VFQY vs. OPTZ

Last updated Jun 6, 2026

VFQY (Vanguard U.S. Quality Factor ETF) and OPTZ (Optimize Strategy Index ETF) are both Mid Cap Blend Equities funds. VFQY is actively managed, while OPTZ is passively managed. Over the past year, VFQY returned 18.37% vs 53.21% for OPTZ. Their correlation of 0.86 suggests significant overlap in exposure. VFQY charges 0.13%/yr vs 0.25%/yr for OPTZ.

Performance

VFQY vs. OPTZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard U.S. Quality Factor ETF (VFQY) and Optimize Strategy Index ETF (OPTZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFQY achieves a 6.76% return, which is significantly lower than OPTZ's 24.33% return.

VFQY

• 1D: -1.64%
• 1M: 1.24%
• YTD: 6.76%
• 6M: 6.59%
• 1Y: 18.37%
• 3Y*: 15.55%
• 5Y*: 8.18%
• 10Y*: —

OPTZ

• 1D: -5.23%
• 1M: 2.49%
• YTD: 24.33%
• 6M: 24.28%
• 1Y: 53.21%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VFQY vs. OPTZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VFQY Vanguard U.S. Quality Factor ETF	6.76%	10.24%	8.86%
OPTZ Optimize Strategy Index ETF	24.33%	22.83%	16.81%

Correlation

The correlation between VFQY and OPTZ is 0.80, 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	0.80
Correlation (All Time) Calculated using the full available price history since Apr 24, 2024	0.87

The correlation between VFQY and OPTZ has been stable across timeframes, ranging from 0.80 to 0.86 - a consistent structural relationship.

VFQY vs. OPTZ - Sectors Allocation Comparison

Sectors	VFQY	OPTZ
Technology	25.8%	50.6%
Financial Services	18.9%	9.1%
Industrials	16.8%	8.9%
Consumer Cyclical	13.3%	9.5%
Consumer Defensive	9.2%	4.0%
Healthcare	8.9%	10.5%
Communication Services	2.8%	2.6%
Basic Materials	2.2%	1.3%
Energy	2.2%	1.5%
Real Estate	-	1.5%
Utilities	-	0.7%

Return for Risk

VFQY vs. OPTZ — Risk / Return Rank

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

VFQY

VFQY Risk / Return Rank: 41
VFQY Sharpe Ratio Rank: 39
VFQY Sortino Ratio Rank: 40
VFQY Omega Ratio Rank: 37
VFQY Calmar Ratio Rank: 43
VFQY Martin Ratio Rank: 47

OPTZ

OPTZ Risk / Return Rank: 88
OPTZ Sharpe Ratio Rank: 89
OPTZ Sortino Ratio Rank: 85
OPTZ Omega Ratio Rank: 84
OPTZ Calmar Ratio Rank: 89
OPTZ Martin Ratio Rank: 93

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. OPTZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Quality Factor ETF (VFQY) and Optimize Strategy Index ETF (OPTZ). 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.

	VFQY	OPTZ	Difference
Sharpe ratio: Return per unit of total volatility	1.36	2.84	-1.48
Sortino ratio: Return per unit of downside risk	1.99	3.65	-1.66
Omega ratio: Gain probability vs. loss probability	1.23	1.48	-0.25
Calmar ratio: Return relative to maximum drawdown	2.02	5.03	-3.01
Martin ratio: Return relative to average drawdown	7.48	22.63	-15.15
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VFQY vs. OPTZ - Sharpe Ratio Comparison

The current VFQY Sharpe Ratio is 1.36, which is lower than the OPTZ Sharpe Ratio of 2.84. The chart below compares the historical Sharpe Ratios of VFQY and OPTZ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VFQY	OPTZ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.36	2.84	-1.48
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.45	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.53	1.51	-0.98

Drawdowns

VFQY vs. OPTZ - Drawdown Comparison

The maximum VFQY drawdown since its inception was -37.41%, which is greater than OPTZ's maximum drawdown of -25.75%. Use the drawdown chart below to compare losses from any high point for VFQY and OPTZ.

Drawdown Indicators

	VFQY	OPTZ	Difference
Max Drawdown Largest peak-to-trough decline	-37.41%	-25.75%	-11.66%
Max Drawdown (1Y) Largest decline over 1 year	-9.12%	-10.63%	+1.51%
Max Drawdown (3Y) Largest decline over 3 years	-20.67%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-25.93%	—	—
Current Drawdown Current decline from peak	-1.64%	-5.46%	+3.82%
Average Drawdown Average peak-to-trough decline	-6.68%	-3.39%	-3.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.46%	2.36%	+0.10%

Volatility

VFQY vs. OPTZ - Volatility Comparison

The current volatility for Vanguard U.S. Quality Factor ETF (VFQY) is 3.14%, while Optimize Strategy Index ETF (OPTZ) has a volatility of 8.20%. This indicates that VFQY experiences smaller price fluctuations and is considered to be less risky than OPTZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFQY	OPTZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.14%	8.20%	-5.06%
Volatility (6M) Calculated over the trailing 6-month period	9.62%	14.62%	-5.00%
Volatility (1Y) Calculated over the trailing 1-year period	13.59%	18.85%	-5.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.34%	20.95%	-2.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.87%	20.95%	-0.08%

VFQY vs. OPTZ - Expense Ratio Comparison

VFQY has a 0.13% expense ratio, which is lower than OPTZ's 0.25% 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. OPTZ - Dividend Comparison

VFQY's dividend yield for the trailing twelve months is around 1.10%, more than OPTZ's 0.47% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
OPTZ Optimize Strategy Index ETF	0.47%	0.58%	0.32%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VFQY Vanguard U.S. Quality Factor ETF	1.10%	1.17%	1.34%	1.38%	1.43%	0.98%	1.22%	1.34%	1.31%

Frequently Asked Questions

Can I hold both VFQY and OPTZ in my portfolio?

VFQY and OPTZ have a correlation of 0.80, 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 OPTZ?

OPTZ has higher volatility (8.20%) compared to VFQY (3.14%). In terms of maximum drawdown, VFQY dropped -37.41% vs OPTZ's -25.75%.

Which ETF is better, VFQY or OPTZ?

On 1-year performance, OPTZ leads with 53.21% vs 18.37% for VFQY. On fees, VFQY is cheaper at 0.13% per year. On volatility, VFQY has been the lower-risk option at 3.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFQY or OPTZ?

Over the 1-year period, OPTZ has performed better with a 53.21% return vs 18.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFQY or OPTZ?

VFQY is cheaper with a 0.13% expense ratio, compared with 0.25% for OPTZ.

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

VFQY has the higher dividend yield at 1.10%, compared with 0.47% for OPTZ.

What is the main difference between VFQY and OPTZ?

They also come from different issuers: Vanguard and Optimize. Their fees differ too: 0.13% for VFQY and 0.25% for OPTZ.

Which has better risk-adjusted returns?

OPTZ currently has the higher Sharpe Ratio (2.84 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.