QLTY vs SPY

QLTY vs SPY

Which is better, QLTY or SPY?

Each has led over a different period.

SPY has a lower expense ratio. QLTY led over 1Y, SPY over the full window. The two have moved almost in lockstep, correlation 0.94. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 44.3%.

Lower Fees: SPYHigher Returns: splitLess Concentrated: SPY

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

MetricQLTYSPY
Expense Ratio0.50%0.09%Best
AUM$5.2B$804.7B
Dividend Yield0.70%0.98%
Holdings45505
YTD Return+10.41%+12.09%Best
1Y Return+18.33%Best+16.29%
3Y Return (annualized)-+21.20%
5Y Return (annualized)-+13.37%
Volatility (annualized)12.1%11.8%Best
Max Drawdown-17.0%Best-18.8%
$10,000 over 2.8 years$17,065$17,374Best
Top 10 Weight44.3%37.8%Best
Fund FamilyGMOState Street Investment Management
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionNov 13, 2023Jan 22, 1993

Volatility and max drawdown, and the $10,000 over 2.8 years row, are measured over the window both funds cover: Nov 15, 2023 to Sep 18, 2026 (2.8 years).

QLTY vs SPY 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 2.8 years both funds cover.

QLTY vs SPY Performance

GMO US Quality ETF (QLTY) is an ETF from GMO and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year QLTY returned +18.33% while SPY returned +16.29%. Year to date, QLTY is up 10.41% versus a gain of 12.09% for SPY.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QLTY has been the more volatile fund, with annualized monthly volatility of 12.1% compared with 11.8% 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 -17.0% for QLTY and -18.8% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.94. 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 SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, QLTY currently yields 0.70% against 0.98% for SPY.

Holdings Overlap

QLTY already in SPY94.3%
SPY already in QLTY43.9%

94.3% of QLTY's money is in holdings SPY also owns. 43.9% of SPY's money is in holdings QLTY also owns.

Most of QLTY is already inside SPY. Owning both mostly buys the same companies twice.

40 positions in common, counted across the 44 positions we hold weights for in QLTY and 504 in SPY, against full books of 45 and 505.

What only one of them owns

Measured across the 44 and 504 positions we hold weights for.

SPY holds 457 positions QLTY does not, 55.4% of the fund.

Largest: GOOG 2.39%, MU 1.60%, TSLA 1.52%, JPM 1.45%, BRK.B 1.40%

Top Shared Holdings

StockWeight in QLTYWeight in SPYDifference
MSFTMicrosoft Corp7.70%5.66%2.04%
AAPLApple, Inc4.60%7.26%2.66%
NVDANvidia Corp2.70%8.01%5.31%
GOOGLAlphabet Inc,class A4.80%2.99%1.81%
AMZNAmazon.Com Inc3.60%3.79%0.19%
AVGOBroadcom Inc3.60%2.66%0.94%
METAMeta Platforms Inc4.10%1.93%2.17%
JNJJohnson & Johnson - Common4.50%0.99%3.51%
LRCXLam Research Corp3.90%0.55%3.35%
TMOThermo Fisherscientific Inc.4.10%0.34%3.76%

94.3% of QLTY is already inside SPY.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

QLTYSPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, QLTY or SPY?

QLTY has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option, by $41 a year on a $10,000 investment.

Which performed better, QLTY or SPY?

Over the past year QLTY returned +18.33% vs +16.29% for SPY, 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 SPY?

QLTY has been the more volatile fund at 12.1% annualized versus 11.8% for SPY. Worst drawdown: QLTY -17.0% vs SPY -18.8%.

Should I hold both QLTY and SPY?

QLTY and SPY have a monthly-return correlation of 0.94, 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 SPY?

94.3% of QLTY's money is in holdings SPY also owns. 43.9% of SPY's is in holdings QLTY also owns. They hold 40 positions in common, counted across the 44 positions we hold weights for in QLTY and 504 in SPY.

Which pays a higher dividend, QLTY or SPY?

QLTY yields 0.70% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.

Is SPY better than QLTY?

SPY has a lower expense ratio. QLTY led over 1Y, SPY over the full window. The two have moved almost in lockstep, correlation 0.94. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 44.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.