QUAL vs. VTI
Compare and contrast key facts about iShares Edge MSCI USA Quality Factor ETF (QUAL) and Vanguard Total Stock Market ETF (VTI).
QUAL and VTI 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 Quality Index. It was launched on Jul 16, 2013. VTI is a passively managed fund by Vanguard that tracks the performance of the CRSP US Total Market Index. It was launched on May 24, 2001. Both QUAL and VTI are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: QUAL or VTI.
Key characteristics
| QUAL | VTI | |
|---|---|---|
| YTD Return | 6.39% | 4.91% |
| 1Y Return | 26.86% | 23.63% |
| 3Y Return (Ann) | 8.41% | 6.13% |
| 5Y Return (Ann) | 12.96% | 12.30% |
| 10Y Return (Ann) | 12.51% | 11.76% |
| Sharpe Ratio | 2.01 | 1.83 |
| Daily Std Dev | 12.49% | 12.05% |
| Max Drawdown | -34.06% | -55.45% |
| Current Drawdown | -5.59% | -4.58% |
Correlation
The correlation between QUAL and VTI is 0.96, 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.
Performance
QUAL vs. VTI - Performance Comparison
In the year-to-date period, QUAL achieves a 6.39% return, which is significantly higher than VTI's 4.91% return. Over the past 10 years, QUAL has outperformed VTI with an annualized return of 12.51%, while VTI has yielded a comparatively lower 11.76% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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QUAL vs. VTI - Expense Ratio Comparison
QUAL has a 0.15% expense ratio, which is higher than VTI'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%.
Risk-Adjusted Performance
QUAL vs. VTI - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Edge MSCI USA Quality Factor ETF (QUAL) and Vanguard Total Stock Market ETF (VTI). 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.
Dividends
QUAL vs. VTI - Dividend Comparison
QUAL's dividend yield for the trailing twelve months is around 1.16%, less than VTI's 1.43% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
QUAL iShares Edge MSCI USA Quality Factor ETF | 1.16% | 1.23% | 1.59% | 1.20% | 1.39% | 1.60% | 2.00% | 1.76% | 1.96% | 1.63% | 1.35% | 0.63% |
VTI Vanguard Total Stock Market ETF | 1.43% | 1.44% | 1.66% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% | 1.76% | 1.74% |
Drawdowns
QUAL vs. VTI - Drawdown Comparison
The maximum QUAL drawdown since its inception was -34.06%, smaller than the maximum VTI drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for QUAL and VTI. For additional features, visit the drawdowns tool.
Volatility
QUAL vs. VTI - Volatility Comparison
iShares Edge MSCI USA Quality Factor ETF (QUAL) and Vanguard Total Stock Market ETF (VTI) have volatilities of 4.10% and 3.93%, 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.