VFQY vs. PSET

Last updated Aug 4, 2026

VFQY (Vanguard U.S. Quality Factor ETF) and PSET (Principal Quality ETF) are both Quality Factor funds. VFQY is actively managed, while PSET is passively managed. Over the past 5 years, VFQY returned 9.15%/yr vs 8.37%/yr for PSET. Their 0.73 correlation means they have sometimes moved together and sometimes differently. VFQY charges 0.13%/yr vs 0.15%/yr for PSET.

Performance

VFQY vs. PSET - Performance Comparison

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

Returns By Period

In the year-to-date period, VFQY achieves a 14.20% return, which is significantly higher than PSET's 4.64% 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%

PSET

• 1D: 1.49%
• 1M: 4.13%
• 6M: 4.98%
• YTD: 4.64%
• 1Y: 8.97%
• 3Y*: 12.66%
• 5Y*: 8.37%
• 10Y*: 12.87%
• ALL TIME*: 13.07%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
PSET Principal Quality ETF	$120.42K	$93.26K	$181.37K
VFQY Vanguard U.S. Quality Factor ETF	$948.51K	$988.82K	$1.06M

VFQY vs. PSET - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VFQY Vanguard U.S. Quality Factor ETF	14.20%	10.24%	12.93%	22.48%	-15.74%	27.96%	16.97%	25.75%	-8.19%
PSET Principal Quality ETF	4.64%	7.27%	17.65%	24.07%	-16.52%	29.59%	16.20%	34.85%	-2.35%

Correlation

The correlation between VFQY and PSET is 0.87, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.87
Correlation (3Y) Balances recent behavior with more history.	0.86
Correlation (5Y) Shows whether the relationship held over a longer period.	0.86
Correlation (All Time) Calculated using the full available price history since Feb 15, 2018	0.73

The correlation between VFQY and PSET shifts across timeframes, from 0.73 (all time) to 0.87 (1 year), reflecting how their relationship changes across market environments.

VFQY vs. PSET - Sectors Allocation Comparison

Sectors	VFQY	PSET
Technology	25.8%	37.4%
Financial Services	18.9%	13.9%
Industrials	16.8%	20.5%
Consumer Cyclical	13.3%	5.0%
Consumer Defensive	9.2%	1.1%
Healthcare	8.9%	10.9%
Communication Services	2.8%	6.2%
Basic Materials	2.2%	3.7%
Energy	2.2%	1.2%
Real Estate	-	-
Utilities	-	-

Return for Risk

VFQY vs. PSET — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VFQY

VFQY Risk / Return Rank: 74
VFQY Sharpe Ratio Rank: 75
VFQY Sortino Ratio Rank: 76
VFQY Omega Ratio Rank: 70
VFQY Calmar Ratio Rank: 71
VFQY Martin Ratio Rank: 75

PSET

PSET Risk / Return Rank: 27
PSET Sharpe Ratio Rank: 29
PSET Sortino Ratio Rank: 27
PSET Omega Ratio Rank: 26
PSET Calmar Ratio Rank: 23
PSET Martin Ratio Rank: 27

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VFQY vs. PSET - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Quality Factor ETF (VFQY) and Principal Quality ETF (PSET). 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	PSET	Difference
Sharpe ratio: Return per unit of total volatility	1.75	0.69	+1.06
Sortino ratio: Return per unit of downside risk	2.53	1.04	+1.49
Omega ratio: Gain probability vs. loss probability	1.30	1.12	+0.18
Calmar ratio: Return relative to maximum drawdown	2.57	0.70	+1.87
Martin ratio: Return relative to average drawdown	9.69	2.28	+7.41

VFQY vs. PSET - Sharpe Ratio Comparison

The current VFQY Sharpe Ratio is 1.75, which is higher than the PSET Sharpe Ratio of 0.69. The chart below compares the historical Sharpe Ratios of VFQY and PSET, 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. PSET - Drawdown Comparison

The maximum VFQY drawdown since its inception was -37.41%, which is greater than PSET's maximum drawdown of -34.74%. Use the drawdown chart below to compare losses from any high point for VFQY and PSET.

Drawdown Indicators

	VFQY	PSET	Difference
Max Drawdown Largest peak-to-trough decline	-37.41%	-34.74%	-2.67%
Max Drawdown (1Y) Largest decline over 1 year	-9.12%	-12.94%	+3.82%
Max Drawdown (3Y) Largest decline over 3 years	-20.67%	-21.96%	+1.29%
Max Drawdown (5Y) Largest decline over 5 years	-25.93%	-25.61%	-0.32%
Max Drawdown (10Y) Largest decline over 10 years	—	-34.74%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-6.57%	-4.55%	-2.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.41%	3.95%	-1.54%

Volatility

VFQY vs. PSET - Volatility Comparison

The current volatility for Vanguard U.S. Quality Factor ETF (VFQY) is 3.12%, while Principal Quality ETF (PSET) has a volatility of 3.46%. This indicates that VFQY experiences smaller price fluctuations and is considered to be less risky than PSET based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFQY	PSET	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.12%	3.46%	-0.34%
Volatility (6M) Calculated over the trailing 6-month period	9.58%	10.21%	-0.63%
Volatility (1Y) Calculated over the trailing 1-year period	13.37%	13.05%	+0.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.29%	17.61%	+0.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.73%	18.12%	+2.61%

VFQY vs. PSET - Expense Ratio Comparison

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

VFQY's dividend yield for the trailing twelve months is around 1.03%, more than PSET's 0.68% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
PSET Principal Quality ETF	0.68%	0.59%	0.69%	0.85%	1.47%	0.89%	1.09%	1.52%	1.33%	1.02%	1.26%
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%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VFQY and PSET in my portfolio?

VFQY and PSET have a correlation of 0.87, 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 PSET?

PSET has higher volatility (3.46%) compared to VFQY (3.12%). In terms of maximum drawdown, VFQY dropped -37.41% vs PSET's -34.74%.

Which ETF is better, VFQY or PSET?

On 5-year performance, VFQY leads with 9.15% vs 8.37% for PSET. 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.

Which ETF has performed better, VFQY or PSET?

Over the 5-year period, VFQY has performed better with a 9.15% return vs 8.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFQY or PSET?

VFQY is cheaper with a 0.13% expense ratio, compared with 0.15% for PSET.

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

VFQY has the higher dividend yield at 1.03%, compared with 0.68% for PSET.

What is the main difference between VFQY and PSET?

They also come from different issuers: Vanguard and Principal. Their fees differ too: 0.13% for VFQY and 0.15% for PSET.

Which has better risk-adjusted returns?

VFQY currently has the higher Sharpe Ratio (1.75 vs 0.69), 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.