QUAL vs. TLT
QUAL (iShares MSCI USA Quality Factor ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - QUAL is a Quality Factor fund tracking the MSCI USA Sector Neutral Quality Index, while TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index. Both are passively managed. Over the past 10 years, QUAL returned 14.16%/yr vs -2.33%/yr for TLT. Their -0.12 correlation means they have often moved in opposite directions in the past. Both charge a 0.15% expense ratio.
Performance
QUAL vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, QUAL achieves a 12.08% return, which is significantly higher than TLT's -3.18% return. Over the past 10 years, QUAL has outperformed TLT with an annualized return of 14.16%, while TLT has yielded a comparatively lower -2.33% annualized 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%
TLT
- 1D
- 0.33%
- 1M
- -3.49%
- 6M
- -2.86%
- YTD
- -3.18%
- 1Y
- -2.12%
- 3Y*
- -1.15%
- 5Y*
- -8.33%
- 10Y*
- -2.33%
- ALL TIME*
- 3.48%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $217.13M | $238.90M | $384.89M | |
| $2.39B | $2.06B | $2.20B |
QUAL vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
QUAL iShares MSCI USA Quality Factor ETF | 12.08% | 12.65% | 22.29% | 30.88% | -20.50% | 26.94% | 17.04% | 33.89% | -5.70% | 22.26% |
TLT iShares 20+ Year Treasury Bond ETF | -3.18% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
Correlation
The correlation between QUAL and TLT is 0.29, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.29 |
Correlation (3Y) Balances recent behavior with more history. | 0.20 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.12 |
Correlation (10Y) Provides a long-term view across more market conditions. | -0.05 |
Correlation (All Time) Calculated using the full available price history since Jul 18, 2013 | -0.12 |
The correlation between QUAL and TLT shifts across timeframes, from -0.12 (all time) to 0.29 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
QUAL vs. TLT — Risk / Return Rank
QUAL
TLT
QUAL vs. TLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality Factor ETF (QUAL) and iShares 20+ Year Treasury Bond ETF (TLT). 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 | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.09 | ||
| Sortino ratioReturn per unit of downside risk | +2.89 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 0.97 | +0.36 |
| Calmar ratioReturn relative to maximum drawdown | 2.53 | -0.28 | +2.81 |
| Martin ratioReturn relative to average drawdown | 11.33 | -0.59 | +11.92 |
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Drawdowns
QUAL vs. TLT - Drawdown Comparison
The maximum QUAL drawdown since its inception was -34.06%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for QUAL and TLT.
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Drawdown Indicators
| QUAL | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.06% | -48.35% | +14.29% |
Max Drawdown (1Y)Largest decline over 1 year | -9.03% | -7.74% | -1.29% |
Max Drawdown (3Y)Largest decline over 3 years | -18.00% | -14.79% | -3.21% |
Max Drawdown (5Y)Largest decline over 5 years | -28.23% | -43.70% | +15.47% |
Max Drawdown (10Y)Largest decline over 10 years | -34.06% | -48.35% | +14.29% |
Current DrawdownCurrent decline from peak | 0.00% | -42.17% | +42.17% |
Average DrawdownAverage peak-to-trough decline | -4.07% | -14.00% | +9.93% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.01% | 3.60% | -1.59% |
Volatility
QUAL vs. TLT - Volatility Comparison
iShares MSCI USA Quality Factor ETF (QUAL) has a higher volatility of 3.07% compared to iShares 20+ Year Treasury Bond ETF (TLT) at 2.51%. This indicates that QUAL's price experiences larger fluctuations and is considered to be riskier than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| QUAL | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.07% | 2.51% | +0.56% |
Volatility (6M)Calculated over the trailing 6-month period | 9.70% | 6.84% | +2.86% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.33% | 9.24% | +3.09% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.39% | 15.74% | +1.65% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.10% | 14.83% | +3.27% |
QUAL vs. TLT - Expense Ratio Comparison
Both QUAL and TLT have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
QUAL vs. TLT - Dividend Comparison
QUAL's dividend yield for the trailing twelve months is around 0.85%, less than TLT's 4.75% 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% |
TLT iShares 20+ Year Treasury Bond ETF | 4.75% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
Frequently Asked Questions
QUAL and TLT have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
QUAL has higher volatility (3.07%) compared to TLT (2.51%). In terms of maximum drawdown, QUAL dropped -34.06% vs TLT's -48.35%.
On 10-year performance, QUAL leads with 14.16% vs -2.33% for TLT. Both ETFs have the same 0.15% expense ratio. On volatility, TLT has been the lower-risk option at 2.51%. 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 14.16% return vs -2.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
QUAL and TLT have the same expense ratio: 0.15% per year.
TLT has the higher dividend yield at 4.75%, compared with 0.85% for QUAL.
QUAL is categorized as Quality Factor, while TLT is Government Bonds. QUAL tracks MSCI USA Sector Neutral Quality Index, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index.
QUAL currently has the higher Sharpe Ratio (1.86 vs -0.23), 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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