QUAL vs VTI
iShares MSCI USA Quality Factor ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, QUAL or VTI?
Nearly the same fund. VTI costs less.
VTI has a lower expense ratio. QUAL led over the full window, VTI over 1Y, 3Y and 5Y. The two have moved almost in lockstep, correlation 0.98. VTI is less concentrated, with 33.3% 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 | VTI |
|---|---|---|
| Expense Ratio | 0.15% | 0.03%Best |
| AUM | $47.3B | $666.9B |
| Dividend Yield | 0.86% | 1.03% |
| Holdings | 130 | 3,543 |
| YTD Return | +10.27% | +12.30%Best |
| 1Y Return | +14.74% | +16.08%Best |
| 3Y Return (annualized) | +18.35% | +21.01%Best |
| 5Y Return (annualized) | +11.46% | +12.36%Best |
| Volatility (annualized) | 14.6%Best | 14.8% |
| Max Drawdown | -34.1%Best | -35.0% |
| $10,000 over 5 years | $17,203 | $17,908Best |
| Top 10 Weight | 43.6% | 33.3%Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jul 16, 2013 | May 24, 2001 |
Volatility and max drawdown are measured over the window both funds cover: Jul 18, 2013 to Sep 18, 2026 (13.2 years).
QUAL vs VTI 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 VTI Performance
iShares MSCI USA Quality Factor ETF (QUAL) is an ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year QUAL returned +14.74% while VTI returned +16.08%. Year to date, QUAL is up 10.27% versus a gain of 12.30% for VTI.
Over three years, QUAL compounded at +18.35% per year against +21.01% for VTI; over five years the annualized figures are +11.46% and +12.36% respectively. Across the full 13-year window we track, QUAL has the edge at +12.40% annualized vs +12.35%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 14.8% compared with 14.6% for QUAL. 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 -35.0% for VTI. 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 VTI charges 0.03%. On a $10,000 position that is $15 vs $3 annually, a gap of $12 per year that compounds over a long holding period. On income, QUAL currently yields 0.86% against 1.03% for VTI.
Holdings Overlap
99.8% of QUAL's money is in holdings VTI also owns. 43.0% of VTI's money is in holdings QUAL also owns.
Most of QUAL is already inside VTI. Owning both mostly buys the same companies twice.
118 positions in common, counted across the 119 positions we hold weights for in QUAL and 3,463 in VTI, against full books of 130 and 3,543.
What only one of them owns
Our book lists 1,033 positions for VTI that do not appear in our book for QUAL (54.5% of the fund), and 1 for QUAL that do not appear in VTI (0.1%).
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 VTI | Difference |
|---|---|---|---|
| AAPLApple, Inc | 6.76% | 6.29% | 0.47% |
| NVDANvidia Corp | 6.39% | 6.40% | 0.01% |
| MSFTMicrosoft Corp | 7.75% | 4.79% | 2.96% |
| METAMeta Platforms Inc | 3.76% | 1.70% | 2.06% |
| LLYEli Lilly & Co. | 3.66% | 1.35% | 2.31% |
| GOOGLAlphabet Inc,class A | 1.94% | 2.90% | 0.96% |
| VVisa Inc Class A | 3.25% | 0.83% | 2.42% |
| LRCXLam Research Corp | 3.56% | 0.51% | 3.05% |
| GOOGAlphabet Inc | 1.52% | 2.31% | 0.79% |
| TJXTjx Cos Inc | 3.36% | 0.24% | 3.12% |
99.8% of QUAL is already inside VTI.
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 VTI?
QUAL has an expense ratio of 0.15% while VTI charges 0.03%. VTI is the cheaper option, by $12 a year on a $10,000 investment.
Which performed better, QUAL or VTI?
Over the past year QUAL returned +14.74% vs +16.08% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (13 years), QUAL annualized +12.40% vs +12.35% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QUAL or VTI?
VTI has been the more volatile fund at 14.8% annualized versus 14.6% for QUAL. Worst drawdown: QUAL -34.1% vs VTI -35.0%.
Should I hold both QUAL and VTI?
QUAL and VTI 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 VTI?
99.8% of QUAL's money is in holdings VTI also owns. 43.0% of VTI's is in holdings QUAL also owns. They hold 118 positions in common, counted across the 119 positions we hold weights for in QUAL and 3,463 in VTI.
Which pays a higher dividend, QUAL or VTI?
QUAL yields 0.86% while VTI yields 1.03%, so VTI currently pays the higher dividend yield.
Is VTI better than QUAL?
VTI has a lower expense ratio. QUAL led over the full window, VTI over 1Y, 3Y and 5Y. The two have moved almost in lockstep, correlation 0.98. VTI is less concentrated, with 33.3% 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.