BAI vs QLTY

BAI vs QLTY

Which is better, BAI or QLTY?

Large Cap Growth against Large Cap Blend.

QLTY has a lower expense ratio. BAI led over 1Y and the full window. BAI is less concentrated, with 42.0% of the fund in its ten largest positions against 45.5%.

Lower Fees: QLTYHigher Returns: BAILess Concentrated: BAI

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricBAIQLTY
Expense Ratio0.55%0.50%Best
AUM$14.2B$5.4B
Dividend Yield1.26%0.66%
Holdings5590
YTD Return+18.63%Best+13.92%
1Y Return+19.33%Best+18.97%
3Y Return (annualized)-+21.59%
Volatility (annualized)38.9%12.8%Best
Max Drawdown-34.1%-17.0%Best
$10,000 over 2 years$16,307Best$13,771
Top 10 Weight42.0%Best45.5%
Fund FamilyiShares by BlackRock (US)GMO
CategoryEquityEquity
StyleLarge Cap GrowthLarge Cap Blend
InceptionOct 21, 2024Nov 13, 2023

Not shown on this pair: 5Y Return (annualized).

Volatility and max drawdown, and the $10,000 over 2 years row, are measured over the window both funds cover: Oct 22, 2024 to Oct 22, 2026 (2 years).

BAI vs QLTY growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2 years both funds cover.

Compare BAI against instead:BAI vs SPYBAI vs QQQBAI vs VOOBAI vs VTIQLTY against:QLTY vs VXUS

BAI vs QLTY Performance

iShares AI Innovation and Tech Active ETF (BAI) is an ETF from iShares by BlackRock (US) and GMO US Quality ETF (QLTY) is an ETF from GMO. Over the past year BAI returned +19.33% while QLTY returned +18.97%. Year to date, BAI is up 18.63% versus a gain of 13.92% for QLTY.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

BAI has been the more volatile fund, with annualized monthly volatility of 38.9% compared with 12.8% for QLTY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -34.1% for BAI and -17.0% for QLTY. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.65. They move together some of the time, and apart the rest.

Fees and Cost Over Time

BAI charges 0.55% per year while QLTY charges 0.50%. On a $10,000 position that is $55 vs $50 annually, a gap of $5 per year that compounds over a long holding period. On income, BAI currently yields 1.26% against 0.66% for QLTY.

Holdings Overlap

BAI already in QLTY20.8%
QLTY already in BAI27.6%

20.8% of BAI's money is in holdings QLTY also owns. 27.6% of QLTY's money is in holdings BAI also owns.

QLTY and BAI share little of their money.

6 positions in common, counted across the 50 positions we hold weights for in BAI and 45 in QLTY, against full books of 55 and 90.

What only one of them owns

Our book lists 39 positions for QLTY that do not appear in our book for BAI (72.1% of the fund), and 30 for BAI that do not appear in QLTY (53.2%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in BAIWeight in QLTYDifference
MSFTMicrosoft Corp2.13%8.00%5.87%
NVDANvidia Corp5.30%3.30%2.00%
AVGOBroadcom Inc4.75%3.70%1.05%
LRCXLam Research Corp4.05%4.20%0.15%
GOOGLAlphabet Inc2.49%4.90%2.41%
AMZNAmazon.Com Inc2.05%3.50%1.45%

27.6% of QLTY is already inside BAI.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

BAIQLTY

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Frequently Asked Questions

Which is cheaper, BAI or QLTY?

BAI has an expense ratio of 0.55% while QLTY charges 0.50%. QLTY is the cheaper option, by $5 a year on a $10,000 investment.

Which performed better, BAI or QLTY?

Over the past year BAI returned +19.33% vs +18.97% for QLTY, so BAI leads on 1-year performance. Over the longest common window we track (2 years), BAI annualized +27.70% vs +17.35% for QLTY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, BAI or QLTY?

BAI has been the more volatile fund at 38.9% annualized versus 12.8% for QLTY. Worst drawdown: BAI -34.1% vs QLTY -17.0%.

Should I hold both BAI and QLTY?

BAI and QLTY have a monthly-return correlation of 0.65, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between BAI and QLTY?

27.6% of QLTY's money is in holdings BAI also owns. 27.6% of QLTY's is in holdings BAI also owns. They hold 6 positions in common, counted across the 50 positions we hold weights for in BAI and 45 in QLTY.

Which pays a higher dividend, BAI or QLTY?

BAI yields 1.26% while QLTY yields 0.66%, so BAI currently pays the higher dividend yield.

Is QLTY better than BAI?

QLTY has a lower expense ratio. BAI led over 1Y and the full window. BAI is less concentrated, with 42.0% of the fund in its ten largest positions against 45.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.