VOTE vs. QUAL

Last updated Jun 5, 2026

VOTE (Engine No. 1 Transform 500 ETF) and QUAL (iShares MSCI USA Quality Factor ETF) are both Large Cap Blend Equities funds - VOTE tracks the Morningstar US Large Cap Index while QUAL tracks the MSCI USA Sector Neutral Quality Index. Both are passively managed. Over the past 3 years, VOTE returned 23.05%/yr vs 20.16%/yr for QUAL. With a 0.96 correlation, they move nearly in lockstep. VOTE charges 0.05%/yr vs 0.15%/yr for QUAL.

Performance

VOTE vs. QUAL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Engine No. 1 Transform 500 ETF (VOTE) and iShares MSCI USA Quality Factor ETF (QUAL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VOTE achieves a 11.51% return, which is significantly higher than QUAL's 9.65% return.

VOTE

• 1D: 0.44%
• 1M: 4.81%
• YTD: 11.51%
• 6M: 11.46%
• 1Y: 28.65%
• 3Y*: 23.05%
• 5Y*: —
• 10Y*: —

QUAL

• 1D: 0.79%
• 1M: 4.74%
• YTD: 9.65%
• 6M: 9.63%
• 1Y: 22.18%
• 3Y*: 20.16%
• 5Y*: 12.13%
• 10Y*: 14.29%

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

VOTE vs. QUAL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
VOTE Engine No. 1 Transform 500 ETF	11.51%	17.95%	25.23%	27.60%	-19.74%	12.08%
QUAL iShares MSCI USA Quality Factor ETF	9.65%	12.65%	22.29%	30.88%	-20.50%	12.50%

Correlation

The correlation between VOTE and QUAL is 0.93, 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	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (All Time) Calculated using the full available price history since Jun 24, 2021	0.96

The correlation between VOTE and QUAL has been stable across timeframes, ranging from 0.93 to 0.96 - a consistent structural relationship.

VOTE vs. QUAL - Sectors Allocation Comparison

Sectors	VOTE	QUAL
Technology	35.5%	36.5%
Financial Services	11.7%	11.5%
Communication Services	11.3%	11.1%
Consumer Cyclical	10.2%	9.3%
Healthcare	8.6%	9.0%
Industrials	8.5%	8.2%
Consumer Defensive	4.8%	4.9%
Energy	3.6%	4.0%
Utilities	2.3%	1.9%
Basic Materials	1.8%	1.7%
Real Estate	1.8%	1.8%

Return for Risk

VOTE vs. QUAL — Risk / Return Rank

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

VOTE

VOTE Risk / Return Rank: 72
VOTE Sharpe Ratio Rank: 75
VOTE Sortino Ratio Rank: 73
VOTE Omega Ratio Rank: 73
VOTE Calmar Ratio Rank: 65
VOTE Martin Ratio Rank: 77

QUAL

QUAL Risk / Return Rank: 56
QUAL Sharpe Ratio Rank: 57
QUAL Sortino Ratio Rank: 57
QUAL Omega Ratio Rank: 55
QUAL Calmar Ratio Rank: 51
QUAL Martin Ratio Rank: 63

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.

VOTE vs. QUAL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Engine No. 1 Transform 500 ETF (VOTE) 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.

	VOTE	QUAL	Difference
Sharpe ratio: Return per unit of total volatility	2.38	1.88	+0.50
Sortino ratio: Return per unit of downside risk	3.25	2.68	+0.57
Omega ratio: Gain probability vs. loss probability	1.43	1.33	+0.10
Calmar ratio: Return relative to maximum drawdown	3.16	2.47	+0.69
Martin ratio: Return relative to average drawdown	14.50	11.25	+3.25
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VOTE vs. QUAL - Sharpe Ratio Comparison

The current VOTE Sharpe Ratio is 2.38, which is comparable to the QUAL Sharpe Ratio of 1.88. The chart below compares the historical Sharpe Ratios of VOTE 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.

Sharpe Ratios by Period

	VOTE	QUAL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.38	1.88	+0.50
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.70	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.79	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.81	0.80	0.00

Drawdowns

VOTE vs. QUAL - Drawdown Comparison

The maximum VOTE drawdown since its inception was -25.71%, smaller than the maximum QUAL drawdown of -34.06%. Use the drawdown chart below to compare losses from any high point for VOTE and QUAL.

Drawdown Indicators

	VOTE	QUAL	Difference
Max Drawdown Largest peak-to-trough decline	-25.71%	-34.06%	+8.35%
Max Drawdown (1Y) Largest decline over 1 year	-9.10%	-9.03%	-0.07%
Max Drawdown (3Y) Largest decline over 3 years	-19.08%	-18.00%	-1.08%
Max Drawdown (5Y) Largest decline over 5 years	—	-28.23%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-34.06%	—
Current Drawdown Current decline from peak	-0.27%	0.00%	-0.27%
Average Drawdown Average peak-to-trough decline	-6.14%	-4.10%	-2.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.98%	1.98%	0.00%

Volatility

VOTE vs. QUAL - Volatility Comparison

Engine No. 1 Transform 500 ETF (VOTE) has a higher volatility of 2.91% compared to iShares MSCI USA Quality Factor ETF (QUAL) at 2.54%. This indicates that VOTE's price experiences larger fluctuations and is considered to be riskier than QUAL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VOTE	QUAL	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.91%	2.54%	+0.37%
Volatility (6M) Calculated over the trailing 6-month period	9.20%	9.06%	+0.14%
Volatility (1Y) Calculated over the trailing 1-year period	12.08%	11.84%	+0.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.14%	17.33%	-0.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.14%	18.09%	-0.95%

VOTE vs. QUAL - Expense Ratio Comparison

VOTE has a 0.05% 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

VOTE vs. QUAL - Dividend Comparison

VOTE's dividend yield for the trailing twelve months is around 0.89%, more than QUAL's 0.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VOTE Engine No. 1 Transform 500 ETF	0.89%	1.03%	1.18%	1.33%	1.54%	0.54%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VOTE and QUAL in my portfolio?

With a correlation of 0.93, VOTE and QUAL move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VOTE or QUAL?

VOTE has higher volatility (2.91%) compared to QUAL (2.54%). In terms of maximum drawdown, VOTE dropped -25.71% vs QUAL's -34.06%.

Which ETF is better, VOTE or QUAL?

On 3-year performance, VOTE leads with 23.05% vs 20.16% for QUAL. On fees, VOTE is cheaper at 0.05% per year. On volatility, QUAL has been the lower-risk option at 2.54%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VOTE or QUAL?

Over the 3-year period, VOTE has performed better with a 23.05% return vs 20.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VOTE or QUAL?

VOTE is cheaper with a 0.05% expense ratio, compared with 0.15% for QUAL.

Which ETF pays a higher dividend yield, VOTE or QUAL?

VOTE has the higher dividend yield at 0.89%, compared with 0.87% for QUAL.

What is the main difference between VOTE and QUAL?

VOTE tracks Morningstar US Large Cap Index, while QUAL tracks MSCI USA Sector Neutral Quality Index. They also come from different issuers: Engine No. 1 LLC and iShares. Their fees differ too: 0.05% for VOTE and 0.15% for QUAL.

Which has better risk-adjusted returns?

VOTE currently has the higher Sharpe Ratio (2.38 vs 1.88), 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.