FQAL vs VTI
Fidelity Quality Factor ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | FQAL | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.03% | |
| AUM | $1.4B | $666.9B | |
| Dividend Yield | 1.15% | 1.07% | |
| Holdings | 130 | 3,543 | |
| YTD Return | +12.56% | +13.14% | |
| 1Y Return | +19.37% | +22.35% | |
| 3Y Return (annualized) | +20.54% | +21.83% | |
| 5Y Return (annualized) | +11.62% | +12.01% | |
| Volatility (annualized) | 15.0% | 15.3% | |
| Max Drawdown | -34.1% | -56.6% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 12, 2016 | May 24, 2001 |
FQAL vs VTI Performance
Fidelity Quality Factor ETF (FQAL) is a ETF from Fidelity Investments (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FQAL returned +19.37% while VTI returned +22.35%. Year to date, FQAL is up 12.56% versus a gain of 13.14% for VTI.
Over three years, FQAL compounded at +20.54% per year against +21.83% for VTI; over five years the annualized figures are +11.62% and +12.01% respectively. Across the full 10-year window we track, FQAL has the edge at +13.76% annualized vs +8.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 15.0% for FQAL. 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 -56.6% for VTI. 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 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FQAL charges 0.15% per year while VTI charges 0.03%. On a $10,000 position that is $15 vs $3 annually, a gap of $12 per year that compounds over a long holding period. On income, FQAL currently yields 1.15% against 1.07% for VTI.
Holdings Overlap
FQAL and VTI share 116 holdings out of 2796 unique holdings combined, representing a 45.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FQAL or VTI?
FQAL has an expense ratio of 0.15% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, FQAL or VTI?
Over the past year FQAL returned +19.37% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (10 years), FQAL annualized +13.76% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, FQAL or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 15.0% for FQAL. Worst drawdown: FQAL -34.1% vs VTI -56.6%.
Should I hold both FQAL and VTI?
FQAL and VTI have a monthly-return correlation of 0.99, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FQAL and VTI?
FQAL and VTI share 116 common holdings with a 45.1% weight overlap. Combined, they hold 2796 unique securities.
Which pays a higher dividend, FQAL or VTI?
FQAL yields 1.15% while VTI yields 1.07%, so FQAL currently pays the higher dividend yield.
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