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VFQY vs. QUAL
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VFQY vs. QUAL

Last updated Jun 13, 2026

VFQY (Vanguard U.S. Quality Factor ETF) and QUAL (iShares MSCI USA Quality Factor ETF) are both exchange-traded funds - VFQY is a Mid Cap Blend Equities fund actively managed by Vanguard, while QUAL is a Large Cap Blend Equities fund tracking the MSCI USA Sector Neutral Quality Index. VFQY is actively managed, while QUAL is passively managed. Over the past 5 years, VFQY returned 8.52%/yr vs 11.97%/yr for QUAL. Their correlation of 0.87 suggests significant overlap in exposure. VFQY charges 0.13%/yr vs 0.15%/yr for QUAL.

Performance

VFQY vs. QUAL - Performance Comparison

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

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Returns By Period

The year-to-date returns for both stocks are quite close, with VFQY having a 9.45% return and QUAL slightly lower at 9.44%.

VFQY

1D
0.67%
1M
4.80%
YTD
9.45%
6M
7.77%
1Y
22.21%
3Y*
15.68%
5Y*
8.52%
10Y*
—

QUAL

1D
0.47%
1M
2.14%
YTD
9.44%
6M
9.29%
1Y
22.87%
3Y*
19.30%
5Y*
11.97%
10Y*
14.46%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VFQY vs. QUAL - Yearly Performance Comparison

2026 (YTD)20252024202320222021202020192018
VFQY
Vanguard U.S. Quality Factor ETF		9.45%10.24%12.93%22.48%-15.74%27.96%16.97%25.75%-8.19%
QUAL
iShares MSCI USA Quality Factor ETF		9.44%12.65%22.29%30.88%-20.50%26.94%17.04%33.89%-6.36%

Correlation

The correlation between VFQY and QUAL is 0.87, 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

0.87

Correlation (3Y)
Calculated over the trailing 3-year period

0.85

Correlation (5Y)
Calculated over the trailing 5-year period

0.89

Correlation (All Time)
Calculated using the full available price history since Feb 15, 2018

0.87

The correlation between VFQY and QUAL has been stable across timeframes, ranging from 0.85 to 0.89 - a consistent structural relationship.

VFQY vs. QUAL - Sectors Allocation Comparison

Sectors
VFQY
QUAL

Technology

25.8%
36.5%

Financial Services

18.9%
11.5%

Industrials

16.8%
8.2%

Consumer Cyclical

13.3%
9.3%

Consumer Defensive

9.2%
4.9%

Healthcare

8.9%
9.0%

Communication Services

2.8%
11.1%

Basic Materials

2.2%
1.7%

Energy

2.2%
4.0%

Real Estate

-

1.8%

Utilities

-

1.9%

Technology

VFQY
25.8%
QUAL
36.5%

Financial Services

VFQY
18.9%
QUAL
11.5%

Industrials

VFQY
16.8%
QUAL
8.2%

Consumer Cyclical

VFQY
13.3%
QUAL
9.3%

Consumer Defensive

VFQY
9.2%
QUAL
4.9%

Healthcare

VFQY
8.9%
QUAL
9.0%

Communication Services

VFQY
2.8%
QUAL
11.1%

Basic Materials

VFQY
2.2%
QUAL
1.7%

Energy

VFQY
2.2%
QUAL
4.0%

Real Estate

VFQY

-

QUAL
1.8%

Utilities

VFQY

-

QUAL
1.9%

Compare stocks, funds, or ETFs

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Vanguard U.S. Quality Factor ETF

iShares MSCI USA Quality Factor ETF

Often compared with VFQY:
VFQY vs. JQUAVFQY vs. VYMVFQY vs. VFMFVFQY vs. VFVAVFQY vs. LVHIVFQY vs. VIGVFQY vs. VFMO
Often compared with QUAL:
QUAL vs. SPHQQUAL vs. SPYQUAL vs. MTUMQUAL vs. USMVQUAL vs. VOOQUAL vs. IVVQUAL vs. SCHD

Return for Risk

VFQY vs. QUAL — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VFQY
VFQY Risk / Return Rank: 4949
Overall Rank
VFQY Sharpe Ratio Rank: 4949
Sharpe Ratio Rank
VFQY Sortino Ratio Rank: 4949
Sortino Ratio Rank
VFQY Omega Ratio Rank: 4444
Omega Ratio Rank
VFQY Calmar Ratio Rank: 5050
Calmar Ratio Rank
VFQY Martin Ratio Rank: 5454
Martin Ratio Rank
QUAL
QUAL Risk / Return Rank: 5959
Overall Rank
QUAL Sharpe Ratio Rank: 5959
Sharpe Ratio Rank
QUAL Sortino Ratio Rank: 6060
Sortino Ratio Rank
QUAL Omega Ratio Rank: 5656
Omega Ratio Rank
QUAL Calmar Ratio Rank: 5353
Calmar Ratio Rank
QUAL Martin Ratio Rank: 6767
Martin Ratio Rank
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. QUAL - 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 Factor ETF (QUAL). 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.

VFQYQUALDifference
Sharpe ratioReturn per unit of total volatility
1.47
1.74

-0.27

Sortino ratioReturn per unit of downside risk
2.13
2.46

-0.33

Omega ratioGain probability vs. loss probability

1.25

1.31

-0.06

Calmar ratioReturn relative to maximum drawdown

2.20

2.32

-0.12

Martin ratioReturn relative to average drawdown

8.17

10.60

-2.43

VFQY vs. QUAL - Sharpe Ratio Comparison

The current VFQY Sharpe Ratio is 1.47, which is comparable to the QUAL Sharpe Ratio of 1.74. The chart below compares the historical Sharpe Ratios of VFQY and QUAL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

VFQY vs. QUAL - Drawdown Comparison

The maximum VFQY drawdown since its inception was -37.41%, which is greater than QUAL's maximum drawdown of -34.06%. Use the drawdown chart below to compare losses from any high point for VFQY and QUAL.

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Drawdown Indicators

VFQYQUALDifference

Max Drawdown

Largest peak-to-trough decline

-37.41%

-34.06%

-3.35%

Max Drawdown (1Y)

Largest decline over 1 year

-9.12%

-9.03%

-0.09%

Max Drawdown (3Y)

Largest decline over 3 years

-20.67%

-18.00%

-2.67%

Max Drawdown (5Y)

Largest decline over 5 years

-25.93%

-28.23%

+2.30%

Max Drawdown (10Y)

Largest decline over 10 years

—

-34.06%

—

Current Drawdown

Current decline from peak

0.00%

-0.19%

+0.19%

Average Drawdown

Average peak-to-trough decline

-6.67%

-4.10%

-2.57%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.46%

1.99%

+0.47%

Volatility

VFQY vs. QUAL - Volatility Comparison

Vanguard U.S. Quality Factor ETF (VFQY) and iShares MSCI USA Quality Factor ETF (QUAL) have volatilities of 3.50% and 3.63%, 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.

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Volatility by Period

VFQYQUALDifference

Volatility (1M)

Calculated over the trailing 1-month period

3.50%

3.63%

-0.13%

Volatility (6M)

Calculated over the trailing 6-month period

9.71%

9.43%

+0.28%

Volatility (1Y)

Calculated over the trailing 1-year period

13.69%

12.10%

+1.59%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

18.36%

17.36%

+1.00%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

20.85%

18.11%

+2.74%

VFQY vs. QUAL - Expense Ratio Comparison

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

VFQY's dividend yield for the trailing twelve months is around 1.08%, more than QUAL's 0.87% yield.

PositionTTM20252024202320222021202020192018201720162015
QUAL
iShares MSCI USA Quality Factor ETF		0.87%0.94%1.02%1.23%1.59%1.20%1.39%1.60%2.00%1.76%1.96%1.63%
VFQY
Vanguard U.S. Quality Factor ETF		1.08%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

VFQY and QUAL 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.

QUAL has higher volatility (3.63%) compared to VFQY (3.50%). In terms of maximum drawdown, VFQY dropped -37.41% vs QUAL's -34.06%.

On 5-year performance, QUAL leads with 11.97% vs 8.52% for VFQY. On fees, VFQY is cheaper at 0.13% per year. On volatility, VFQY has been the lower-risk option at 3.50%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 5-year period, QUAL has performed better with a 11.97% return vs 8.52%. 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 QUAL.

VFQY has the higher dividend yield at 1.08%, compared with 0.87% for QUAL.

VFQY is categorized as Mid Cap Blend Equities, while QUAL is Large Cap Blend Equities. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.13% for VFQY and 0.15% for QUAL.

QUAL currently has the higher Sharpe Ratio (1.74 vs 1.47), 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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