QUAL vs. SRHQ

Last updated Aug 4, 2026

QUAL (iShares MSCI USA Quality Factor ETF) and SRHQ (SRH U.S. Quality ETF) are both Quality Factor funds - QUAL tracks the MSCI USA Sector Neutral Quality Index while SRHQ tracks the SRH US Quality Index - Benchmark TR Gross. Both are passively managed. Over the past 3 years, QUAL returned 18.73%/yr vs 18.54%/yr for SRHQ. Their 0.78 correlation means they have sometimes moved together and sometimes differently. QUAL charges 0.15%/yr vs 0.35%/yr for SRHQ.

Performance

QUAL vs. SRHQ - Performance Comparison

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

Returns By Period

In the year-to-date period, QUAL achieves a 12.08% return, which is significantly lower than SRHQ's 22.87% return.

QUAL

• 1D: 1.10%
• 1M: 1.52%
• 6M: 9.27%
• YTD: 12.08%
• 1Y: 22.77%
• 3Y*: 18.73%
• 5Y*: 11.26%
• 10Y*: 14.16%
• ALL TIME*: 13.75%

SRHQ

• 1D: 1.74%
• 1M: 3.63%
• 6M: 19.35%
• YTD: 22.87%
• 1Y: 33.57%
• 3Y*: 18.54%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 19.37%

*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)
QUAL iShares MSCI USA Quality Factor ETF	$217.13M	$238.90M	$384.89M
SRHQ SRH U.S. Quality ETF	$119.20K	$66.00K	$31.28K

QUAL vs. SRHQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
QUAL iShares MSCI USA Quality Factor ETF	12.08%	12.65%	22.29%	30.88%	4.10%
SRHQ SRH U.S. Quality ETF	22.87%	7.34%	16.49%	21.81%	5.22%

Correlation

The correlation between QUAL and SRHQ is 0.69, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.69
Correlation (3Y) Balances recent behavior with more history.	0.75
Correlation (All Time) Calculated using the full available price history since Oct 5, 2022	0.78

The correlation between QUAL and SRHQ has been stable across timeframes, ranging from 0.69 to 0.78 - a consistent structural relationship.

QUAL vs. SRHQ - Sectors Allocation Comparison

Sectors	QUAL	SRHQ
Technology	40.2%	21.9%
Financial Services	10.9%	10.2%
Communication Services	10.3%	2.1%
Healthcare	9.2%	21.4%
Consumer Cyclical	9.0%	11.3%
Industrials	7.4%	20.4%
Consumer Defensive	4.3%	5.2%
Energy	2.9%	1.2%
Utilities	2.1%	1.2%
Basic Materials	1.9%	2.7%
Real Estate	1.7%	1.2%

Return for Risk

QUAL vs. SRHQ — Risk / Return Rank

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

QUAL

QUAL Risk / Return Rank: 78
QUAL Sharpe Ratio Rank: 80
QUAL Sortino Ratio Rank: 80
QUAL Omega Ratio Rank: 78
QUAL Calmar Ratio Rank: 71
QUAL Martin Ratio Rank: 83

SRHQ

SRHQ Risk / Return Rank: 90
SRHQ Sharpe Ratio Rank: 88
SRHQ Sortino Ratio Rank: 88
SRHQ Omega Ratio Rank: 84
SRHQ Calmar Ratio Rank: 94
SRHQ Martin Ratio Rank: 94

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. SRHQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality Factor ETF (QUAL) and SRH U.S. Quality ETF (SRHQ). 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	SRHQ	Difference
Sharpe ratio: Return per unit of total volatility	1.86	2.28	-0.42
Sortino ratio: Return per unit of downside risk	2.63	3.20	-0.57
Omega ratio: Gain probability vs. loss probability	1.33	1.39	-0.06
Calmar ratio: Return relative to maximum drawdown	2.53	5.35	-2.82
Martin ratio: Return relative to average drawdown	11.33	19.43	-8.09

QUAL vs. SRHQ - Sharpe Ratio Comparison

The current QUAL Sharpe Ratio is 1.86, which is comparable to the SRHQ Sharpe Ratio of 2.28. The chart below compares the historical Sharpe Ratios of QUAL and SRHQ, 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. SRHQ - Drawdown Comparison

The maximum QUAL drawdown since its inception was -34.06%, which is greater than SRHQ's maximum drawdown of -18.50%. Use the drawdown chart below to compare losses from any high point for QUAL and SRHQ.

Drawdown Indicators

	QUAL	SRHQ	Difference
Max Drawdown Largest peak-to-trough decline	-34.06%	-18.50%	-15.56%
Max Drawdown (1Y) Largest decline over 1 year	-9.03%	-6.31%	-2.72%
Max Drawdown (3Y) Largest decline over 3 years	-18.00%	-18.50%	+0.50%
Max Drawdown (5Y) Largest decline over 5 years	-28.23%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-34.06%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.07%	-2.98%	-1.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.01%	1.73%	+0.28%

Volatility

QUAL vs. SRHQ - Volatility Comparison

The current volatility for iShares MSCI USA Quality Factor ETF (QUAL) is 3.07%, while SRH U.S. Quality ETF (SRHQ) has a volatility of 4.61%. This indicates that QUAL experiences smaller price fluctuations and is considered to be less risky than SRHQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QUAL	SRHQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.07%	4.61%	-1.54%
Volatility (6M) Calculated over the trailing 6-month period	9.70%	11.21%	-1.51%
Volatility (1Y) Calculated over the trailing 1-year period	12.33%	14.83%	-2.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.39%	15.97%	+1.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.10%	15.97%	+2.13%

QUAL vs. SRHQ - Expense Ratio Comparison

QUAL has a 0.15% expense ratio, which is lower than SRHQ's 0.35% expense ratio.

Dividends

QUAL vs. SRHQ - Dividend Comparison

QUAL's dividend yield for the trailing twelve months is around 0.85%, more than SRHQ's 0.68% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QUAL iShares MSCI USA Quality Factor ETF	0.85%	0.94%	1.02%	1.23%	1.59%	1.20%	1.39%	1.60%	2.00%	1.76%	1.96%	1.63%
SRHQ SRH U.S. Quality ETF	0.68%	0.76%	0.66%	0.84%	0.27%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both QUAL and SRHQ in my portfolio?

QUAL and SRHQ have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QUAL or SRHQ?

SRHQ has higher volatility (4.61%) compared to QUAL (3.07%). In terms of maximum drawdown, QUAL dropped -34.06% vs SRHQ's -18.50%.

Which ETF is better, QUAL or SRHQ?

On 3-year performance, QUAL leads with 18.73% vs 18.54% for SRHQ. On fees, QUAL is cheaper at 0.15% per year. On volatility, QUAL has been the lower-risk option at 3.07%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QUAL or SRHQ?

Over the 3-year period, QUAL has performed better with a 18.73% return vs 18.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QUAL or SRHQ?

QUAL is cheaper with a 0.15% expense ratio, compared with 0.35% for SRHQ.

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

QUAL has the higher dividend yield at 0.85%, compared with 0.68% for SRHQ.

What is the main difference between QUAL and SRHQ?

QUAL tracks MSCI USA Sector Neutral Quality Index, while SRHQ tracks SRH US Quality Index - Benchmark TR Gross. They also come from different issuers: iShares and SRH. Their fees differ too: 0.15% for QUAL and 0.35% for SRHQ.

Which has better risk-adjusted returns?

SRHQ currently has the higher Sharpe Ratio (2.28 vs 1.86), 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.