.00%	-21.96%	+3.96%
Max Drawdown (5Y) Largest decline over 5 years	-28.23%	-25.61%	-2.62%
Max Drawdown (10Y) Largest decline over 10 years	-34.06%	-34.74%	+0.68%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.06%	-4.55%	+0.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.01%	3.95%	-1.94%

Volatility

QUAL vs. PSET - Volatility Comparison

The current volatility for iShares MSCI USA Quality Factor ETF (QUAL) is 3.30%, while Principal Quality ETF (PSET) has a volatility of 3.63%. This indicates that QUAL experiences smaller price fluctuations and is considered to be less risky than PSET based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QUAL	PSET	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.30%	3.63%	-0.33%
Volatility (6M) Calculated over the trailing 6-month period	9.69%	10.07%	-0.38%
Volatility (1Y) Calculated over the trailing 1-year period	12.27%	13.04%	-0.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.40%	17.62%	-0.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.10%	18.12%	-0.02%

QUAL vs. PSET - Expense Ratio Comparison

Both QUAL and PSET have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

QUAL vs. PSET - Dividend Comparison

QUAL's dividend yield for the trailing twelve months is around 0.84%, more than PSET's 0.67% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSET Principal Quality ETF	0.67%	0.59%	0.69%	0.85%	1.47%	0.89%	1.09%	1.52%	1.33%	1.02%	1.26%	0.00%
QUAL iShares MSCI USA Quality Factor ETF	0.84%	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 PSET in my portfolio?

With a correlation of 0.90, QUAL and PSET 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 PSET?

PSET has higher volatility (3.63%) compared to QUAL (3.30%). In terms of maximum drawdown, QUAL dropped -34.06% vs PSET's -34.74%.

Which ETF is better, QUAL or PSET?

On 10-year performance, QUAL leads with 14.32% vs 13.05% for PSET. Both ETFs have the same 0.15% expense ratio. On volatility, QUAL has been the lower-risk option at 3.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QUAL or PSET?

Over the 10-year period, QUAL has performed better with a 14.32% return vs 13.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QUAL or PSET?

QUAL and PSET have the same expense ratio: 0.15% per year.

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

QUAL has the higher dividend yield at 0.84%, compared with 0.67% for PSET.

What is the main difference between QUAL and PSET?

QUAL tracks MSCI USA Sector Neutral Quality Index, while PSET tracks NASDAQ US Price Setters. They also come from different issuers: iShares and Principal.

Which has better risk-adjusted returns?

QUAL currently has the higher Sharpe Ratio (1.92 vs 0.75), 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.