VFQY vs. GARP
VFQY (Vanguard U.S. Quality Factor ETF) and GARP (iShares MSCI USA Quality GARP ETF) are both Quality Factor funds. VFQY is actively managed, while GARP is passively managed. Over the past 5 years, VFQY returned 9.15%/yr vs 17.57%/yr for GARP. Their 0.76 correlation means they have sometimes moved together and sometimes differently. VFQY charges 0.13%/yr vs 0.15%/yr for GARP.
Performance
VFQY vs. GARP - Performance Comparison
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Returns By Period
In the year-to-date period, VFQY achieves a 14.20% return, which is significantly lower than GARP's 18.78% return.
VFQY
- 1D
- 1.05%
- 1M
- 2.21%
- 6M
- 10.27%
- YTD
- 14.20%
- 1Y
- 23.29%
- 3Y*
- 15.72%
- 5Y*
- 9.15%
- 10Y*
- —
- ALL TIME*
- 11.62%
GARP
- 1D
- 1.62%
- 1M
- 0.39%
- 6M
- 15.63%
- YTD
- 18.78%
- 1Y
- 33.89%
- 3Y*
- 30.65%
- 5Y*
- 17.57%
- 10Y*
- —
- ALL TIME*
- 20.34%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $26.43M | $25.59M | $23.01M | |
| $948.51K | $988.82K | $1.06M |
VFQY vs. GARP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
VFQY Vanguard U.S. Quality Factor ETF | 14.20% | 10.24% | 12.93% | 22.48% | -15.74% | 27.96% | 15.90% |
GARP iShares MSCI USA Quality GARP ETF | 18.78% | 21.49% | 37.42% | 42.86% | -26.75% | 27.99% | 26.51% |
Correlation
The correlation between VFQY and GARP is 0.67, 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. | 0.67 |
Correlation (3Y) Balances recent behavior with more history. | 0.73 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.81 |
Correlation (All Time) Calculated using the full available price history since Jan 16, 2020 | 0.76 |
The correlation between VFQY and GARP shifts across timeframes, from 0.67 (1 year) to 0.81 (5 years), reflecting how their relationship changes across market environments.
VFQY vs. GARP - Sectors Allocation Comparison
Sectors
VFQY
GARP
Technology
Financial Services
Industrials
Consumer Cyclical
Consumer Defensive
-
Healthcare
Communication Services
Basic Materials
Energy
Real Estate
-
Utilities
-
Technology
VFQY
GARP
Financial Services
VFQY
GARP
Industrials
VFQY
GARP
Consumer Cyclical
VFQY
GARP
Consumer Defensive
VFQY
GARP
-
Healthcare
VFQY
GARP
Communication Services
VFQY
GARP
Basic Materials
VFQY
GARP
Energy
VFQY
GARP
Real Estate
VFQY
-
GARP
Utilities
VFQY
-
GARP
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Return for Risk
VFQY vs. GARP — Risk / Return Rank
VFQY
GARP
VFQY vs. GARP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Quality Factor ETF (VFQY) and iShares MSCI USA Quality GARP ETF (GARP). 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.
| VFQY | GARP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.05 | ||
| Sortino ratioReturn per unit of downside risk | +0.22 | ||
| Omega ratioGain probability vs. loss probability | 1.30 | 1.29 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.57 | 2.49 | +0.08 |
| Martin ratioReturn relative to average drawdown | 9.69 | 9.05 | +0.64 |
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Drawdowns
VFQY vs. GARP - Drawdown Comparison
The maximum VFQY drawdown since its inception was -37.41%, which is greater than GARP's maximum drawdown of -31.34%. Use the drawdown chart below to compare losses from any high point for VFQY and GARP.
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Drawdown Indicators
| VFQY | GARP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -37.41% | -31.34% | -6.07% |
Max Drawdown (1Y)Largest decline over 1 year | -9.12% | -13.69% | +4.57% |
Max Drawdown (3Y)Largest decline over 3 years | -20.67% | -23.73% | +3.06% |
Max Drawdown (5Y)Largest decline over 5 years | -25.93% | -30.61% | +4.68% |
Current DrawdownCurrent decline from peak | 0.00% | -2.79% | +2.79% |
Average DrawdownAverage peak-to-trough decline | -6.57% | -7.27% | +0.70% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.41% | 3.76% | -1.35% |
Volatility
VFQY vs. GARP - Volatility Comparison
The current volatility for Vanguard U.S. Quality Factor ETF (VFQY) is 3.12%, while iShares MSCI USA Quality GARP ETF (GARP) has a volatility of 5.74%. This indicates that VFQY experiences smaller price fluctuations and is considered to be less risky than GARP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VFQY | GARP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.12% | 5.74% | -2.62% |
Volatility (6M)Calculated over the trailing 6-month period | 9.58% | 16.02% | -6.44% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.37% | 20.01% | -6.64% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.29% | 22.36% | -4.07% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.73% | 23.92% | -3.19% |
VFQY vs. GARP - Expense Ratio Comparison
VFQY has a 0.13% expense ratio, which is lower than GARP's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VFQY vs. GARP - Dividend Comparison
VFQY's dividend yield for the trailing twelve months is around 1.03%, more than GARP's 0.27% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
GARP iShares MSCI USA Quality GARP ETF | 0.27% | 0.31% | 0.38% | 0.75% | 1.85% | 0.67% | 0.75% | 0.00% | 0.00% |
VFQY Vanguard U.S. Quality Factor ETF | 1.03% | 1.17% | 1.34% | 1.38% | 1.43% | 0.98% | 1.22% | 1.34% | 1.31% |
Frequently Asked Questions
VFQY and GARP have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
GARP has higher volatility (5.74%) compared to VFQY (3.12%). In terms of maximum drawdown, VFQY dropped -37.41% vs GARP's -31.34%.
On 5-year performance, GARP leads with 17.57% vs 9.15% for VFQY. On fees, VFQY is cheaper at 0.13% per year. On volatility, VFQY has been the lower-risk option at 3.12%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, GARP has performed better with a 17.57% return vs 9.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VFQY is cheaper with a 0.13% expense ratio, compared with 0.15% for GARP.
VFQY has the higher dividend yield at 1.03%, compared with 0.27% for GARP.
They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.13% for VFQY and 0.15% for GARP.
VFQY currently has the higher Sharpe Ratio (1.75 vs 1.70), 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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