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Relative Intelligence · US Quality Equity

How iShares MSCI USA Quality Factor ETF (QUAL) compares with the whole market and its popular alternatives

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on QUAL alone. It places QUAL (iShares MSCI USA Quality Factor ETF) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where QUAL stands in the market, and of the alternatives worth a closer look.

Period covered: QUAL's full trading record, from July 2013 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

Data as of October 20, 2026. Full tables and charts read best on a larger screen.

Rank the market against QUAL →Chart QUAL vs. 20 alternatives →
On this page12 sections

Key findings

How much would $10,000 in QUAL have grown?

This chart tracks a hypothetical $10,000 investment in QUAL over the past 13 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of QUAL over the same span and QUAL's popular alternatives, among those that traded for the entire period. A second view covers the past 5 years, the period the better options further down the page are judged on. It shows not only where each investment ended up but also how smooth or uneven the path was.

Note: QUAL began trading on July 18, 2013, so the chart cannot reach back to the dot-com bust, the 2008 financial crisis or two other sell-offs. It covers the most recent 13 years of QUAL's record, starting at the end of September 2013.

Choose a period

From the end of September 2013 to the end of September 2026. The scale is logarithmic, so equal steps up the chart are equal percentage gains. Hover over a fund in the key to pick out its line. 483 of the 2,311 stocks and funds worth at least $500 million that traded the whole period ended ahead of QUAL; the chart shows 5, closest alternatives first. The other 3 lines are popular alternatives, shown for context.

$10,000$100,000$1M2013201520172019202120232025$10,000$100,000$1M20132016201920222025
  • NVDA$6M+62,911% total · +64.2% a year
  • IWF$72,407+624% total · +16.4% a year
  • MTUM$68,414+584% total · +15.9% a year
  • WM$64,758+548% total · +15.5% a year
  • SPY (S&P 500)$56,474+465% total · +14.2% a year
  • SPHQ$55,320+453% total · +14.1% a year
  • QUAL$53,143+431% total · +13.7% a year
  • DGRW$49,137+391% total · +13.0% a year
  • IWD$38,062+281% total · +10.8% a year
  • USMV$37,289+273% total · +10.7% a year
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From the end of September 2021 to the end of September 2026. Hover over a fund in the key to pick out its line. 1,078 of the 3,628 stocks and funds worth at least $500 million that traded the whole period ended ahead of QUAL; the chart shows 5, closest alternatives first. The other 3 lines are popular alternatives, shown for context.

$5,000$10,000$15,000$20,000$25,000$30,000202120222023202420252026$0$10,000$20,000$30,000202120222023202420252026
  • SPMO$26,579+166% total · +21.6% a year
  • VLUE$22,395+124% total · +17.5% a year
  • DYNF$21,051+111% total · +16.1% a year
  • LRGF$19,819+98.2% total · +14.7% a year
  • JQUA$19,289+92.9% total · +14.0% a year
  • FNDX$19,177+91.8% total · +13.9% a year
  • MTUM$19,134+91.3% total · +13.9% a year
  • SPY (S&P 500)$19,000+90.0% total · +13.7% a year
  • IWF$18,822+88.2% total · +13.5% a year
  • QUAL$17,879+78.8% total · +12.3% a year
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QUAL at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout. These figures serve as the baseline for every comparison that follows.

Note: QUAL began trading on July 18, 2013, so every figure here, including its worst decline, covers only the time since then. None of them reflect the dot-com bust, the 2008 financial crisis or two other sell-offs.

The fund

Issuer
IShares
Began trading
July 2013
Expense ratio
0.15%per year
Assets
$48B
Category
Broad Market

Returns

Past 1 year
+16.4%total return
Past 3 years
+76.9%+20.9% a year
Past 5 years
+71.5%+11.4% a year
Past 10 years
+293%+14.7% a year
Best calendar year
+33.9%2019
Worst calendar year
−20.5%2022
Losing years
2 of 12full calendar years

Risk

Volatility
17.3%typical yearly swing, 5 years
Sharpe ratio
0.71return per unit of risk, 5 years
Worst decline ever
−34.1%Feb 2020 to Mar 2020
From its all-time high
At its highwithin 1%

QUAL against the whole market

Where QUAL ranks among every stock and fund, and what across the market has done better.

How does QUAL rank among all ETFs?

This section ranks QUAL on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history. Where the comparisons with its popular alternatives show how QUAL stacks up against its peers, these rankings show where it stands in the market as a whole.

Ranked against U.S.-listed ETFs with at least $100M in assets that have enough history for each measure, so the count changes from row to row; smaller ETFs and leveraged funds are left out. Lower volatility and smaller declines rank higher.

MeasureQUALRankStanding
1-year return+16.4%676 of 2,485top 27%
3-year return+76.9%636 of 1,949top 33%
5-year return+71.5%364 of 1,560top 23%
10-year return+293%106 of 958top 11%
Volatility, 5 years17.3%882 of 1,560bottom 44%
Sharpe ratio, 5 years0.71503 of 1,560top 32%
Worst decline, past 10 years−34.1%297 of 951top 31%

What has beaten QUAL on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer). QUAL sits where the dashed lines cross. Anything in the green box above and to the left earned more than QUAL with smaller swings, a better trade-off over this period on both counts. Past results are no promise, but a name in the box is worth a closer look.

Annual return is the annualized total return with dividends reinvested, and volatility the annualized swing in daily prices, both over 5 years. Labeled dots are the strongest picks from the table below and the names called out above, colored by how close they sit to QUAL; faint dots are 20 more of the 46 in the green region (the strongest, one per fund family). 3,633 stocks and funds worth at least $500 million were screened. Hover over a dot for its figures.

8.0%10.0%12.0%14.0%16.0%18.0%20.0%22.0%8.0%10.0%12.0%14.0%16.0%18.0%20.0%Volatility over 5 years (annualized)Annual return over 5 yearsMore return, less volatility than QUALDIVB: +13.9% a year, volatility 15.4%PWV: +13.5% a year, volatility 14.2%FDRR: +12.6% a year, volatility 15.0%FYLD: +13.1% a year, volatility 16.0%SIXA: +12.8% a year, volatility 12.7%VSLU: +13.7% a year, volatility 16.2%FNDF: +13.6% a year, volatility 16.3%DBEF: +13.1% a year, volatility 13.8%IDV: +12.8% a year, volatility 15.5%EMLP: +14.9% a year, volatility 14.5%GCOW: +14.1% a year, volatility 13.6%FDL: +13.9% a year, volatility 14.4%FTGC: +12.9% a year, volatility 15.6%HDEF: +12.8% a year, volatility 14.2%FLQL: +13.8% a year, volatility 16.3%AUSF: +13.2% a year, volatility 13.6%DGT: +13.8% a year, volatility 15.1%IDOG: +14.1% a year, volatility 15.6%QDEF: +12.7% a year, volatility 13.7%IGLD: +12.5% a year, volatility 16.1%QUAL: +11.4% a year, volatility 17.3%SPY (S&P 500): +12.7% a year, volatility 17.1%JQUA: +13.6% a year, volatility 15.7%SPMO: +18.7% a year, volatility 20.8%SPY: +12.7% a year, volatility 17.1%DYNF: +14.7% a year, volatility 17.5%FNDX: +13.5% a year, volatility 14.9%VLUE: +15.9% a year, volatility 18.4%HDV: +12.9% a year, volatility 13.0%MGV: +12.6% a year, volatility 13.4%FDVV: +13.2% a year, volatility 14.6%VYM: +11.3% a year, volatility 13.8%RY: +17.3% a year, volatility 18.2%DFIV: +14.8% a year, volatility 16.4%IWX: +12.7% a year, volatility 13.8%KO: +14.7% a year, volatility 16.8%DIVI: +13.4% a year, volatility 15.5%PJUL: +10.5% a year, volatility 8.6%VTI: +11.5% a year, volatility 17.5%WM: +9.3% a year, volatility 19.2%LVHI: +17.0% a year, volatility 11.1%QUALSPY (S&P 500)JQUASPMOSPYDYNFFNDXVLUEHDVFDVVVYMRYDFIVIWXPJULVTIWMLVHI5.0%10.0%15.0%20.0%25.0%8.0%10.0%12.0%14.0%16.0%18.0%20.0%Volatility over 5 years (annualized)Annual return over 5 yearsMore return, less volatility than QUALDIVB: +13.9% a year, volatility 15.4%PWV: +13.5% a year, volatility 14.2%FDRR: +12.6% a year, volatility 15.0%FYLD: +13.1% a year, volatility 16.0%SIXA: +12.8% a year, volatility 12.7%VSLU: +13.7% a year, volatility 16.2%FNDF: +13.6% a year, volatility 16.3%DBEF: +13.1% a year, volatility 13.8%IDV: +12.8% a year, volatility 15.5%EMLP: +14.9% a year, volatility 14.5%GCOW: +14.1% a year, volatility 13.6%FDL: +13.9% a year, volatility 14.4%FTGC: +12.9% a year, volatility 15.6%HDEF: +12.8% a year, volatility 14.2%FLQL: +13.8% a year, volatility 16.3%AUSF: +13.2% a year, volatility 13.6%DGT: +13.8% a year, volatility 15.1%IDOG: +14.1% a year, volatility 15.6%QDEF: +12.7% a year, volatility 13.7%IGLD: +12.5% a year, volatility 16.1%QUAL: +11.4% a year, volatility 17.3%SPY (S&P 500): +12.7% a year, volatility 17.1%JQUA: +13.6% a year, volatility 15.7%SPMO: +18.7% a year, volatility 20.8%SPY: +12.7% a year, volatility 17.1%DYNF: +14.7% a year, volatility 17.5%FNDX: +13.5% a year, volatility 14.9%VLUE: +15.9% a year, volatility 18.4%HDV: +12.9% a year, volatility 13.0%MGV: +12.6% a year, volatility 13.4%FDVV: +13.2% a year, volatility 14.6%VYM: +11.3% a year, volatility 13.8%RY: +17.3% a year, volatility 18.2%DFIV: +14.8% a year, volatility 16.4%IWX: +12.7% a year, volatility 13.8%KO: +14.7% a year, volatility 16.8%DIVI: +13.4% a year, volatility 15.5%PJUL: +10.5% a year, volatility 8.6%VTI: +11.5% a year, volatility 17.5%WM: +9.3% a year, volatility 19.2%LVHI: +17.0% a year, volatility 11.1%QUALSPY (S&P 500)JQUASPMOSPYDYNFFNDXVLUEHDVMGVVYMRYDFIVPJULWMLVHI
  • Popular alternatives
  • Same and neighboring categories, and shared themes
  • The whole market
  • Others in the green region

Is there a better investment than QUAL?

Investments that beat QUAL over the past 5 years on return, volatility, drawdowns, consistency, crash losses or fees, from its popular alternatives out to the whole market.

How this works

The table below lists investments that beat QUAL over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio. It checks QUAL's popular alternatives first, then the rest of its own and neighboring categories, then every stock and fund worth at least $500 million, and shows the strongest few in each group. The full list of those with a higher return and lower volatility than QUAL follows the table.

Annual return is the annualized total return with dividends reinvested. Annual return, volatility and the Sharpe ratio cover 5 years; the worst decline covers the past 10 years. Green marks a better figure than QUAL's. "On the frontier" means no other option shown or tested earned more with less volatility. Funds that hold the same thing are shown once. Beyond the popular alternatives, nothing with more than 1.5× QUAL's volatility counts as better.

These figures cover the past 5 years. Green marks a better figure than QUAL's.

Screen the whole market against QUAL for any period in BetterThanSPYOpen these 19 in EasyCompare
InvestmentWhy it is betterPast 5 yearsDownsideLong runFit
Annual return?higher is betterVolatility?lower is calmerSharpe?return per unit of riskWorst decline?past 10 years10Y returntotalCorr. with QUAL?lower diversifies moreExpenseper year
QUALiShares MSCI USA Quality Factor ETF · this page
+11.4%17.3%0.71−34.1%+293%1.000.15%
SPYState Street SPDR S&P 500 ETF · S&P 500
+12.7%17.1%0.79−33.7%+321%0.980.09%
Popular alternativesbest 4 shownThe investments people most often weigh against QUAL. 5 of 19 passed at least one test.
JQUAJPMorgan U.S. Quality Factor ETF · US Quality Equity
Higher return, lower volatilityHigher return in most periods+13.6%15.7%0.89−32.9%—0.970.12%
SPMOInvesco S&P 500 Momentum ETF · US Momentum Equity
Higher return in most periods+18.7%20.8%0.93−30.9%+499%0.810.13%
SPYState Street SPDR S&P 500 ETF · US Large-Cap Equity
Same exposure, lower expense ratio+12.7%17.1%0.79−33.7%+321%0.980.09%
DYNFiShares U.S. Equity Factor Rotation Active ETF · US Multifactor Equity
Higher return, similar volatility+14.7%17.5%0.87−34.7%—0.970.26%
Same and neighboring categories, and shared themesbest 6 shownEverything else in US Quality Equity and the categories next to it (US Large-Cap Equity, US Dividend Equity, US Momentum Equity, US Large-Cap Value), plus QUAL's specific themes. 25 of 59 passed at least one test.
FNDXSchwab Fundamental U.S. Large Company ETF · US Large-Cap Value
Higher return, lower volatilityHigher return in most periods+13.5%14.9%0.93−37.7%+291%0.910.25%
VLUEiShares MSCI USA Value Factor ETF · US Large-Cap Value
Higher return, similar volatilityHigher return in most periods+15.9%18.4%0.90−39.5%+286%0.790.15%
HDViShares Core High Dividend ETF · US Dividend Equity
Higher return, lower volatility+12.9%13.0%1.00−37.0%+172%0.620.08%
MGVVanguard Morningstar Mega Cap Value ETF · US Large-Cap Value
Higher return, lower volatility+12.6%13.4%0.95−35.4%+244%0.850.05%
FDVVFidelity High Dividend ETF · US Dividend Equity
Higher return, lower volatility+13.2%14.6%0.92−40.2%+253%0.890.15%
VYMVanguard High Dividend Yield ETF · US Dividend Equity
Similar return, lower volatility+11.3%13.8%0.85−35.2%+208%0.820.04%
The whole marketbest 8 shownEvery other stock and fund worth at least $500 million. 164 of 3,555 passed at least one test.
RYRoyal Bank of Canada · Banks
On the frontierHigher return, similar volatilityHigher return in most periods+17.3%18.2%0.97−40.0%+352%0.58—
DFIVDimensional - International Value ETF · International Equity
Higher return, lower volatilityHigher Sharpe, smaller worst decline+14.8%16.4%0.93−25.4%—0.680.27%
IWXiShares Russell Top 200 Value ETF · Broad Market
Higher return, lower volatilityHigher return in most periods+12.7%13.8%0.94−35.8%+221%0.860.20%
KOThe Coca-Cola Company · Food & Beverages
Higher return, similar volatilityHigher return in most periods+14.7%16.8%0.91−37.0%+204%0.36—
DIVIFranklin International Core Dividend Tilt Index ETF · International
Higher return, lower volatilityHigher Sharpe, smaller worst decline+13.4%15.5%0.89−27.7%+184%0.780.09%
PJULInnovator U.S. Equity Power Buffer ETF · Broad Market
On the frontierSimilar return, lower volatilityHigher Sharpe, smaller worst decline+10.5%8.6%1.20−18.2%—0.910.79%
VTIVanguard Morningstar Total Stock Market ETF · US Total Market
Same exposure, lower expense ratio+11.5%17.5%0.71−35.0%+302%0.970.03%
WMWaste Management, Inc. · Environmental Services
Smaller losses in recent crashes+9.3%19.2%0.56−30.1%+344%0.45—
What these numbers mean for QUAL
Annual return
QUAL returned 11.4% a year over the past 5 years with dividends reinvested, against 12.7% a year for the S&P 500. At that pace, $10,000 became about $17,200. Annual return is the steady yearly rate that would produce the same total result, so investments held over the same span compare fairly. Guide: What is performance and return? →
Volatility
QUAL's volatility over the past 5 years was 17.3%, 1.0 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, QUAL's return lands within 17.3% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump. Guide: Understanding and measuring risk (volatility) →
Sharpe ratio
QUAL's Sharpe ratio over the past 5 years was 0.71, against 0.79 for the S&P 500, so QUAL earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings. Guide: Balancing reward with risk (Sharpe ratio) →
Worst decline
QUAL's worst fall from a peak to a low over the past 10 years was 34.1%, against 33.7% for the S&P 500. Losses and gains are not symmetric: climbing back from a 34.1% fall takes a 51.7% gain. Guide: Market crash risk and tail risk →
Correlation
Over the past 5 years, QUAL's monthly returns had a correlation of 0.98 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They move almost in lockstep, so holding both adds little diversification. In the table, the correlation column measures each option against QUAL instead: the lower it is, the more that option would diversify a QUAL holding. Guide: Correlation and diversification →
Show all 46 stocks and funds worth at least $500 million that earned more than QUAL with less volatility

Out of 3,633 tested over 5 years. The strongest 29 are listed, best first, with funds that hold the same thing listed once.

#InvestmentFound inAnnual returnVolatilitySharpeWorst decline10Y returnCorr. with QUALExpense
1
FNDXSchwab Fundamental U.S. Large Company ETF · US Large-Cap Value
Same or nearby category+13.5%14.9%0.93−37.7%+291%0.910.25%
2
DFIVDimensional - International Value ETF · International Equity
Whole market+14.8%16.4%0.93−25.4%—0.680.27%
3
IWXiShares Russell Top 200 Value ETF · Broad Market
Whole market+12.7%13.8%0.94−35.8%+221%0.860.20%
4
DIVBiShares Core Dividend ETF · Dividend & Income
Whole market+13.9%15.4%0.93−36.9%—0.850.05%
5
JQUAJPMorgan U.S. Quality Factor ETF · US Quality Equity
Popular alternative+13.6%15.7%0.89−32.9%—0.970.12%
6
PWVInvesco Large Cap Value ETF · Broad Market
Whole market+13.5%14.2%0.97−37.6%+223%0.770.55%
7
FDRRFidelity Dividend ETF for Rising Rates · Dividend & Income
Whole market+12.6%15.0%0.87−36.5%+265%0.910.15%
8
FYLDCambria Foreign Shareholder Yield ETF · Dividend & Income
Whole market+13.1%16.0%0.85−44.6%+203%0.620.59%
9
DIVIFranklin International Core Dividend Tilt Index ETF · International
Whole market+13.4%15.5%0.89−27.7%+184%0.780.09%
10
SIXAETC 6 Meridian Mega Cap Equity ETF · Broad Market
Whole market+12.8%12.7%1.01−18.4%—0.850.31%
11
LVHIFranklin International Low Volatility High Dividend Index ETF · International Equity
Whole market+17.0%11.1%1.48−32.4%+194%0.600.40%
12
VSLUApplied Finance Valuation Large Cap ETF · Broad Market
Whole market+13.7%16.2%0.88−23.8%—0.960.49%
13
FNDFSchwab Fundamental International Large Company Index ETF · International Equity
Whole market+13.6%16.3%0.87−40.2%+194%0.740.25%
14
DBEFXtrackers MSCI EAFE Hedged Equity ETF · International Equity
Whole market+13.1%13.8%0.96−32.5%+206%0.860.35%
15
IDViShares International Select Dividend ETF · International Equity
Whole market+12.8%15.5%0.86−42.5%+159%0.600.50%
16
EMLPFirst Trust North American Energy Infrastructure Fund · Energy Infrastructure
Whole market+14.9%14.5%1.04−43.6%+150%0.630.95%
17
HDViShares Core High Dividend ETF · US Dividend Equity
Same or nearby category+12.9%13.0%1.00−37.0%+172%0.620.08%
18
GCOWPacer Global Cash Cows Dividend ETF · International
Whole market+14.1%13.6%1.04−37.6%+168%0.550.60%
19
MGVVanguard Morningstar Mega Cap Value ETF · US Large-Cap Value
Same or nearby category+12.6%13.4%0.95−35.4%+244%0.850.05%
20
FDVVFidelity High Dividend ETF · US Dividend Equity
Same or nearby category+13.2%14.6%0.92−40.2%+253%0.890.15%
21
FDLFirst Trust Morningstar Dividend Leaders Index Fund · US Dividend Equity
Same or nearby category+13.9%14.4%0.98−41.4%+199%0.590.43%
22
FTGCFirst Trust Global Tactical Commodity Strategy Fund · Alternatives
Whole market+12.9%15.6%0.86−35.9%+139%0.120.98%
23
HDEFXtrackers MSCI EAFE High Dividend Yield Equity ETF · International
Whole market+12.8%14.2%0.92−36.4%+134%0.620.09%
24
FLQLFranklin U.S. Large Cap Multifactor Index ETF · Broad Market
Whole market+13.8%16.3%0.88−33.6%—0.970.15%
25
AUSFGlobal X - Adaptive U.S. Factor ETF · International
Whole market+13.2%13.6%0.99−44.2%—0.750.27%
26
DGTState Street SPDR Global Dow ETF · International
Whole market+13.8%15.1%0.94−34.4%+261%0.860.50%
27
IDOGALPS International Sector Dividend Dogs ETF · International
Whole market+14.1%15.6%0.93−37.3%+180%0.620.50%
28
QDEFNorthern Trust Quality Dividend Defensive ETF · Dividend & Income
Whole market+12.7%13.7%0.94−35.7%+228%0.950.40%
29
IGLDFT Vest Gold Strategy Target Income ETF · Multi-Asset
Whole market+12.5%16.1%0.82−99.1%−96.9%0.220.85%

QUAL against its popular alternatives

The investments people most often weigh against QUAL, compared period by period and year by year.

How do QUAL's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings. Investments toward the upper left earned more for a smoother ride, and those toward the lower right earned less for a rougher one. The dashed lines cross at QUAL, which divides the map into what did better or worse on each measure.

Green points earned more than QUAL with less volatility; red points earned less with more. Hover over a point for its figures. Total returns with dividends reinvested, annualized.

12.0%14.0%16.0%18.0%20.0%22.0%24.0%6.0%8.0%10.0%12.0%14.0%16.0%18.0%20.0%Volatility over 5 years (annualized)Annual return over 5 yearsHigher return, lower volatilityLower return, higher volatilityQUAL: 11.4% a year, volatility 17.3%SPY (S&P 500): 12.7% a year, volatility 17.1%JQUA: 13.6% a year, volatility 15.7%MTUM: 10.9% a year, volatility 22.1%LRGF: 13.7% a year, volatility 17.1%IWD: 11.4% a year, volatility 14.7%SPHQ: 12.0% a year, volatility 16.7%GSLC: 11.6% a year, volatility 16.7%FQAL: 11.6% a year, volatility 16.2%DGRW: 11.8% a year, volatility 14.0%XMHQ: 9.7% a year, volatility 20.5%QDF: 11.5% a year, volatility 15.6%SPMO: 18.7% a year, volatility 20.8%IWF: 11.7% a year, volatility 21.8%DYNF: 14.7% a year, volatility 17.5%OMFL: 9.0% a year, volatility 16.4%QUS: 11.1% a year, volatility 14.2%OUSA: 9.4% a year, volatility 13.4%USMV: 7.6% a year, volatility 12.3%VIG: 10.4% a year, volatility 14.1%QUALSPY (S&P 500)JQUAMTUMLRGFIWDSPHQGSLCDGRWXMHQSPMOIWFDYNFOMFLQUSOUSAUSMVVIG12.0%14.0%16.0%18.0%20.0%22.0%24.0%6.0%8.0%10.0%12.0%14.0%16.0%18.0%20.0%Volatility over 5 years (annualized)Annual return over 5 yearsHigher return, lower volatilityLower return, higher volatilityQUAL: 11.4% a year, volatility 17.3%SPY (S&P 500): 12.7% a year, volatility 17.1%JQUA: 13.6% a year, volatility 15.7%MTUM: 10.9% a year, volatility 22.1%LRGF: 13.7% a year, volatility 17.1%IWD: 11.4% a year, volatility 14.7%SPHQ: 12.0% a year, volatility 16.7%GSLC: 11.6% a year, volatility 16.7%FQAL: 11.6% a year, volatility 16.2%DGRW: 11.8% a year, volatility 14.0%XMHQ: 9.7% a year, volatility 20.5%QDF: 11.5% a year, volatility 15.6%SPMO: 18.7% a year, volatility 20.8%IWF: 11.7% a year, volatility 21.8%DYNF: 14.7% a year, volatility 17.5%OMFL: 9.0% a year, volatility 16.4%QUS: 11.1% a year, volatility 14.2%OUSA: 9.4% a year, volatility 13.4%USMV: 7.6% a year, volatility 12.3%VIG: 10.4% a year, volatility 14.1%QUALSPY (S&P 500)JQUAMTUMLRGFIWDFQALDGRWXMHQSPMOIWFDYNFOMFLQUSOUSAUSMVVIG
All figures
InvestmentAnnual returnVolatility
SPMO Invesco S&P 500 Momentum ETF+18.7%20.8%
DYNF iShares U.S. Equity Factor Rotation Active ETF+14.7%17.5%
LRGF iShares U.S. Equity Factor ETF+13.7%17.1%
JQUA JPMorgan U.S. Quality Factor ETF+13.6%15.7%
SPY S&P 500State Street SPDR S&P 500 ETF+12.7%17.1%
SPHQ Invesco S&P 500 Quality ETF+12.0%16.7%
DGRW WisdomTree U.S. Quality Dividend Growth Fund+11.8%14.0%
IWF iShares Russell 1000 Growth ETF+11.7%21.8%
GSLC Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF+11.6%16.7%
FQAL Fidelity Quality Factor ETF+11.6%16.2%
QDF Northern Trust Quality Dividend ETF+11.5%15.6%
IWD iShares Russell 1000 Value ETF+11.4%14.7%
QUAL This pageiShares MSCI USA Quality Factor ETF+11.4%17.3%
QUS State Street SPDR MSCI USA StrategicFactors ETF+11.1%14.2%
MTUM iShares MSCI USA Momentum Factor ETF+10.9%22.1%
VIG Vanguard Dividend Appreciation ETF+10.4%14.1%
XMHQ Invesco S&P MidCap Quality ETF+9.7%20.5%
OUSA ALPS Funds O’Shares U.S. Quality Dividend ETF+9.4%13.4%
OMFL Invesco Russell 1000 Dynamic Multifactor ETF+9.0%16.4%
USMV iShares MSCI USA Min Vol Factor ETF+7.6%12.3%
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Has QUAL consistently beaten its popular alternatives?

This section compares QUAL with the investments people most often weigh against it, checking each one over eight periods from one month to ten years. Counting how often an alternative earned more than QUAL helps separate lasting outperformance from a single strong stretch.

A green cell means the alternative earned more than QUAL over that period. "Qualified" marks those that did so in at least 3 of 5 short-term periods and 2 of 3 long-term periods.

InvestmentPeriods outperformed Short termLong termRisk · 5 yearsFund
1M3M6MYTD1Y3Y5Y10YVolatilitylower is calmerSharpehigher is betterWorst declinepast 10 yearsExpenseAssetsOverlapsame sectors
QUAL iShares MSCI USA Quality Factor ETF (this page)—+1.2%+4.3%+9.7%+14.0%+16.4%+76.9%+71.5%+293%17.3%0.71−34.1%0.15%$48B—
SPMO QualifiedInvesco S&P 500 Momentum ETF3/5 short3/3 long−6.7%−1.6%+11.6%+19.3%+18.1%+156%+136%+499%20.8%0.93−30.9%0.13%$22B80%
JQUA QualifiedJPMorgan U.S. Quality Factor ETF5/5 short2/3 long+1.9%+6.2%+16.0%+21.2%+22.2%+84.2%+88.9%—15.7%0.89−32.9%0.12%$9.2B91%
IWF Broad MarketiShares Russell 1000 Growth ETF0/5 short3/3 long−3.0%+2.6%+3.3%+4.1%+4.0%+87.7%+74.1%+416%21.8%0.62−32.7%0.18%$125B76%
SPY Broad MarketState Street SPDR S&P 500 ETF0/5 short3/3 long−0.6%+3.9%+9.1%+13.5%+15.8%+89.3%+81.7%+321%17.1%0.79−33.7%0.09%$823B98%
MTUM Broad MarketiShares MSCI USA Momentum Factor ETF2/5 short2/3 long−6.5%−2.0%+8.5%+17.5%+17.2%+119%+68.0%+336%22.1%0.58−34.1%0.15%$19B77%
DYNF Broad MarketiShares U.S. Equity Factor Rotation Active ETF1/5 short2/3 long−1.9%+3.4%+9.1%+14.1%+17.1%+106%+98.5%—17.5%0.87−34.7%0.26%$42B92%
LRGF Broad MarketiShares U.S. Equity Factor ETF0/5 short2/3 long−0.5%+4.3%+10.1%+13.9%+15.0%+91.5%+89.8%+274%17.1%0.84−36.0%0.08%$3.7B98%
IWD Broad MarketiShares Russell 1000 Value ETF3/5 short1/3 long+1.7%+4.7%+14.2%+22.7%+27.7%+84.4%+71.7%+205%14.7%0.81−38.5%0.18%$84B76%
ROE Broad MarketAstoria US Equal Weight Quality Kings ETF3/5 short1/3 long−0.1%+4.4%+11.7%+21.5%+26.5%+96.1%————−19.1%0.49%$255M97%
SPHQ Broad MarketInvesco S&P 500 Quality ETF0/5 short1/3 long−0.6%0.0%+5.2%+12.7%+14.9%+75.6%+76.1%+300%16.7%0.76−31.6%0.20%$19B79%
GSLC Broad MarketGoldman Sachs ActiveBeta U.S. Large Cap Equity ETF0/5 short1/3 long0.0%+4.2%+8.5%+11.9%+14.0%+83.5%+73.1%+297%16.7%0.74−33.7%0.09%$15B96%
FQAL Broad MarketFidelity Quality Factor ETF0/5 short1/3 long+0.6%+4.4%+9.5%+13.3%+15.1%+80.4%+73.1%+291%16.2%0.76−33.7%0.15%$1.4B95%
DGRW Dividend & IncomeWisdomTree U.S. Quality Dividend Growth Fund0/5 short1/3 long+0.6%+4.3%+6.5%+11.7%+12.8%+65.2%+74.6%+276%14.0%0.87−32.0%0.28%$17B89%
OMFL Broad MarketInvesco Russell 1000 Dynamic Multifactor ETF3/5 short0/3 long+1.5%+4.5%+10.3%+16.6%+19.5%+66.6%+54.1%—16.4%0.61−33.2%0.29%$4.8B91%
QUS Broad MarketState Street SPDR MSCI USA StrategicFactors ETF2/5 short0/3 long+1.8%+5.1%+9.5%+13.4%+15.9%+71.9%+69.3%+273%14.2%0.81−33.8%0.15%$1.6B86%
OUSA Dividend & IncomeALPS Funds O’Shares U.S. Quality Dividend ETF2/5 short0/3 long+3.3%+5.4%+9.1%+10.3%+12.7%+57.9%+56.8%+186%13.4%0.74−33.1%0.48%$728M80%
USMV Broad MarketiShares MSCI USA Min Vol Factor ETF2/5 short0/3 long+3.3%+6.4%+8.7%+10.4%+9.7%+49.7%+44.4%+176%12.3%0.66−33.1%0.15%$24B82%
VIG Dividend & IncomeVanguard Dividend Appreciation ETF1/5 short0/3 long+2.4%+3.4%+7.8%+11.5%+13.7%+67.0%+64.0%+258%14.1%0.78−31.7%0.04%$128B73%
XMHQ Broad MarketInvesco S&P MidCap Quality ETF1/5 short0/3 long+1.7%+3.8%+6.8%+12.2%+11.9%+59.9%+58.9%+240%20.5%0.56−36.9%0.30%$5.4B65%
QDF Dividend & IncomeNorthern Trust Quality Dividend ETF0/5 short0/3 long−0.4%+1.7%+8.0%+13.3%+16.4%+75.0%+72.3%+215%15.6%0.78−36.7%0.40%$2.2B93%
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How did QUAL do year by year?

This table shows each investment's total return in every full calendar year since 2014, along with where QUAL ranked among its popular alternatives each year. Annual results reveal how consistently each one kept pace with QUAL and how far its good and bad years diverged, detail that multiyear averages tend to smooth over.

Note: QUAL began trading on July 18, 2013, so the table starts with 2014, its first full calendar year, and cannot show how it fared during the dot-com bust, the 2008 financial crisis or two other sell-offs.

Newest year first. Green marks a year in which the fund came out ahead of QUAL; gray means the two finished within a fraction of a point. The rank row places QUAL among the alternatives that traded the full year; dark green is the top quarter and red the bottom quarter.

InvestmentYears ahead of QUAL202520242023202220212020201920182017201620152014
QUAL This pageiShares MSCI USA Quality Factor ETF—+12.7%+22.3%+30.9%−20.5%+26.9%+17.0%+33.9%−5.7%+22.3%+9.2%+5.4%+11.7%
Rank among alternativesTop quarter in 2 of 1215 of 208 of 203 of 1918 of 197 of 198 of 193 of 1813 of 187 of 1611 of 154 of 109 of 10
SPY S&P 500State Street SPDR S&P 500 ETF8 of 12+17.7%+24.9%+26.2%−18.2%+28.7%+18.3%+31.2%−4.6%+21.7%+12.0%+1.2%+13.5%
SPMO Invesco S&P 500 Momentum ETF6 of 10+26.6%+45.8%+17.6%−10.4%+22.7%+28.2%+25.9%−0.9%+27.8%+7.4%——
JQUA JPMorgan U.S. Quality Factor ETF3 of 8+11.7%+21.2%+25.1%−13.4%+28.7%+16.6%+28.5%−2.9%————
IWF iShares Russell 1000 Growth ETF8 of 12+18.3%+33.1%+42.6%−29.3%+27.4%+38.3%+35.9%−1.7%+29.9%+7.0%+5.5%+12.7%
MTUM iShares MSCI USA Momentum Factor ETF8 of 12+22.1%+32.9%+9.2%−18.3%+13.4%+29.8%+27.3%−1.7%+37.5%+5.0%+8.9%+14.6%
DYNF iShares U.S. Equity Factor Rotation Active ETF3 of 6+20.0%+30.3%+36.2%−20.3%+24.9%+13.5%——————
LRGF iShares U.S. Equity Factor ETF4 of 10+16.5%+26.6%+25.8%−14.8%+25.0%+11.1%+26.1%−9.6%+21.2%+12.9%——
IWD iShares Russell 1000 Value ETF4 of 12+15.7%+14.2%+11.3%−7.7%+24.9%+2.7%+26.1%−8.4%+13.4%+17.3%−4.0%+13.2%
ROE Astoria US Equal Weight Quality Kings ETF1 of 2+17.2%+18.3%——————————
SPHQ Invesco S&P 500 Quality ETF6 of 12+13.3%+25.4%+24.8%−15.8%+28.0%+17.4%+33.6%−7.0%+19.1%+14.3%+1.7%+16.1%
GSLC Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF5 of 10+16.2%+24.2%+25.1%−18.7%+27.2%+19.0%+30.7%−4.1%+22.5%+8.7%——
FQAL Fidelity Quality Factor ETF5 of 9+16.9%+21.9%+24.2%−19.7%+32.1%+16.2%+28.1%−4.4%+23.0%———
DGRW WisdomTree U.S. Quality Dividend Growth Fund4 of 12+12.2%+16.8%+18.7%−6.3%+24.5%+13.8%+29.5%−5.4%+25.7%+12.2%−0.3%+13.8%
OMFL Invesco Russell 1000 Dynamic Multifactor ETF6 of 8+13.6%+6.8%+21.6%−14.0%+28.9%+20.9%+35.6%−2.6%————
QUS State Street SPDR MSCI USA StrategicFactors ETF4 of 10+14.1%+19.0%+21.8%−14.1%+26.7%+12.4%+32.4%−3.6%+21.7%+9.7%——
OUSA ALPS Funds O’Shares U.S. Quality Dividend ETF3 of 10+10.2%+17.1%+13.4%−9.3%+23.8%+6.9%+24.9%−3.1%+18.2%+12.3%——
USMV iShares MSCI USA Min Vol Factor ETF4 of 12+7.6%+15.7%+10.3%−9.4%+20.8%+5.7%+27.7%+1.4%+18.9%+10.6%+5.5%+16.3%
VIG Vanguard Dividend Appreciation ETF4 of 12+14.2%+17.0%+14.5%−9.8%+23.8%+15.4%+29.6%−2.1%+22.2%+12.0%−1.9%+10.1%
XMHQ Invesco S&P MidCap Quality ETF4 of 12+4.7%+16.8%+29.5%−12.4%+21.0%+26.6%+27.2%−9.1%+15.7%+16.1%−6.5%+13.1%
QDF Northern Trust Quality Dividend ETF3 of 12+16.6%+17.0%+19.7%−12.1%+26.7%+4.9%+25.7%−8.0%+17.4%+17.0%−0.9%+11.8%
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Risk and diversification

How QUAL has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

What were QUAL's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high. This section presents QUAL's five deepest drawdowns since it began trading in 2013, alongside the S&P 500's return over the same dates, and how long each took to recover. Together, these figures show how much an investor could have lost and how long it took to get back to even.

Note: QUAL began trading on July 18, 2013, so this list cannot include the dot-com bust, the 2008 financial crisis or two other sell-offs. The crash tests on this page show how older funds and the S&P 500 fared through those years.

Green means QUAL fell less than the S&P 500 over the same dates. Based on daily closing prices with dividends reinvested.

DuringQUAL fellS&P 500, same datesPeakLowTime to the lowBack at the peakTime to recover
Covid crash−34.1%−33.7%Feb 2020Mar 20201 monthAug 20205 months
2022 bear market−28.2%−24.2%Dec 2021Oct 202210 monthsDec 202314 months
Late-2018 sell-off−20.5%−19.3%Sep 2018Dec 20183 monthsApr 20194 months
No named crash−18.0%−17.8%Dec 2024Apr 20254 monthsJul 20253 months
2015 China and oil sell-off−11.5%−11.9%Jul 2015Aug 20151 monthOct 20152 months

How did QUAL do in stock market crashes?

This section measures how far QUAL, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000. A smaller decline means an investment held up better, and comparing results across crashes shows whether that resilience was consistent or a one-off.

Note: QUAL began trading on July 18, 2013, so its row reads "Not yet trading" for the dot-com bust, the 2008 financial crisis or two other sell-offs. The older alternatives and the S&P 500 show how those crashes played out.

Newest crash first. Each figure is the fund's deepest fall within the crash window; green means a smaller fall than QUAL.

InvestmentHeld up better2023 regional bank crisisMar 20232022 bear marketJan 2022Covid crashFeb 2020Late-2018 sell-offSep 2018February 2018 volatility shockFeb 20182015 China and oil sell-offAug 20152011 euro debt crisisJul 20112010 flash crashMay 20102008 financial crisisOct 2007Dot-com bustMar 2000
QUAL This pageiShares MSCI USA Quality Factor ETF—−3.3%−27.5%−34.1%−20.5%−6.1%−11.2%Not yet tradingNot yet tradingNot yet tradingNot yet trading
SPY S&P 500State Street SPDR S&P 500 ETF2 of 6−3.4%−24.5%−33.7%−19.3%−6.5%−12.8%−17.9%−1.5%−55.2%−47.5%
SPMO Invesco S&P 500 Momentum ETF3 of 5−2.4%−22.7%−30.9%−23.4%−6.7%—————
JQUA JPMorgan U.S. Quality Factor ETF3 of 5−3.2%−21.8%−32.9%−17.1%−8.4%—————
IWF iShares Russell 1000 Growth ETF1 of 6−3.4%−31.2%−31.5%−21.9%−6.4%−13.4%−18.2%−2.0%−51.2%—
MTUM iShares MSCI USA Momentum Factor ETF0 of 6−3.0%−27.9%−34.1%−22.1%−6.4%−13.0%————
DYNF iShares U.S. Equity Factor Rotation Active ETF1 of 3−3.6%−26.0%−34.7%———————
LRGF iShares U.S. Equity Factor ETF1 of 6−4.1%−21.6%−36.0%−21.3%−6.2%−15.2%————
IWD iShares Russell 1000 Value ETF2 of 6−4.6%−19.0%−38.4%−18.0%−6.4%−14.3%−19.5%−1.6%−59.9%—
SPHQ Invesco S&P 500 Quality ETF4 of 6−2.5%−25.0%−31.5%−20.8%−6.3%−8.5%−15.3%−3.2%−57.8%—
GSLC Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF2 of 5−3.4%−24.6%−33.7%−19.6%−6.1%—————
FQAL Fidelity Quality Factor ETF2 of 5−3.8%−24.8%−33.7%−18.6%−5.9%—————
DGRW WisdomTree U.S. Quality Dividend Growth Fund3 of 6−3.2%−17.3%−31.9%−18.6%−6.6%−11.8%————
OMFL Invesco Russell 1000 Dynamic Multifactor ETF4 of 5−2.2%−21.5%−32.8%−18.2%−6.1%—————
QUS State Street SPDR MSCI USA StrategicFactors ETF2 of 6−3.0%−22.1%−33.8%−17.4%−6.4%−11.5%————
OUSA ALPS Funds O’Shares U.S. Quality Dividend ETF5 of 6−2.3%−19.0%−32.6%−13.3%−6.2%−9.9%————
USMV iShares MSCI USA Min Vol Factor ETF5 of 6−2.2%−17.0%−33.0%−12.7%−6.2%−9.5%————
VIG Vanguard Dividend Appreciation ETF4 of 6−3.1%−20.4%−31.6%−17.3%−6.3%−10.1%−15.6%−1.4%−46.8%—
XMHQ Invesco S&P MidCap Quality ETF1 of 6−6.1%−23.4%−36.9%−21.8%−6.3%−18.7%−21.3%0.0%−57.3%—
QDF Northern Trust Quality Dividend ETF2 of 6−3.6%−22.1%−36.1%−19.9%−6.2%−12.0%————
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How closely does QUAL move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell. An investment that captures more of the gains than the losses has compounded ahead of the market over time. This section compares QUAL with its popular alternatives on both measures, and on beta (how strongly each has moved with the market), over the past 10 years.

Monthly total returns over the past 10 years, measured against SPY. 100% capture or a beta of 1.00 means moving in line with the S&P 500. Green marks a better figure than QUAL's: more upside, less downside or a higher capture ratio. Sorted by capture ratio.

InvestmentUpside captureDownside captureCapture ratioBeta
QUAL This pageiShares MSCI USA Quality Factor ETF98%102%0.961.00
SPMO Invesco S&P 500 Momentum ETF102%76%1.350.99
MTUM iShares MSCI USA Momentum Factor ETF94%81%1.160.99
IWF iShares Russell 1000 Growth ETF110%104%1.061.10
SPHQ Invesco S&P 500 Quality ETF91%87%1.050.91
FQAL Fidelity Quality Factor ETF95%96%0.990.96
DGRW WisdomTree U.S. Quality Dividend Growth Fund91%93%0.990.88
QUS State Street SPDR MSCI USA StrategicFactors ETF90%90%0.990.88
VIG Vanguard Dividend Appreciation ETF85%86%0.990.84
GSLC Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF97%99%0.980.98
LRGF iShares U.S. Equity Factor ETF95%99%0.960.99
USMV iShares MSCI USA Min Vol Factor ETF70%75%0.940.70
XMHQ Invesco S&P MidCap Quality ETF94%105%0.901.01
QDF Northern Trust Quality Dividend ETF91%103%0.890.96
IWD iShares Russell 1000 Value ETF87%99%0.880.93
OUSA ALPS Funds O’Shares U.S. Quality Dividend ETF80%91%0.870.79
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What diversifies QUAL?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions). This section lists large ETFs and stocks whose returns have had a low correlation with QUAL's. Because such investments tend not to fall at the same time, pairing QUAL with them can reduce a portfolio's overall swings.

Only ETFs with at least $1.0B in assets and stocks worth at least $10B, with a correlation below 0.5 over the past 5 years and a positive return, are included, ranked by Sharpe ratio; funds that hold the same thing are shown once. The year columns are the years in which QUAL lost money. The last two columns show a portfolio that is 80% QUAL and 20% the other investment, rebalanced monthly.

ETFs

InvestmentCorrelation5Y returnSharpe2022201880/20 mix volatility80/20 mix annual return
QUAL iShares MSCI USA Quality Factor ETF (this page)1.00+71.5%0.71−20.5%−5.7%16.0%+12.3%
GLD CommoditiesSPDR Gold Shares0.18+126%0.96−0.8%−1.9%13.9%+13.9%
XLE EnergyState Street Energy Select Sector SPDR ETF0.28+177%0.93+64.4%−18.2%15.1%+15.0%
AMLP EnergyAlerian MLP ETF0.45+111%0.89+25.5%−12.6%14.8%+13.8%
DBMF AlternativesiMGP DBi Managed Futures Strategy ETF-0.28+59.7%0.82+21.6%—12.3%+12.3%
DBA AlternativesInvesco DB Agriculture Fund0.17+66.4%0.81+2.5%−8.7%13.4%+12.3%
GDX MaterialsVanEck Gold Miners ETF0.31+181%0.73−9.0%−8.8%16.8%+16.1%
USO CommoditiesUnited States Oil Fund, LP-0.06+176%0.73+29.0%−19.6%14.5%+15.7%
FLSP AlternativesFranklin Systematic Style Premia ETF0.10+49.8%0.68+0.5%—13.1%+11.8%

Stocks

InvestmentCorrelation5Y returnSharpe2022201880/20 mix volatility80/20 mix annual return
QUAL iShares MSCI USA Quality Factor ETF (this page)1.00+71.5%0.71−20.5%−5.7%16.0%+12.3%
CAH Medical - DistributionCardinal Health, Inc.0.32+479%1.55+54.1%−24.5%15.3%+17.6%
CLS Hardware, Equipment & PartsCelestica Inc.0.47+3,143%1.47+1.3%−16.3%21.1%+30.0%
MCK Medical - DistributionMcKesson Corporation0.21+413%1.44+51.8%−28.4%14.7%+17.1%
MPC Oil & Gas Refining & MarketingMarathon Petroleum Corporation0.26+690%1.41+86.6%−8.2%15.8%+19.7%
ATI Manufacturing - Metal FabricationATI Inc.0.30+1,008%1.34+87.5%−9.8%18.1%+22.8%
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Common questions

What was QUAL's worst drawdown?

QUAL's deepest decline since it began trading in 2013 was 34.1%, from February to March 2020. It took five months from the low to climb back to its old high. Because QUAL launched in July 2013, that record does not include the dot-com bust, the 2008 financial crisis or two other sell-offs.

What were QUAL's best and worst years?

Over 12 full calendar years, QUAL's best year was 2019, when it returned 33.9%. Its worst was 2022, with a return of -20.5%.

Is there a better investment than QUAL?

Among QUAL's popular alternatives, JQUA earned more than QUAL with less volatility over the past 5 years: 13.6% a year at 15.7% volatility, against 11.4% a year at 17.3%. GSLC tracks the same thing for 0.09% a year against QUAL's 0.15%, and has kept pace over the past decade: about $60 less in fees on $10,000 over 10 years.

Is QUAL more volatile than the S&P 500?

Yes. QUAL's volatility over the past 5 years was 17.3%, 1.0 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, QUAL's return lands within 17.3% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

What is QUAL's Sharpe ratio?

QUAL's Sharpe ratio over the past 5 years was 0.71, against 0.79 for the S&P 500, so QUAL earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

How correlated is QUAL with the S&P 500?

Over the past 5 years, QUAL's monthly returns had a correlation of 0.98 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They move almost in lockstep, so holding both adds little diversification. In the table, the correlation column measures each option against QUAL instead: the lower it is, the more that option would diversify a QUAL holding.

What are the best alternatives to QUAL?

Of the 20 popular alternatives we compared, two outperformed QUAL in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: SPMO and JQUA.

Did QUAL outperform the S&P 500?

QUAL finished ahead of the S&P 500 (SPY) in three of 12 full calendar years. In 2025, it returned +12.6%, against +17.7% for the index.

How did QUAL do in stock market crashes?

QUAL fell less than the S&P 500 (SPY) in one of the six major crashes it has traded through, and further in two. The clearest case was the 2022 bear market, when QUAL fell 27.5% and the S&P 500 fell 24.5%.

What diversifies QUAL?

These had a low correlation with QUAL over the past 5 years and still earned a positive 5-year return: among large ETFs, GLD (correlation 0.18), XLE (correlation 0.28) and AMLP (correlation 0.45); among large stocks, CAH (correlation 0.32), CLS (correlation 0.47) and MCK (correlation 0.21). A correlation near zero means the two have moved largely independently.

How we measure

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