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QUAL vs. SCHD
Performance
Return for Risk
Drawdowns
Volatility
Dividends

QUAL vs. SCHD

Last updated Jun 19, 2026

QUAL (iShares MSCI USA Quality Factor ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - QUAL is a Large Cap Blend Equities fund tracking the MSCI USA Sector Neutral Quality Index, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 10 years, QUAL returned 14.37%/yr vs 12.48%/yr for SCHD. A 0.80 correlation means they provide meaningful diversification when combined. QUAL charges 0.15%/yr vs 0.06%/yr for SCHD.

Performance

QUAL vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Quality Factor ETF (QUAL) and Schwab U.S. Dividend Equity ETF (SCHD). 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 9.12% return, which is significantly lower than SCHD's 17.13% return. Over the past 10 years, QUAL has outperformed SCHD with an annualized return of 14.37%, while SCHD has yielded a comparatively lower 12.48% annualized return.

QUAL

1D
0.67%
1M
3.21%
YTD
9.12%
6M
9.59%
1Y
23.42%
3Y*
18.63%
5Y*
12.35%
10Y*
14.37%

SCHD

1D
-0.22%
1M
-0.75%
YTD
17.13%
6M
16.92%
1Y
24.22%
3Y*
13.38%
5Y*
9.07%
10Y*
12.48%
*Multi-year figures are annualized to reflect compound growth (CAGR)

QUAL vs. SCHD - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
QUAL
iShares MSCI USA Quality Factor ETF		9.12%12.65%22.29%30.88%-20.50%26.94%17.04%33.89%-5.70%22.26%
SCHD
Schwab U.S. Dividend Equity ETF		17.13%4.34%11.66%4.54%-3.26%29.87%15.03%27.29%-5.56%20.85%

Correlation

The correlation between QUAL and SCHD is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

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

0.44

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

0.57

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

0.70

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

0.77

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

0.80

Over the past year, the correlation between QUAL and SCHD has dropped to 0.44 - well below their long-term average of 0.80, suggesting their price drivers have been diverging.

QUAL vs. SCHD - Sectors Allocation Comparison

Sectors
QUAL
SCHD

Technology

38.8%
19.4%

Communication Services

11.8%
6.0%

Financial Services

10.8%
9.1%

Consumer Cyclical

9.3%
6.7%

Healthcare

8.7%
18.4%

Industrials

7.2%
7.4%

Consumer Defensive

4.4%
18.5%

Energy

3.2%
14.6%

Utilities

2.1%
0.0%

Basic Materials

1.9%
1.2%

Real Estate

1.8%

-

Technology

QUAL
38.8%
SCHD
19.4%

Communication Services

QUAL
11.8%
SCHD
6.0%

Financial Services

QUAL
10.8%
SCHD
9.1%

Consumer Cyclical

QUAL
9.3%
SCHD
6.7%

Healthcare

QUAL
8.7%
SCHD
18.4%

Industrials

QUAL
7.2%
SCHD
7.4%

Consumer Defensive

QUAL
4.4%
SCHD
18.5%

Energy

QUAL
3.2%
SCHD
14.6%

Utilities

QUAL
2.1%
SCHD
0.0%

Basic Materials

QUAL
1.9%
SCHD
1.2%

Real Estate

QUAL
1.8%
SCHD

-

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iShares MSCI USA Quality Factor ETF

Schwab U.S. Dividend Equity ETF

Often compared with QUAL:
QUAL vs. SPHQQUAL vs. SPYQUAL vs. MTUMQUAL vs. USMVQUAL vs. VOOQUAL vs. IVVQUAL vs. GARP
Often compared with SCHD:
SCHD vs. VOOSCHD vs. VYMSCHD vs. SPYSCHD vs. SCHGSCHD vs. JEPISCHD vs. FDVVSCHD vs. VIG

Return for Risk

QUAL vs. SCHD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
QUAL
QUAL Risk / Return Rank: 6262
Overall Rank
QUAL Sharpe Ratio Rank: 6363
Sharpe Ratio Rank
QUAL Sortino Ratio Rank: 6464
Sortino Ratio Rank
QUAL Omega Ratio Rank: 6060
Omega Ratio Rank
QUAL Calmar Ratio Rank: 5757
Calmar Ratio Rank
QUAL Martin Ratio Rank: 6969
Martin Ratio Rank
SCHD
SCHD Risk / Return Rank: 7979
Overall Rank
SCHD Sharpe Ratio Rank: 7575
Sharpe Ratio Rank
SCHD Sortino Ratio Rank: 8282
Sortino Ratio Rank
SCHD Omega Ratio Rank: 7272
Omega Ratio Rank
SCHD Calmar Ratio Rank: 9191
Calmar Ratio Rank
SCHD Martin Ratio Rank: 7474
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. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality Factor ETF (QUAL) and Schwab U.S. Dividend Equity ETF (SCHD). 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.

QUALSCHDDifference
Sharpe ratioReturn per unit of total volatility
1.95
2.20

-0.25

Sortino ratioReturn per unit of downside risk
2.75
3.36

-0.61

Omega ratioGain probability vs. loss probability

1.34

1.39

-0.05

Calmar ratioReturn relative to maximum drawdown

2.60

5.27

-2.67

Martin ratioReturn relative to average drawdown

11.89

12.86

-0.96

QUAL vs. SCHD - Sharpe Ratio Comparison

The current QUAL Sharpe Ratio is 1.95, which is comparable to the SCHD Sharpe Ratio of 2.20. The chart below compares the historical Sharpe Ratios of QUAL and SCHD, 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. SCHD - Drawdown Comparison

The maximum QUAL drawdown since its inception was -34.06%, roughly equal to the maximum SCHD drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for QUAL and SCHD.

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Drawdown Indicators

QUALSCHDDifference

Max Drawdown

Largest peak-to-trough decline

-34.06%

-33.37%

-0.69%

Max Drawdown (1Y)

Largest decline over 1 year

-9.03%

-4.61%

-4.42%

Max Drawdown (3Y)

Largest decline over 3 years

-18.00%

-16.13%

-1.87%

Max Drawdown (5Y)

Largest decline over 5 years

-28.23%

-16.85%

-11.38%

Max Drawdown (10Y)

Largest decline over 10 years

-34.06%

-33.37%

-0.69%

Current Drawdown

Current decline from peak

-1.51%

-2.95%

+1.44%

Average Drawdown

Average peak-to-trough decline

-4.09%

-3.31%

-0.78%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.97%

1.89%

+0.08%

Volatility

QUAL vs. SCHD - Volatility Comparison

iShares MSCI USA Quality Factor ETF (QUAL) has a higher volatility of 4.02% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 3.58%. This indicates that QUAL's price experiences larger fluctuations and is considered to be riskier than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

QUALSCHDDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.02%

3.58%

+0.44%

Volatility (6M)

Calculated over the trailing 6-month period

9.61%

7.75%

+1.86%

Volatility (1Y)

Calculated over the trailing 1-year period

12.10%

11.07%

+1.03%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.38%

14.38%

+3.00%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.12%

16.73%

+1.39%

QUAL vs. SCHD - Expense Ratio Comparison

QUAL has a 0.15% expense ratio, which is higher than SCHD's 0.06% expense ratio. However, 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. SCHD - Dividend Comparison

QUAL's dividend yield for the trailing twelve months is around 0.87%, less than SCHD's 3.31% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
SCHD
Schwab U.S. Dividend Equity ETF		3.31%3.82%3.64%3.49%3.39%2.78%3.16%2.98%3.06%2.63%2.89%2.97%

Frequently Asked Questions

QUAL and SCHD have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

QUAL has higher volatility (4.02%) compared to SCHD (3.58%). In terms of maximum drawdown, QUAL dropped -34.06% vs SCHD's -33.37%.

On 10-year performance, QUAL leads with 14.37% vs 12.48% for SCHD. On fees, SCHD is cheaper at 0.06% per year. On volatility, SCHD has been the lower-risk option at 3.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, QUAL has performed better with a 14.37% return vs 12.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

SCHD is cheaper with a 0.06% expense ratio, compared with 0.15% for QUAL.

SCHD has the higher dividend yield at 3.31%, compared with 0.87% for QUAL.

QUAL is categorized as Large Cap Blend Equities, while SCHD is Dividend. QUAL tracks MSCI USA Sector Neutral Quality Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: iShares and Charles Schwab. Their fees differ too: 0.15% for QUAL and 0.06% for SCHD.

SCHD currently has the higher Sharpe Ratio (2.20 vs 1.95), 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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