VFQY vs. XDQQ

Last updated Jun 6, 2026

VFQY (Vanguard U.S. Quality Factor ETF) and XDQQ (Innovator Growth Accelerated ETF - Quarterly) are both exchange-traded funds - VFQY is a Mid Cap Blend Equities fund actively managed by Vanguard, while XDQQ is a Leveraged Equities fund actively managed by Innovator. Both are actively managed. Over the past 5 years, VFQY returned 8.18%/yr vs 8.26%/yr for XDQQ. A 0.75 correlation means they provide meaningful diversification when combined. VFQY charges 0.13%/yr vs 0.79%/yr for XDQQ.

Performance

VFQY vs. XDQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard U.S. Quality Factor ETF (VFQY) and Innovator Growth Accelerated ETF - Quarterly (XDQQ). 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 higher than XDQQ's 2.29% return.

VFQY

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

XDQQ

• 1D: -0.32%
• 1M: 0.65%
• YTD: 2.29%
• 6M: 1.92%
• 1Y: 17.12%
• 3Y*: 17.72%
• 5Y*: 8.26%
• 10Y*: —

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

VFQY vs. XDQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
VFQY Vanguard U.S. Quality Factor ETF	6.76%	10.24%	12.93%	22.48%	-15.74%	12.31%
XDQQ Innovator Growth Accelerated ETF - Quarterly	2.29%	13.75%	31.47%	30.15%	-33.74%	18.29%

Correlation

The correlation between VFQY and XDQQ is 0.60, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.60
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.75
Correlation (All Time) Calculated using the full available price history since Apr 5, 2021	0.75

The correlation between VFQY and XDQQ shifts across timeframes, from 0.60 (1 year) to 0.75 (all time), reflecting how their relationship changes across market environments.

VFQY vs. XDQQ - Sectors Allocation Comparison

Sectors	VFQY	XDQQ
Technology	25.8%	50.7%
Financial Services	18.9%	0.2%
Industrials	16.8%	3.3%
Consumer Cyclical	13.3%	12.5%
Consumer Defensive	9.2%	8.7%
Healthcare	8.9%	5.1%
Communication Services	2.8%	15.8%
Basic Materials	2.2%	1.3%
Energy	2.2%	0.7%
Real Estate	-	0.1%
Utilities	-	1.6%

Return for Risk

VFQY vs. XDQQ — 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

XDQQ

XDQQ Risk / Return Rank: 37
XDQQ Sharpe Ratio Rank: 37
XDQQ Sortino Ratio Rank: 34
XDQQ Omega Ratio Rank: 41
XDQQ Calmar Ratio Rank: 31
XDQQ Martin Ratio Rank: 43

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. XDQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Quality Factor ETF (VFQY) and Innovator Growth Accelerated ETF - Quarterly (XDQQ). 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	XDQQ	Difference
Sharpe ratio: Return per unit of total volatility	1.36	1.25	+0.11
Sortino ratio: Return per unit of downside risk	1.99	1.71	+0.28
Omega ratio: Gain probability vs. loss probability	1.23	1.26	-0.02
Calmar ratio: Return relative to maximum drawdown	2.02	1.45	+0.57
Martin ratio: Return relative to average drawdown	7.48	6.60	+0.88
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. XDQQ - Sharpe Ratio Comparison

The current VFQY Sharpe Ratio is 1.36, which is comparable to the XDQQ Sharpe Ratio of 1.25. The chart below compares the historical Sharpe Ratios of VFQY and XDQQ, 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	XDQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.36	1.25	+0.11
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.45	0.42	+0.03
Sharpe Ratio (All Time) Calculated using the full available price history	0.53	0.46	+0.07

Drawdowns

VFQY vs. XDQQ - Drawdown Comparison

The maximum VFQY drawdown since its inception was -37.41%, roughly equal to the maximum XDQQ drawdown of -35.63%. Use the drawdown chart below to compare losses from any high point for VFQY and XDQQ.

Drawdown Indicators

	VFQY	XDQQ	Difference
Max Drawdown Largest peak-to-trough decline	-37.41%	-35.63%	-1.78%
Max Drawdown (1Y) Largest decline over 1 year	-9.12%	-11.84%	+2.72%
Max Drawdown (3Y) Largest decline over 3 years	-20.67%	-23.17%	+2.50%
Max Drawdown (5Y) Largest decline over 5 years	-25.93%	-35.63%	+9.70%
Current Drawdown Current decline from peak	-1.64%	-0.33%	-1.31%
Average Drawdown Average peak-to-trough decline	-6.68%	-10.82%	+4.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.46%	2.60%	-0.14%

Volatility

VFQY vs. XDQQ - Volatility Comparison

Vanguard U.S. Quality Factor ETF (VFQY) has a higher volatility of 3.14% compared to Innovator Growth Accelerated ETF - Quarterly (XDQQ) at 0.49%. This indicates that VFQY's price experiences larger fluctuations and is considered to be riskier than XDQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFQY	XDQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.14%	0.49%	+2.65%
Volatility (6M) Calculated over the trailing 6-month period	9.62%	11.10%	-1.48%
Volatility (1Y) Calculated over the trailing 1-year period	13.59%	13.81%	-0.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.34%	19.79%	-1.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.87%	19.64%	+1.23%

VFQY vs. XDQQ - Expense Ratio Comparison

VFQY has a 0.13% expense ratio, which is lower than XDQQ's 0.79% expense ratio.

Dividends

VFQY vs. XDQQ - Dividend Comparison

VFQY's dividend yield for the trailing twelve months is around 1.10%, while XDQQ has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
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%
XDQQ Innovator Growth Accelerated ETF - Quarterly	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VFQY and XDQQ in my portfolio?

VFQY and XDQQ have a correlation of 0.60, 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 XDQQ?

VFQY has higher volatility (3.14%) compared to XDQQ (0.49%). In terms of maximum drawdown, VFQY dropped -37.41% vs XDQQ's -35.63%.

Which ETF is better, VFQY or XDQQ?

On 5-year performance, XDQQ leads with 8.26% vs 8.18% for VFQY. On fees, VFQY is cheaper at 0.13% per year. On volatility, XDQQ has been the lower-risk option at 0.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFQY or XDQQ?

Over the 5-year period, XDQQ has performed better with a 8.26% return vs 8.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFQY or XDQQ?

VFQY is cheaper with a 0.13% expense ratio, compared with 0.79% for XDQQ.

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

VFQY has the higher dividend yield at 1.10%, compared with 0.00% for XDQQ.

What is the main difference between VFQY and XDQQ?

VFQY is categorized as Mid Cap Blend Equities, while XDQQ is Leveraged Equities. They also come from different issuers: Vanguard and Innovator. Their fees differ too: 0.13% for VFQY and 0.79% for XDQQ.

Which has better risk-adjusted returns?

VFQY currently has the higher Sharpe Ratio (1.36 vs 1.25), 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.