QLTY vs SCHX
GMO US Quality ETF vs Schwab US Large-Cap ETF
Which is better, QLTY or SCHX?
Each has led over a different period.
SCHX has a lower expense ratio. QLTY led over 1Y and the full window, SCHX over 3Y. The two have moved almost in lockstep, correlation 0.93. SCHX is less concentrated, with 36.9% of the fund in its ten largest positions against 45.5%.
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 | QLTY | SCHX |
|---|---|---|
| Expense Ratio | 0.50% | 0.03%Best |
| AUM | $5.4B | $75.3B |
| Dividend Yield | 0.66% | 1.04% |
| Holdings | 90 | 752 |
| YTD Return | +14.13%Best | +13.08% |
| 1Y Return | +20.95%Best | +16.62% |
| 3Y Return (annualized) | +21.84% | +22.27%Best |
| 5Y Return (annualized) | - | +12.56% |
| Volatility (annualized) | 11.9% | 11.7%Best |
| Max Drawdown | -17.0%Best | -19.0% |
| $10,000 over 2.9 years | $17,733Best | $17,670 |
| Top 10 Weight | 45.5% | 36.9%Best |
| Fund Family | GMO | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Nov 13, 2023 | Nov 3, 2009 |
Volatility and max drawdown, and the $10,000 over 2.9 years row, are measured over the window both funds cover: Nov 15, 2023 to Oct 14, 2026 (2.9 years).
QLTY vs SCHX 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 2.9 years both funds cover.
QLTY vs SCHX Performance
GMO US Quality ETF (QLTY) is an ETF from GMO and Schwab US Large-Cap ETF (SCHX) is an ETF from Charles Schwab Asset Management. Over the past year QLTY returned +20.95% while SCHX returned +16.62%. Year to date, QLTY is up 14.13% versus a gain of 13.08% for SCHX.
Over three years, QLTY compounded at +21.84% per year against +22.27% for SCHX.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QLTY has been the more volatile fund, with annualized monthly volatility of 11.9% compared with 11.7% for SCHX. 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 -17.0% for QLTY and -19.0% for SCHX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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
QLTY charges 0.50% per year while SCHX charges 0.03%. On a $10,000 position that is $50 vs $3 annually, a gap of $47 per year that compounds over a long holding period. On income, QLTY currently yields 0.66% against 1.04% for SCHX.
Holdings Overlap
97.7% of QLTY's money is in holdings SCHX also owns. 42.5% of SCHX's money is in holdings QLTY also owns.
Most of QLTY is already inside SCHX. Owning both mostly buys the same companies twice.
43 positions in common, counted across the 45 positions we hold weights for in QLTY and 752 in SCHX, against full books of 90 and 752.
What only one of them owns
Our book lists 686 positions for SCHX that do not appear in our book for QLTY (56.7% of the fund), and 2 for QLTY that do not appear in SCHX (2.0%).
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 QLTY | Weight in SCHX | Difference |
|---|---|---|---|
| MSFTMicrosoft Corp | 8.00% | 5.44% | 2.56% |
| NVDANvidia Corp | 3.30% | 8.02% | 4.72% |
| AAPLApple, Inc | 4.20% | 6.90% | 2.70% |
| GOOGLAlphabet Inc | 4.90% | 2.86% | 2.04% |
| METAMeta Platforms Inc | 4.80% | 2.28% | 2.52% |
| AMZNAmazon.Com Inc | 3.50% | 3.50% | 0.00% |
| AVGOBroadcom Inc | 3.70% | 2.40% | 1.30% |
| JNJJohnson & Johnson - Common | 4.10% | 0.87% | 3.23% |
| LRCXLam Research Corp | 4.20% | 0.62% | 3.58% |
| TMOThermo Fisherscientific Inc. | 4.30% | 0.34% | 3.96% |
97.7% of QLTY is already inside SCHX.
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, QLTY or SCHX?
QLTY has an expense ratio of 0.50% while SCHX charges 0.03%. SCHX is the cheaper option, by $47 a year on a $10,000 investment.
Which performed better, QLTY or SCHX?
Over the past year QLTY returned +20.95% vs +16.62% for SCHX, so QLTY leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QLTY or SCHX?
QLTY has been the more volatile fund at 11.9% annualized versus 11.7% for SCHX. Worst drawdown: QLTY -17.0% vs SCHX -19.0%.
Should I hold both QLTY and SCHX?
QLTY and SCHX have a monthly-return correlation of 0.93, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between QLTY and SCHX?
97.7% of QLTY's money is in holdings SCHX also owns. 42.5% of SCHX's is in holdings QLTY also owns. They hold 43 positions in common, counted across the 45 positions we hold weights for in QLTY and 752 in SCHX.
Which pays a higher dividend, QLTY or SCHX?
QLTY yields 0.66% while SCHX yields 1.04%, so SCHX currently pays the higher dividend yield.
Is SCHX better than QLTY?
SCHX has a lower expense ratio. QLTY led over 1Y and the full window, SCHX over 3Y. The two have moved almost in lockstep, correlation 0.93. SCHX is less concentrated, with 36.9% 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.