QLV vs SPY
FlexShares US Quality Low Volatility Index Fund vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
QLV has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | QLV | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.09% | |
| AUM | $168M | $821.1B | |
| Dividend Yield | 1.53% | 1.01% | |
| Holdings | 122 | 505 | |
| YTD Return | +12.05% | +12.22% | |
| 1Y Return | +15.30% | +20.83% | |
| 3Y Return (annualized) | +16.44% | +21.70% | |
| 5Y Return (annualized) | +10.00% | +12.98% | |
| Volatility (annualized) | 13.7% | 15.3% | |
| Max Drawdown | -34.0% | -56.5% | |
| Fund Family | Flexshares Trust | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jul 15, 2019 | Jan 22, 1993 |
QLV vs SPY Performance
FlexShares US Quality Low Volatility Index Fund (QLV) 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 QLV returned +15.30% while SPY returned +20.83%. Year to date, QLV is up 12.05% versus a gain of 12.22% for SPY.
Over three years, QLV compounded at +16.44% per year against +21.70% for SPY; over five years the annualized figures are +10.00% and +12.98% respectively. Across the full 7-year window we track, QLV has the edge at +11.54% annualized vs +8.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 13.7% for QLV. 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 -34.0% for QLV 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QLV charges 0.08% per year while SPY charges 0.09%. On a $10,000 position that is $8 vs $9 annually, a gap of $1 per year that compounds over a long holding period. On income, QLV currently yields 1.53% against 1.01% for SPY.
Holdings Overlap
QLV and SPY share 82 holdings out of 539 unique holdings combined, representing a 39.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QLV or SPY?
QLV has an expense ratio of 0.08% while SPY charges 0.09%. QLV is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, QLV or SPY?
Over the past year QLV returned +15.30% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (7 years), QLV annualized +11.54% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, QLV or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 13.7% for QLV. Worst drawdown: QLV -34.0% vs SPY -56.5%.
Should I hold both QLV and SPY?
QLV and SPY have a monthly-return correlation of 0.92, 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 QLV and SPY?
QLV and SPY share 82 common holdings with a 39.9% weight overlap. Combined, they hold 539 unique securities.
Which pays a higher dividend, QLV or SPY?
QLV yields 1.53% while SPY yields 1.01%, so QLV currently pays the higher dividend yield.
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