KAT vs QLTY
Scharf ETF vs GMO US Quality ETF
Which is better, KAT or QLTY?
QLTY has been ahead.
QLTY has a lower expense ratio. QLTY led over 1Y and the full window. QLTY is less concentrated, with 44.9% of the fund in its ten largest positions against 50.1%.
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
| Metric | KAT | QLTY |
|---|---|---|
| Expense Ratio | 0.75% | 0.50%Best |
| AUM | $648M | $5.2B |
| Dividend Yield | 0.45% | 0.70% |
| Holdings | 68 | 90 |
| YTD Return | +6.65% | +14.67%Best |
| 1Y Return | +4.87% | +21.58%Best |
| 3Y Return (annualized) | - | +22.07% |
| Volatility (annualized) | 12.8% | 12.7%Best |
| Max Drawdown | -9.3%Best | -11.7% |
| $10,000 over 1.1 years | $10,748 | $12,699Best |
| Top 10 Weight | 50.1% | 44.9%Best |
| Fund Family | Scharf Funds | GMO |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Dec 30, 2011 | Nov 13, 2023 |
Not shown on this pair: 5Y Return (annualized).
Volatility and max drawdown, and the $10,000 over 1.1 years row, are measured over the window both funds cover: Aug 25, 2025 to Oct 13, 2026 (1.1 years).
KAT 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 1.1 years both funds cover.
KAT vs QLTY Performance
Scharf ETF (KAT) is an ETF from Scharf Funds and GMO US Quality ETF (QLTY) is an ETF from GMO. Over the past year KAT returned +4.87% while QLTY returned +21.58%. Year to date, KAT is up 6.65% versus a gain of 14.67% for QLTY.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KAT has been the more volatile fund, with annualized monthly volatility of 12.8% compared with 12.7% 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 -9.3% for KAT and -11.7% 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 0.53. They move together some of the time, and apart the rest.
Fees and Cost Over Time
KAT charges 0.75% per year while QLTY charges 0.50%. On a $10,000 position that is $75 vs $50 annually, a gap of $25 per year that compounds over a long holding period. On income, KAT currently yields 0.45% against 0.70% for QLTY.
Holdings Overlap
26.6% of KAT's money is in holdings QLTY also owns. 26.3% of QLTY's money is in holdings KAT also owns.
KAT and QLTY share little of their money.
7 positions in common, counted across the 33 positions we hold weights for in KAT and 44 in QLTY, against full books of 68 and 90.
What only one of them owns
Our book lists 37 positions for QLTY that do not appear in our book for KAT (73.7% of the fund), and 20 for KAT that do not appear in QLTY (59.9%).
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
| Stock | Weight in KAT | Weight in QLTY | Difference |
|---|---|---|---|
| MSFTMicrosoft Corp | 5.92% | 7.70% | 1.78% |
| METAMeta Platforms Inc | 5.51% | 4.50% | 1.01% |
| AMZNAmazon.Com Inc | 5.70% | 3.50% | 2.20% |
| VVisa Inc Class A | 4.47% | 2.90% | 1.57% |
| TMOThermo Fisherscientific Inc. | 0.81% | 4.40% | 3.59% |
| UNHUnitedhealth Group, Inc. | 1.77% | 2.50% | 0.73% |
| SYKStryker Corp 3.375 11/25 | 2.39% | 0.80% | 1.59% |
26.6% of KAT is already inside QLTY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, KAT or QLTY?
KAT has an expense ratio of 0.75% while QLTY charges 0.50%. QLTY is the cheaper option, by $25 a year on a $10,000 investment.
Which performed better, KAT or QLTY?
Over the past year KAT returned +4.87% vs +21.58% for QLTY, so QLTY leads on 1-year performance. Over the longest common window we track (1 years), KAT annualized +6.78% vs +24.26% for QLTY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, KAT or QLTY?
KAT has been the more volatile fund at 12.8% annualized versus 12.7% for QLTY. Worst drawdown: KAT -9.3% vs QLTY -11.7%.
Should I hold both KAT and QLTY?
KAT and QLTY have a monthly-return correlation of 0.53, 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 KAT and QLTY?
26.6% of KAT's money is in holdings QLTY also owns. 26.3% of QLTY's is in holdings KAT also owns. They hold 7 positions in common, counted across the 33 positions we hold weights for in KAT and 44 in QLTY.
Which pays a higher dividend, KAT or QLTY?
KAT yields 0.45% while QLTY yields 0.70%, so QLTY currently pays the higher dividend yield.
Is QLTY better than KAT?
QLTY has a lower expense ratio. QLTY led over 1Y and the full window. QLTY is less concentrated, with 44.9% of the fund in its ten largest positions against 50.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.