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QUAL vs. TLT
Performance
Return for Risk
Drawdowns
Volatility
Dividends

QUAL vs. TLT

Last updated Jun 4, 2026

QUAL (iShares MSCI USA Quality Factor ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - QUAL is a Large Cap Blend Equities 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 14.27%/yr vs -1.66%/yr for TLT. At a correlation of -0.13, they often move in opposite directions. Both charge a 0.15% expense ratio.

Performance

QUAL vs. TLT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Quality Factor ETF (QUAL) and iShares 20+ Year Treasury Bond ETF (TLT). 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 8.80% return, which is significantly higher than TLT's -0.27% return. Over the past 10 years, QUAL has outperformed TLT with an annualized return of 14.27%, while TLT has yielded a comparatively lower -1.66% annualized return.

QUAL

1D
-0.07%
1M
4.62%
YTD
8.80%
6M
8.86%
1Y
21.68%
3Y*
19.66%
5Y*
11.96%
10Y*
14.27%

TLT

1D
-0.40%
1M
0.81%
YTD
-0.27%
6M
-2.02%
1Y
4.93%
3Y*
-1.80%
5Y*
-6.31%
10Y*
-1.66%
*Multi-year figures are annualized to reflect compound growth (CAGR)

QUAL vs. TLT - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
QUAL
iShares MSCI USA Quality Factor ETF		8.80%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		-0.27%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 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.

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

0.25

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

0.20

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

0.10

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

-0.06

Correlation (All Time)
Calculated using the full available price history since Jul 19, 2013

-0.13

The correlation between QUAL and TLT shifts across timeframes, from -0.13 (all time) to 0.25 (1 year), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

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iShares MSCI USA Quality Factor ETF

iShares 20+ Year Treasury Bond ETF

Often compared with QUAL:
QUAL vs. SPHQQUAL vs. SPYQUAL vs. MTUMQUAL vs. USMVQUAL vs. VOOQUAL vs. IVVQUAL vs. SCHD
Often compared with TLT:
TLT vs. SPYTLT vs. IEFTLT vs. TMFTLT vs. BNDTLT vs. VGLTTLT vs. TLTWTLT vs. EDV

Return for Risk

QUAL vs. TLT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
QUAL
QUAL Risk / Return Rank: 5353
Overall Rank
QUAL Sharpe Ratio Rank: 5353
Sharpe Ratio Rank
QUAL Sortino Ratio Rank: 5353
Sortino Ratio Rank
QUAL Omega Ratio Rank: 5151
Omega Ratio Rank
QUAL Calmar Ratio Rank: 4848
Calmar Ratio Rank
QUAL Martin Ratio Rank: 6060
Martin Ratio Rank
TLT
TLT Risk / Return Rank: 1616
Overall Rank
TLT Sharpe Ratio Rank: 1616
Sharpe Ratio Rank
TLT Sortino Ratio Rank: 1515
Sortino Ratio Rank
TLT Omega Ratio Rank: 1515
Omega Ratio Rank
TLT Calmar Ratio Rank: 1717
Calmar Ratio Rank
TLT Martin Ratio Rank: 1616
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. 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.

QUALTLTDifference
Sharpe ratioReturn per unit of total volatility
1.84
0.51

+1.34

Sortino ratioReturn per unit of downside risk
2.62
0.80

+1.82

Omega ratioGain probability vs. loss probability

1.32

1.09

+0.23

Calmar ratioReturn relative to maximum drawdown

2.41

0.65

+1.76

Martin ratioReturn relative to average drawdown

11.00

1.63

+9.37

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. TLT - Sharpe Ratio Comparison

The current QUAL Sharpe Ratio is 1.84, which is higher than the TLT Sharpe Ratio of 0.51. The chart below compares the historical Sharpe Ratios of QUAL and TLT, 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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Sharpe Ratios by Period

QUALTLTDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.84

0.51

+1.34

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.69

-0.40

+1.09

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.79

-0.11

+0.90

Sharpe Ratio (All Time)

Calculated using the full available price history

0.80

0.26

+0.55

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

QUALTLTDifference

Max Drawdown

Largest peak-to-trough decline

-34.06%

-48.35%

+14.29%

Max Drawdown (1Y)

Largest decline over 1 year

-9.03%

-7.58%

-1.45%

Max Drawdown (3Y)

Largest decline over 3 years

-18.00%

-19.18%

+1.18%

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 Drawdown

Current decline from peak

-0.16%

-40.44%

+40.28%

Average Drawdown

Average peak-to-trough decline

-4.11%

-13.82%

+9.71%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.98%

3.04%

-1.06%

Volatility

QUAL vs. TLT - Volatility Comparison

The current volatility for iShares MSCI USA Quality Factor ETF (QUAL) is 2.51%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.76%. This indicates that QUAL experiences smaller price fluctuations and is considered to be less risky 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

QUALTLTDifference

Volatility (1M)

Calculated over the trailing 1-month period

2.51%

2.76%

-0.25%

Volatility (6M)

Calculated over the trailing 6-month period

9.03%

6.50%

+2.53%

Volatility (1Y)

Calculated over the trailing 1-year period

11.83%

9.77%

+2.06%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.33%

15.87%

+1.46%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.10%

14.91%

+3.19%

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 0.88%, less than TLT's 4.59% yield.

PositionTTM20252024202320222021202020192018201720162015
QUAL
iShares MSCI USA Quality Factor ETF		0.88%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		4.59%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 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

TLT has higher volatility (2.76%) compared to QUAL (2.51%). In terms of maximum drawdown, QUAL dropped -34.06% vs TLT's -48.35%.

On 10-year performance, QUAL leads with 14.27% vs -1.66% for TLT. Both ETFs have the same 0.15% expense ratio. On volatility, QUAL 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 14.27% return vs -1.66%. 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 4.59%, compared with 0.88% for QUAL.

QUAL is categorized as Large Cap Blend Equities, 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 (1.84 vs 0.51), 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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