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QUAL vs. QQQ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

QUAL vs. QQQ

Last updated Jun 14, 2026

QUAL (iShares MSCI USA Quality Factor ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - QUAL is a Large Cap Blend Equities fund tracking the MSCI USA Sector Neutral Quality Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, QUAL returned 14.46%/yr vs 21.79%/yr for QQQ. Their correlation of 0.88 suggests significant overlap in exposure. QUAL charges 0.15%/yr vs 0.18%/yr for QQQ.

Performance

QUAL vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Quality Factor ETF (QUAL) and Invesco QQQ ETF (QQQ). 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 9.44% return, which is significantly lower than QQQ's 17.57% return. Over the past 10 years, QUAL has underperformed QQQ with an annualized return of 14.46%, while QQQ has yielded a comparatively higher 21.79% 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%

QQQ

1D
0.59%
1M
0.22%
YTD
17.57%
6M
17.85%
1Y
37.55%
3Y*
26.43%
5Y*
16.85%
10Y*
21.79%
*Multi-year figures are annualized to reflect compound growth (CAGR)

QUAL vs. QQQ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
QQQ
Invesco QQQ ETF		17.57%20.77%25.58%54.86%-32.58%27.42%48.62%38.96%-0.13%32.66%

Correlation

The correlation between QUAL and QQQ is 0.84, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

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

0.84

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

0.89

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

0.91

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

0.88

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

0.88

The correlation between QUAL and QQQ has been stable across timeframes, ranging from 0.84 to 0.91 - a consistent structural relationship.

QUAL vs. QQQ - Sectors Allocation Comparison

Sectors
QUAL
QQQ

Technology

38.8%
58.7%

Communication Services

11.8%
14.3%

Financial Services

10.8%
0.2%

Consumer Cyclical

9.3%
11.4%

Healthcare

8.7%
3.7%

Industrials

7.2%
2.6%

Consumer Defensive

4.4%
6.4%

Energy

3.2%
0.5%

Utilities

2.1%
1.2%

Basic Materials

1.9%
1.0%

Real Estate

1.8%
0.1%

Technology

QUAL
38.8%
QQQ
58.7%

Communication Services

QUAL
11.8%
QQQ
14.3%

Financial Services

QUAL
10.8%
QQQ
0.2%

Consumer Cyclical

QUAL
9.3%
QQQ
11.4%

Healthcare

QUAL
8.7%
QQQ
3.7%

Industrials

QUAL
7.2%
QQQ
2.6%

Consumer Defensive

QUAL
4.4%
QQQ
6.4%

Energy

QUAL
3.2%
QQQ
0.5%

Utilities

QUAL
2.1%
QQQ
1.2%

Basic Materials

QUAL
1.9%
QQQ
1.0%

Real Estate

QUAL
1.8%
QQQ
0.1%

Compare stocks, funds, or ETFs

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iShares MSCI USA Quality Factor ETF

Invesco QQQ ETF

Often compared with QUAL:
QUAL vs. SPHQQUAL vs. SPYQUAL vs. MTUMQUAL vs. USMVQUAL vs. VOOQUAL vs. IVVQUAL vs. SCHD
Often compared with QQQ:
QQQ vs. SPYQQQ vs. VOOQQQ vs. VGTQQQ vs. TQQQQQQ vs. SMHQQQ vs. QQQMQQQ vs. QQQI

Return for Risk

QUAL vs. QQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
QUAL
QUAL Risk / Return Rank: 5959
Overall Rank
QUAL Sharpe Ratio Rank: 5959
Sharpe Ratio Rank
QUAL Sortino Ratio Rank: 6060
Sortino Ratio Rank
QUAL Omega Ratio Rank: 5656
Omega Ratio Rank
QUAL Calmar Ratio Rank: 5353
Calmar Ratio Rank
QUAL Martin Ratio Rank: 6767
Martin Ratio Rank
QQQ
QQQ Risk / Return Rank: 7171
Overall Rank
QQQ Sharpe Ratio Rank: 7575
Sharpe Ratio Rank
QQQ Sortino Ratio Rank: 7070
Sortino Ratio Rank
QQQ Omega Ratio Rank: 7373
Omega Ratio Rank
QQQ Calmar Ratio Rank: 6969
Calmar Ratio Rank
QQQ Martin Ratio Rank: 7070
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. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality Factor ETF (QUAL) and Invesco QQQ ETF (QQQ). 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.

QUALQQQDifference
Sharpe ratioReturn per unit of total volatility
1.74
2.09

-0.36

Sortino ratioReturn per unit of downside risk
2.46
2.73

-0.27

Omega ratioGain probability vs. loss probability

1.31

1.37

-0.06

Calmar ratioReturn relative to maximum drawdown

2.32

3.01

-0.68

Martin ratioReturn relative to average drawdown

10.60

11.22

-0.62

QUAL vs. QQQ - Sharpe Ratio Comparison

The current QUAL Sharpe Ratio is 1.74, which is comparable to the QQQ Sharpe Ratio of 2.09. The chart below compares the historical Sharpe Ratios of QUAL and QQQ, 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. QQQ - Drawdown Comparison

The maximum QUAL drawdown since its inception was -34.06%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for QUAL and QQQ.

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Drawdown Indicators

QUALQQQDifference

Max Drawdown

Largest peak-to-trough decline

-34.06%

-82.97%

+48.91%

Max Drawdown (1Y)

Largest decline over 1 year

-9.03%

-11.96%

+2.93%

Max Drawdown (3Y)

Largest decline over 3 years

-18.00%

-22.77%

+4.77%

Max Drawdown (5Y)

Largest decline over 5 years

-28.23%

-35.12%

+6.89%

Max Drawdown (10Y)

Largest decline over 10 years

-34.06%

-35.12%

+1.06%

Current Drawdown

Current decline from peak

-0.19%

-3.33%

+3.14%

Average Drawdown

Average peak-to-trough decline

-4.10%

-32.75%

+28.65%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.99%

3.20%

-1.21%

Volatility

QUAL vs. QQQ - Volatility Comparison

The current volatility for iShares MSCI USA Quality Factor ETF (QUAL) is 3.63%, while Invesco QQQ ETF (QQQ) has a volatility of 7.56%. This indicates that QUAL experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

QUALQQQDifference

Volatility (1M)

Calculated over the trailing 1-month period

3.63%

7.56%

-3.93%

Volatility (6M)

Calculated over the trailing 6-month period

9.43%

13.81%

-4.38%

Volatility (1Y)

Calculated over the trailing 1-year period

12.10%

17.19%

-5.09%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.36%

22.55%

-5.19%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.11%

22.38%

-4.27%

QUAL vs. QQQ - Expense Ratio Comparison

QUAL has a 0.15% expense ratio, which is lower than QQQ's 0.18% 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. QQQ - Dividend Comparison

QUAL's dividend yield for the trailing twelve months is around 0.87%, more than QQQ's 0.39% yield.

PositionTTM20252024202320222021202020192018201720162015
QQQ
Invesco QQQ ETF		0.39%0.45%0.56%0.62%0.80%0.43%0.55%0.74%0.91%0.84%1.06%0.99%
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

QUAL and QQQ have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

QQQ has higher volatility (7.56%) compared to QUAL (3.63%). In terms of maximum drawdown, QUAL dropped -34.06% vs QQQ's -82.97%.

On 10-year performance, QQQ leads with 21.79% vs 14.46% for QUAL. 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.

Over the 10-year period, QQQ has performed better with a 21.79% return vs 14.46%. 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 0.18% for QQQ.

QUAL has the higher dividend yield at 0.87%, compared with 0.39% for QQQ.

QUAL is categorized as Large Cap Blend Equities, while QQQ is Nasdaq-100. QUAL tracks MSCI USA Sector Neutral Quality Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.15% for QUAL and 0.18% for QQQ.

QQQ currently has the higher Sharpe Ratio (2.09 vs 1.74), 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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