QUAL vs. VCIT
QUAL (iShares MSCI USA Quality Factor ETF) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both exchange-traded funds - QUAL is a Large Cap Blend Equities fund tracking the MSCI USA Sector Neutral Quality Index, while VCIT is a Corporate Bonds fund tracking the Bloomberg U.S. 5-10 Year Corporate Bond Index. Both are passively managed. Over the past 10 years, QUAL returned 14.46%/yr vs 2.93%/yr for VCIT. At a 0.13 correlation, their price movements are largely independent. QUAL charges 0.15%/yr vs 0.03%/yr for VCIT.
Performance
QUAL vs. VCIT - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, QUAL achieves a 9.44% return, which is significantly higher than VCIT's 0.41% return. Over the past 10 years, QUAL has outperformed VCIT with an annualized return of 14.46%, while VCIT has yielded a comparatively lower 2.93% annualized return.
QUAL
- 1D
- 0.47%
- 1M
- 3.07%
- YTD
- 9.44%
- 6M
- 9.29%
- 1Y
- 22.87%
- 3Y*
- 19.30%
- 5Y*
- 11.97%
- 10Y*
- 14.46%
VCIT
- 1D
- -0.07%
- 1M
- 0.96%
- YTD
- 0.41%
- 6M
- 0.89%
- 1Y
- 6.00%
- 3Y*
- 6.37%
- 5Y*
- 1.11%
- 10Y*
- 2.93%
QUAL vs. VCIT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
QUAL iShares MSCI USA Quality Factor ETF | 9.44% | 12.65% | 22.29% | 30.88% | -20.50% | 26.94% | 17.04% | 33.89% | -5.70% | 22.26% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 0.41% | 9.34% | 3.20% | 8.98% | -13.98% | -1.77% | 9.46% | 14.10% | -1.74% | 5.31% |
Correlation
The correlation between QUAL and VCIT is 0.45, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.45 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.33 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.32 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.21 |
Correlation (All Time) Calculated using the full available price history since Jul 18, 2013 | 0.13 |
Over the past year, QUAL and VCIT have become more correlated (0.45) than their long-term average of 0.13, meaning their price movements have been converging.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
QUAL vs. VCIT — Risk / Return Rank
QUAL
VCIT
QUAL vs. VCIT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality Factor ETF (QUAL) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT). 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 | VCIT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.37 | ||
| Sortino ratioReturn per unit of downside risk | +0.44 | ||
| Omega ratioGain probability vs. loss probability | 1.31 | 1.24 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 2.32 | 1.88 | +0.44 |
| Martin ratioReturn relative to average drawdown | 10.60 | 6.07 | +4.53 |
Loading charts...
Drawdowns
QUAL vs. VCIT - Drawdown Comparison
The maximum QUAL drawdown since its inception was -34.06%, which is greater than VCIT's maximum drawdown of -20.56%. Use the drawdown chart below to compare losses from any high point for QUAL and VCIT.
Loading charts...
Drawdown Indicators
| QUAL | VCIT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.06% | -20.56% | -13.50% |
Max Drawdown (1Y)Largest decline over 1 year | -9.03% | -2.96% | -6.07% |
Max Drawdown (3Y)Largest decline over 3 years | -18.00% | -6.11% | -11.89% |
Max Drawdown (5Y)Largest decline over 5 years | -28.23% | -20.56% | -7.67% |
Max Drawdown (10Y)Largest decline over 10 years | -34.06% | -20.56% | -13.50% |
Current DrawdownCurrent decline from peak | -0.19% | -1.13% | +0.94% |
Average DrawdownAverage peak-to-trough decline | -4.10% | -3.16% | -0.94% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.99% | 0.92% | +1.07% |
Volatility
QUAL vs. VCIT - Volatility Comparison
iShares MSCI USA Quality Factor ETF (QUAL) has a higher volatility of 3.63% compared to Vanguard Intermediate-Term Corporate Bond ETF (VCIT) at 1.48%. This indicates that QUAL's price experiences larger fluctuations and is considered to be riskier than VCIT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| QUAL | VCIT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.63% | 1.48% | +2.15% |
Volatility (6M)Calculated over the trailing 6-month period | 9.43% | 3.15% | +6.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.10% | 4.10% | +8.00% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.36% | 6.62% | +10.74% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.11% | 6.28% | +11.83% |
QUAL vs. VCIT - Expense Ratio Comparison
QUAL has a 0.15% expense ratio, which is higher than VCIT's 0.03% 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. VCIT - Dividend Comparison
QUAL's dividend yield for the trailing twelve months is around 0.87%, less than VCIT's 4.79% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 4.79% | 4.62% | 4.43% | 3.72% | 3.03% | 2.87% | 2.78% | 3.37% | 3.61% | 3.21% | 3.29% | 3.34% |
Frequently Asked Questions
QUAL and VCIT have a correlation of 0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
QUAL has higher volatility (3.63%) compared to VCIT (1.48%). In terms of maximum drawdown, QUAL dropped -34.06% vs VCIT's -20.56%.
On 10-year performance, QUAL leads with 14.46% vs 2.93% for VCIT. On fees, VCIT is cheaper at 0.03% per year. On volatility, VCIT has been the lower-risk option at 1.48%. 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 14.46% return vs 2.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCIT is cheaper with a 0.03% expense ratio, compared with 0.15% for QUAL.
VCIT has the higher dividend yield at 4.79%, compared with 0.87% for QUAL.
QUAL is categorized as Large Cap Blend Equities, while VCIT is Corporate Bonds. QUAL tracks MSCI USA Sector Neutral Quality Index, while VCIT tracks Bloomberg U.S. 5-10 Year Corporate Bond Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for QUAL and 0.03% for VCIT.
QUAL currently has the higher Sharpe Ratio (1.74 vs 1.36), 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.
Find the right allocation for QUAL and VCIT
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer