QLC vs SPY
FlexShares US Quality Large Cap Index Fund vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. QLC delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | QLC | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.09% | |
| AUM | $1.0B | $789.1B | |
| Dividend Yield | 0.94% | 1.01% | |
| Holdings | 178 | 505 | |
| YTD Return | +14.80% | +13.75% | |
| 1Y Return | +27.92% | +22.91% | |
| 3Y Return (annualized) | +24.61% | +21.67% | |
| 5Y Return (annualized) | +14.80% | +13.32% | |
| Volatility (annualized) | 16.5% | 15.3% | |
| Max Drawdown | -35.9% | -56.5% | |
| Fund Family | Flexshares Trust | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 23, 2015 | Jan 22, 1993 |
QLC vs SPY Performance
FlexShares US Quality Large Cap Index Fund (QLC) is a ETF from Flexshares Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year QLC returned +27.92% while SPY returned +22.91%. Year to date, QLC is up 14.80% versus a gain of 13.75% for SPY.
Over three years, QLC compounded at +24.61% per year against +21.67% for SPY; over five years the annualized figures are +14.80% and +13.32% respectively. Across the full 11-year window we track, QLC has the edge at +14.52% annualized vs +8.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QLC has been the more volatile fund, with annualized monthly volatility of 16.5% compared with 15.3% for SPY. 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 -35.9% for QLC and -56.5% for SPY. 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QLC charges 0.25% per year while SPY charges 0.09%. On a $10,000 position that is $25 vs $9 annually, a gap of $16 per year that compounds over a long holding period. On income, QLC currently yields 0.94% against 1.01% for SPY.
Holdings Overlap
QLC and SPY share 156 holdings out of 522 unique holdings combined, representing a 57.0% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, QLC or SPY?
QLC has an expense ratio of 0.25% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, QLC or SPY?
Over the past year QLC returned +27.92% vs +22.91% for SPY, so QLC leads on 1-year performance. Over the longest common window we track (11 years), QLC annualized +14.52% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, QLC or SPY?
QLC has been the more volatile fund at 16.5% annualized versus 15.3% for SPY. Worst drawdown: QLC -35.9% vs SPY -56.5%.
Should I hold both QLC and SPY?
QLC and SPY have a monthly-return correlation of 0.93, 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 QLC and SPY?
QLC and SPY share 156 common holdings with a 57.0% weight overlap. Combined, they hold 522 unique securities.
Which pays a higher dividend, QLC or SPY?
QLC yields 0.94% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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