QUAL vs. SPY

Last updated Apr 1, 2026

Compare and contrast key facts about iShares MSCI USA Quality Factor ETF (QUAL) and State Street SPDR S&P 500 ETF (SPY).

QUAL and SPY are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. QUAL is a passively managed fund by iShares that tracks the performance of the MSCI USA Sector Neutral Quality Index. It was launched on Jul 18, 2013. SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993. Both QUAL and SPY are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

QUAL vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Quality Factor ETF (QUAL) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

QUAL vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QUAL iShares MSCI USA Quality Factor ETF	-3.22%	12.65%	22.29%	30.88%	-20.50%	26.94%	17.04%	33.89%	-5.70%	22.26%
SPY State Street SPDR S&P 500 ETF	-4.37%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Returns By Period

In the year-to-date period, QUAL achieves a -3.22% return, which is significantly higher than SPY's -4.37% return. Over the past 10 years, QUAL has underperformed SPY with an annualized return of 12.94%, while SPY has yielded a comparatively higher 13.98% annualized return.

QUAL

• 1D: 2.85%
• 1M: -6.17%
• YTD: -3.22%
• 6M: -0.87%
• 1Y: 13.35%
• 3Y*: 16.91%
• 5Y*: 10.60%
• 10Y*: 12.94%

SPY

• 1D: 2.91%
• 1M: -4.94%
• YTD: -4.37%
• 6M: -1.82%
• 1Y: 17.59%
• 3Y*: 18.19%
• 5Y*: 11.69%
• 10Y*: 13.98%

*Multi-year figures are annualized to reflect compound growth (CAGR)

QUAL vs. SPY - Expense Ratio Comparison

QUAL has a 0.15% expense ratio, which is higher than SPY's 0.09% 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%.

QUAL

iShares MSCI USA Quality Factor ETF

SPY

State Street SPDR S&P 500 ETF

Return for Risk

QUAL vs. SPY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

QUAL

QUAL Risk / Return Rank: 51
QUAL Sharpe Ratio Rank: 45
QUAL Sortino Ratio Rank: 48
QUAL Omega Ratio Rank: 48
QUAL Calmar Ratio Rank: 54
QUAL Martin Ratio Rank: 62

SPY

SPY Risk / Return Rank: 64
SPY Sharpe Ratio Rank: 56
SPY Sortino Ratio Rank: 60
SPY Omega Ratio Rank: 65
SPY Calmar Ratio Rank: 65
SPY Martin Ratio Rank: 75

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. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality Factor ETF (QUAL) and State Street SPDR S&P 500 ETF (SPY). 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	SPY	Difference
Sharpe ratio Return per unit of total volatility	0.77	0.93	-0.16
Sortino ratio Return per unit of downside risk	1.22	1.45	-0.24
Omega ratio Gain probability vs. loss probability	1.17	1.22	-0.05
Calmar ratio Return relative to maximum drawdown	1.23	1.53	-0.29
Martin ratio Return relative to average drawdown	5.67	7.30	-1.62
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

QUAL vs. SPY - Sharpe Ratio Comparison

The current QUAL Sharpe Ratio is 0.77, which is comparable to the SPY Sharpe Ratio of 0.93. The chart below compares the historical Sharpe Ratios of QUAL and SPY, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	QUAL	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.77	0.93	-0.16
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.61	0.69	-0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.72	0.78	-0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.75	0.56	+0.19

Correlation

The correlation between QUAL and SPY is 0.97, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.

Dividends

QUAL vs. SPY - Dividend Comparison

QUAL's dividend yield for the trailing twelve months is around 0.98%, less than SPY's 1.14% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QUAL iShares MSCI USA Quality Factor ETF	0.98%	0.94%	1.02%	1.23%	1.59%	1.20%	1.39%	1.60%	2.00%	1.76%	1.96%	1.63%
SPY State Street SPDR S&P 500 ETF	1.14%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Drawdowns

QUAL vs. SPY - Drawdown Comparison

The maximum QUAL drawdown since its inception was -34.06%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for QUAL and SPY.

Drawdown Indicators

	QUAL	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-34.06%	-55.19%	+21.13%
Max Drawdown (1Y) Largest decline over 1 year	-11.52%	-12.05%	+0.53%
Max Drawdown (5Y) Largest decline over 5 years	-28.23%	-24.50%	-3.73%
Max Drawdown (10Y) Largest decline over 10 years	-34.06%	-33.72%	-0.34%
Current Drawdown Current decline from peak	-6.44%	-6.24%	-0.20%
Average Drawdown Average peak-to-trough decline	-4.15%	-9.09%	+4.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.50%	2.52%	-0.02%

Volatility

QUAL vs. SPY - Volatility Comparison

iShares MSCI USA Quality Factor ETF (QUAL) and State Street SPDR S&P 500 ETF (SPY) have volatilities of 5.37% and 5.31%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QUAL	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.37%	5.31%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	9.30%	9.47%	-0.17%
Volatility (1Y) Calculated over the trailing 1-year period	17.47%	19.05%	-1.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.34%	17.06%	+0.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.08%	17.92%	+0.16%