FQAL vs VGI
Fidelity Quality Factor ETF vs Virtus Global Multi-Sector Income Fund
Quick Verdict
FQAL has a lower expense ratio. FQAL delivered stronger 1-year returns. VGI offers more diversification with 646 holdings.
Side-by-Side Comparison
| Metric | FQAL | VGI | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 1.74% | |
| AUM | $1.4B | $88M | |
| Dividend Yield | 1.17% | 11.98% | |
| Holdings | 129 | 646 | |
| YTD Return | +13.77% | +1.20% | |
| 1Y Return | +18.87% | +4.44% | |
| 3Y Return (annualized) | +20.14% | +11.02% | |
| 5Y Return (annualized) | +11.96% | +1.85% | |
| Volatility (annualized) | 15.0% | 14.1% | |
| Max Drawdown | -34.1% | -63.3% | |
| Fund Family | Fidelity Investments (US) | Virtus Investment Partners | |
| Category | Equity | Fixed Income | |
| Inception | Sep 12, 2016 | Feb 23, 2012 |
FQAL vs VGI Performance
Fidelity Quality Factor ETF (FQAL) is a ETF from Fidelity Investments (US) and Virtus Global Multi-Sector Income Fund (VGI) is a ETF from Virtus Investment Partners. Over the past year FQAL returned +18.87% while VGI returned +4.44%. Year to date, FQAL is up 13.77% versus a gain of 1.20% for VGI.
Over three years, FQAL compounded at +20.14% per year against +11.02% for VGI; over five years the annualized figures are +11.96% and +1.85% respectively. Across the full 10-year window we track, FQAL has the edge at +13.92% annualized vs -2.40%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FQAL has been the more volatile fund, with annualized monthly volatility of 15.0% compared with 14.1% for VGI. 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 FQAL and -63.3% for VGI. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FQAL charges 0.15% per year while VGI charges 1.74%. On a $10,000 position that is $15 vs $174 annually, a gap of $159 per year that compounds over a long holding period. On income, FQAL currently yields 1.17% against 11.98% for VGI.
Holdings Overlap
FQAL and VGI share 0 holdings out of 559 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FQAL or VGI?
FQAL has an expense ratio of 0.15% while VGI charges 1.74%. FQAL is the cheaper option. On a $10,000 investment, that is $159 per year of difference.
Which performed better, FQAL or VGI?
Over the past year FQAL returned +18.87% vs +4.44% for VGI, so FQAL leads on 1-year performance. Over the longest common window we track (10 years), FQAL annualized +13.92% vs -2.40% for VGI. Past performance does not guarantee future results.
Which is riskier, FQAL or VGI?
FQAL has been the more volatile fund at 15.0% annualized versus 14.1% for VGI. Worst drawdown: FQAL -34.1% vs VGI -63.3%.
Should I hold both FQAL and VGI?
FQAL and VGI have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FQAL and VGI?
FQAL and VGI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, FQAL or VGI?
FQAL yields 1.17% while VGI yields 11.98%, so VGI currently pays the higher dividend yield.
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