QUAL vs SPY
iShares MSCI USA Quality Factor ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, QUAL or SPY?
Nearly the same fund. SPY costs less.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.98. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 43.6%.
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 | QUAL | SPY |
|---|---|---|
| Expense Ratio | 0.15% | 0.09%Best |
| AUM | $47.3B | $804.7B |
| Dividend Yield | 0.86% | 0.98% |
| Holdings | 130 | 505 |
| YTD Return | +10.27% | +12.09%Best |
| 1Y Return | +14.74% | +16.29%Best |
| 3Y Return (annualized) | +18.35% | +21.20%Best |
| 5Y Return (annualized) | +11.46% | +13.37%Best |
| Volatility (annualized) | 14.6% | 14.5%Best |
| Max Drawdown | -34.1%Tie | -34.1%Tie |
| $10,000 over 5 years | $17,203 | $18,728Best |
| Top 10 Weight | 43.6% | 37.8%Best |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jul 16, 2013 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Jul 18, 2013 to Sep 18, 2026 (13.2 years).
QUAL 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 13.2 years both funds cover.
QUAL vs SPY Performance
iShares MSCI USA Quality Factor ETF (QUAL) is an ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year QUAL returned +14.74% while SPY returned +16.29%. Year to date, QUAL is up 10.27% versus a gain of 12.09% for SPY.
Over three years, QUAL compounded at +18.35% per year against +21.20% for SPY; over five years the annualized figures are +11.46% and +13.37% respectively. Across the full 13-year window we track, SPY has the edge at +12.75% annualized vs +12.40%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QUAL has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 14.5% 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 -34.1% for QUAL and -34.1% 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 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QUAL charges 0.15% per year while SPY charges 0.09%. On a $10,000 position that is $15 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, QUAL currently yields 0.86% against 0.98% for SPY.
Holdings Overlap
98.8% of QUAL's money is in holdings SPY also owns. 48.6% of SPY's money is in holdings QUAL also owns.
Most of QUAL is already inside SPY. Owning both mostly buys the same companies twice.
113 positions in common, counted across the 119 positions we hold weights for in QUAL and 504 in SPY, against full books of 130 and 505.
What only one of them owns
Our book lists 385 positions for SPY that do not appear in our book for QUAL (50.8% of the fund), and 6 for QUAL that do not appear in SPY (1.2%).
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 QUAL | Weight in SPY | Difference |
|---|---|---|---|
| NVDANvidia Corp | 6.39% | 8.01% | 1.62% |
| AAPLApple, Inc | 6.76% | 7.26% | 0.50% |
| MSFTMicrosoft Corp | 7.75% | 5.66% | 2.09% |
| METAMeta Platforms Inc | 3.76% | 1.93% | 1.83% |
| LLYEli Lilly & Co. | 3.66% | 1.40% | 2.26% |
| GOOGLAlphabet Inc,class A | 1.94% | 2.99% | 1.05% |
| VVisa Inc Class A | 3.25% | 0.94% | 2.31% |
| LRCXLam Research Corp | 3.56% | 0.55% | 3.01% |
| GOOGAlphabet Inc | 1.52% | 2.39% | 0.87% |
| TJXTjx Cos Inc | 3.36% | 0.22% | 3.14% |
98.8% of QUAL 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.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QUAL or SPY?
QUAL has an expense ratio of 0.15% while SPY charges 0.09%. SPY is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, QUAL or SPY?
Over the past year QUAL returned +14.74% vs +16.29% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (13 years), QUAL annualized +12.40% vs +12.75% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QUAL or SPY?
QUAL has been the more volatile fund at 14.6% annualized versus 14.5% for SPY. Worst drawdown: QUAL -34.1% vs SPY -34.1%.
Should I hold both QUAL and SPY?
QUAL and SPY have a monthly-return correlation of 0.98, 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 QUAL and SPY?
98.8% of QUAL's money is in holdings SPY also owns. 48.6% of SPY's is in holdings QUAL also owns. They hold 113 positions in common, counted across the 119 positions we hold weights for in QUAL and 504 in SPY.
Which pays a higher dividend, QUAL or SPY?
QUAL yields 0.86% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.
Is SPY better than QUAL?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.98. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 43.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.