VFQY vs. IMCB

Last updated Jun 24, 2026

VFQY (Vanguard U.S. Quality Factor ETF) and IMCB (iShares Morningstar Mid-Cap ETF) are both Mid Cap Blend Equities funds. VFQY is actively managed, while IMCB is passively managed. Over the past 5 years, VFQY returned 8.39%/yr vs 8.92%/yr for IMCB. Their correlation of 0.94 suggests significant overlap in exposure. VFQY charges 0.13%/yr vs 0.04%/yr for IMCB.

Performance

VFQY vs. IMCB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard U.S. Quality Factor ETF (VFQY) and iShares Morningstar Mid-Cap ETF (IMCB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFQY achieves a 8.55% return, which is significantly lower than IMCB's 15.58% return.

VFQY

• 1D: -0.88%
• 1M: 1.91%
• YTD: 8.55%
• 6M: 6.89%
• 1Y: 19.65%
• 3Y*: 16.09%
• 5Y*: 8.39%
• 10Y*: —

IMCB

• 1D: -0.52%
• 1M: 3.49%
• YTD: 15.58%
• 6M: 14.26%
• 1Y: 23.55%
• 3Y*: 17.69%
• 5Y*: 8.92%
• 10Y*: 11.71%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VFQY vs. IMCB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VFQY Vanguard U.S. Quality Factor ETF	8.55%	10.24%	12.93%	22.48%	-15.74%	27.96%	16.97%	25.75%	-8.19%
IMCB iShares Morningstar Mid-Cap ETF	15.58%	10.25%	15.10%	16.37%	-16.09%	22.81%	13.35%	31.49%	-10.76%

Correlation

The correlation between VFQY and IMCB is 0.88, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (All Time) Calculated using the full available price history since Feb 15, 2018	0.94

The correlation between VFQY and IMCB has been stable across timeframes, ranging from 0.88 to 0.95 - a consistent structural relationship.

VFQY vs. IMCB - Sectors Allocation Comparison

Sectors	VFQY	IMCB
Technology	25.8%	22.6%
Financial Services	18.9%	11.9%
Industrials	16.8%	18.5%
Consumer Cyclical	13.3%	9.1%
Consumer Defensive	9.2%	5.1%
Healthcare	8.9%	7.9%
Communication Services	2.8%	2.5%
Basic Materials	2.2%	5.3%
Energy	2.2%	6.7%
Real Estate	-	4.3%
Utilities	-	6.0%

Return for Risk

VFQY vs. IMCB — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VFQY

VFQY Risk / Return Rank: 44
VFQY Sharpe Ratio Rank: 43
VFQY Sortino Ratio Rank: 44
VFQY Omega Ratio Rank: 40
VFQY Calmar Ratio Rank: 45
VFQY Martin Ratio Rank: 49

IMCB

IMCB Risk / Return Rank: 58
IMCB Sharpe Ratio Rank: 55
IMCB Sortino Ratio Rank: 56
IMCB Omega Ratio Rank: 52
IMCB Calmar Ratio Rank: 63
IMCB Martin Ratio Rank: 66

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.

VFQY vs. IMCB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Quality Factor ETF (VFQY) and iShares Morningstar Mid-Cap ETF (IMCB). 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	IMCB	Difference
Sharpe ratio: Return per unit of total volatility	1.46	1.78	-0.32
Sortino ratio: Return per unit of downside risk	2.12	2.51	-0.39
Omega ratio: Gain probability vs. loss probability	1.25	1.31	-0.06
Calmar ratio: Return relative to maximum drawdown	2.16	2.94	-0.77
Martin ratio: Return relative to average drawdown	8.04	11.50	-3.47

VFQY vs. IMCB - Sharpe Ratio Comparison

The current VFQY Sharpe Ratio is 1.46, which is comparable to the IMCB Sharpe Ratio of 1.78. The chart below compares the historical Sharpe Ratios of VFQY and IMCB, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VFQY vs. IMCB - Drawdown Comparison

The maximum VFQY drawdown since its inception was -37.41%, smaller than the maximum IMCB drawdown of -58.80%. Use the drawdown chart below to compare losses from any high point for VFQY and IMCB.

Drawdown Indicators

	VFQY	IMCB	Difference
Max Drawdown Largest peak-to-trough decline	-37.41%	-58.80%	+21.39%
Max Drawdown (1Y) Largest decline over 1 year	-9.12%	-8.05%	-1.07%
Max Drawdown (3Y) Largest decline over 3 years	-20.67%	-19.80%	-0.87%
Max Drawdown (5Y) Largest decline over 5 years	-25.93%	-25.15%	-0.78%
Max Drawdown (10Y) Largest decline over 10 years	—	-40.99%	—
Current Drawdown Current decline from peak	-1.29%	-0.84%	-0.45%
Average Drawdown Average peak-to-trough decline	-6.65%	-7.72%	+1.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.45%	2.05%	+0.40%

Volatility

VFQY vs. IMCB - Volatility Comparison

The current volatility for Vanguard U.S. Quality Factor ETF (VFQY) is 3.79%, while iShares Morningstar Mid-Cap ETF (IMCB) has a volatility of 4.75%. This indicates that VFQY experiences smaller price fluctuations and is considered to be less risky than IMCB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFQY	IMCB	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.79%	4.75%	-0.96%
Volatility (6M) Calculated over the trailing 6-month period	9.84%	10.27%	-0.43%
Volatility (1Y) Calculated over the trailing 1-year period	13.61%	13.31%	+0.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.36%	17.64%	+0.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.84%	19.66%	+1.18%

VFQY vs. IMCB - Expense Ratio Comparison

VFQY has a 0.13% expense ratio, which is higher than IMCB's 0.04% 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

VFQY vs. IMCB - Dividend Comparison

VFQY's dividend yield for the trailing twelve months is around 0.82%, less than IMCB's 1.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IMCB iShares Morningstar Mid-Cap ETF	1.24%	1.42%	1.43%	1.55%	1.70%	1.08%	1.12%	1.32%	1.80%	1.31%	1.79%	1.47%
VFQY Vanguard U.S. Quality Factor ETF	0.82%	1.17%	1.34%	1.38%	1.43%	0.98%	1.22%	1.34%	1.31%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VFQY and IMCB in my portfolio?

VFQY and IMCB have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFQY or IMCB?

IMCB has higher volatility (4.75%) compared to VFQY (3.79%). In terms of maximum drawdown, VFQY dropped -37.41% vs IMCB's -58.80%.

Which ETF is better, VFQY or IMCB?

On 5-year performance, IMCB leads with 8.92% vs 8.39% for VFQY. On fees, IMCB is cheaper at 0.04% per year. On volatility, VFQY has been the lower-risk option at 3.79%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFQY or IMCB?

Over the 5-year period, IMCB has performed better with a 8.92% return vs 8.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFQY or IMCB?

IMCB is cheaper with a 0.04% expense ratio, compared with 0.13% for VFQY.

Which ETF pays a higher dividend yield, VFQY or IMCB?

IMCB has the higher dividend yield at 1.24%, compared with 0.82% for VFQY.

What is the main difference between VFQY and IMCB?

They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.13% for VFQY and 0.04% for IMCB.

Which has better risk-adjusted returns?

IMCB currently has the higher Sharpe Ratio (1.78 vs 1.46), 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.