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QUAL vs. QLC
Performance
Return for Risk
Drawdowns
Volatility
Dividends

QUAL vs. QLC

Last updated Aug 6, 2026
Documentation

QUAL (iShares MSCI USA Quality Factor ETF) and QLC (FlexShares US Quality Large Cap Index Fund) are both Quality Factor funds - QUAL tracks the MSCI USA Sector Neutral Quality Index while QLC tracks the Northern Trust Quality Large Cap Index. Both are passively managed. Over the past 10 years, QUAL returned 14.32%/yr vs 14.85%/yr for QLC. Their correlation of 0.87 means they have usually moved in the same direction. QUAL charges 0.15%/yr vs 0.25%/yr for QLC.

Performance

QUAL vs. QLC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Quality Factor ETF (QUAL) and FlexShares US Quality Large Cap Index Fund (QLC). 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 13.64% return, which is significantly lower than QLC's 15.47% return. Both investments have delivered pretty close results over the past 10 years, with QUAL having a 14.32% annualized return and QLC not far ahead at 14.85%.

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%

QLC

1D
-0.18%
1M
2.85%
6M
14.24%
YTD
15.47%
1Y
30.15%
3Y*
24.78%
5Y*
14.95%
10Y*
14.85%
ALL TIME*
14.60%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

PositionAvg. Volume Value (2W)Avg. Volume Value (1M)Avg. Volume Value (3M)

QLC

FlexShares US Quality Large Cap Index Fund
$3.21M$3.99M$3.64M

QUAL

iShares MSCI USA Quality Factor ETF
$231.95M$239.34M$386.30M

QUAL vs. QLC - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
QLC
FlexShares US Quality Large Cap Index Fund		15.47%23.26%26.71%26.02%-17.21%28.46%13.64%24.51%-8.12%21.73%

Correlation

The correlation between QUAL and QLC is 0.93, 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.

0.93

Correlation (3Y)
Balances recent behavior with more history.

0.95

Correlation (5Y)
Shows whether the relationship held over a longer period.

0.96

Correlation (10Y)
Provides a long-term view across more market conditions.

0.91

Correlation (All Time)
Calculated using the full available price history since Sep 24, 2015

0.87

The correlation between QUAL and QLC has been stable across timeframes, ranging from 0.87 to 0.96 - a consistent structural relationship.

QUAL vs. QLC - Sectors Allocation Comparison

Sectors
QUAL
QLC

Technology

40.2%
38.0%

Financial Services

10.9%
13.6%

Communication Services

10.3%
10.2%

Healthcare

9.2%
10.0%

Consumer Cyclical

9.0%
7.2%

Industrials

7.4%
5.8%

Consumer Defensive

4.3%
3.5%

Energy

2.9%
2.3%

Utilities

2.1%
3.8%

Basic Materials

1.9%
2.1%

Real Estate

1.7%
2.8%

Technology

QUAL
40.2%
QLC
38.0%

Financial Services

QUAL
10.9%
QLC
13.6%

Communication Services

QUAL
10.3%
QLC
10.2%

Healthcare

QUAL
9.2%
QLC
10.0%

Consumer Cyclical

QUAL
9.0%
QLC
7.2%

Industrials

QUAL
7.4%
QLC
5.8%

Consumer Defensive

QUAL
4.3%
QLC
3.5%

Energy

QUAL
2.9%
QLC
2.3%

Utilities

QUAL
2.1%
QLC
3.8%

Basic Materials

QUAL
1.9%
QLC
2.1%

Real Estate

QUAL
1.7%
QLC
2.8%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares MSCI USA Quality Factor ETF

FlexShares US Quality Large Cap Index Fund

Often compared with QUAL:
QUAL vs. SPHQQUAL vs. SPYQUAL vs. MTUMQUAL vs. USMVQUAL vs. VOOQUAL vs. IVVQUAL vs. SCHD
Often compared with QLC:
QLC vs. VOOQLC vs. SPHQQLC vs. QQQMQLC vs. BDGSQLC vs. ESMVQLC vs. AUSFQLC vs. JQUA

Return for Risk

QUAL vs. QLC — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.
QUAL
QUAL Risk / Return Rank: 7373
Overall Rank
QUAL Sharpe Ratio Rank: 7474
Sharpe Ratio Rank
QUAL Sortino Ratio Rank: 7474
Sortino Ratio Rank
QUAL Omega Ratio Rank: 7272
Omega Ratio Rank
QUAL Calmar Ratio Rank: 6565
Calmar Ratio Rank
QUAL Martin Ratio Rank: 7979
Martin Ratio Rank
QLC
QLC Risk / Return Rank: 8686
Overall Rank
QLC Sharpe Ratio Rank: 8888
Sharpe Ratio Rank
QLC Sortino Ratio Rank: 8686
Sortino Ratio Rank
QLC Omega Ratio Rank: 8585
Omega Ratio Rank
QLC Calmar Ratio Rank: 8383
Calmar Ratio Rank
QLC Martin Ratio Rank: 8989
Martin Ratio Rank
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. QLC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality Factor ETF (QUAL) and FlexShares US Quality Large Cap Index Fund (QLC). 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.

QUALQLCDifference
Sharpe ratioReturn per unit of total volatility
1.92
2.29

-0.37

Sortino ratioReturn per unit of downside risk
2.71
3.16

-0.44

Omega ratioGain probability vs. loss probability

1.34

1.41

-0.06

Calmar ratioReturn relative to maximum drawdown

2.60

3.43

-0.82

Martin ratioReturn relative to average drawdown

11.67

15.28

-3.61

QUAL vs. QLC - Sharpe Ratio Comparison

The current QUAL Sharpe Ratio is 1.92, which is comparable to the QLC Sharpe Ratio of 2.29. The chart below compares the historical Sharpe Ratios of QUAL and QLC, 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. QLC - Drawdown Comparison

The maximum QUAL drawdown since its inception was -34.06%, smaller than the maximum QLC drawdown of -35.86%. Use the drawdown chart below to compare losses from any high point for QUAL and QLC.

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Drawdown Indicators

QUALQLCDifference

Max Drawdown

Largest peak-to-trough decline

-34.06%

-35.86%

+1.80%

Max Drawdown (1Y)

Largest decline over 1 year

-9.03%

-8.84%

-0.19%

Max Drawdown (3Y)

Largest decline over 3 years

-18.00%

-18.49%

+0.49%

Max Drawdown (5Y)

Largest decline over 5 years

-28.23%

-23.81%

-4.42%

Max Drawdown (10Y)

Largest decline over 10 years

-34.06%

-35.86%

+1.80%

Current Drawdown

Current decline from peak

0.00%

-0.18%

+0.18%

Average Drawdown

Average peak-to-trough decline

-4.06%

-4.48%

+0.42%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.01%

1.98%

+0.03%

Volatility

QUAL vs. QLC - Volatility Comparison

The current volatility for iShares MSCI USA Quality Factor ETF (QUAL) is 3.30%, while FlexShares US Quality Large Cap Index Fund (QLC) has a volatility of 3.87%. This indicates that QUAL experiences smaller price fluctuations and is considered to be less risky than QLC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

QUALQLCDifference

Volatility (1M)

Calculated over the trailing 1-month period

3.30%

3.87%

-0.57%

Volatility (6M)

Calculated over the trailing 6-month period

9.69%

10.48%

-0.79%

Volatility (1Y)

Calculated over the trailing 1-year period

12.27%

13.22%

-0.95%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.40%

16.94%

+0.46%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.10%

18.41%

-0.31%

QUAL vs. QLC - Expense Ratio Comparison

QUAL has a 0.15% expense ratio, which is lower than QLC's 0.25% expense ratio. Despite the difference, 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. QLC - Dividend Comparison

QUAL's dividend yield for the trailing twelve months is around 0.84%, less than QLC's 0.90% yield.

PositionTTM20252024202320222021202020192018201720162015
QLC
FlexShares US Quality Large Cap Index Fund		0.90%0.94%1.03%1.26%1.46%0.96%1.40%1.91%1.82%1.29%1.80%0.64%
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

With a correlation of 0.93, QUAL and QLC 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.

QLC has higher volatility (3.87%) compared to QUAL (3.30%). In terms of maximum drawdown, QUAL dropped -34.06% vs QLC's -35.86%.

On 10-year performance, QLC leads with 14.85% vs 14.32% for QUAL. On fees, QUAL is cheaper at 0.15% per year. 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.

Over the 10-year period, QLC has performed better with a 14.85% return vs 14.32%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

QUAL is cheaper with a 0.15% expense ratio, compared with 0.25% for QLC.

QLC has the higher dividend yield at 0.90%, compared with 0.84% for QUAL.

QUAL tracks MSCI USA Sector Neutral Quality Index, while QLC tracks Northern Trust Quality Large Cap Index. They also come from different issuers: iShares and Northern Trust. Their fees differ too: 0.15% for QUAL and 0.25% for QLC.

QLC currently has the higher Sharpe Ratio (2.29 vs 1.92), 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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