QUAL vs VTI
iShares MSCI USA Quality Factor ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | QUAL | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.03% | |
| AUM | $48.5B | $666.9B | |
| Dividend Yield | 0.86% | 1.07% | |
| Holdings | 130 | 3,543 | |
| YTD Return | +12.50% | +13.48% | |
| 1Y Return | +18.79% | +19.90% | |
| 3Y Return (annualized) | +18.39% | +20.94% | |
| 5Y Return (annualized) | +10.82% | +11.75% | |
| Volatility (annualized) | 14.7% | 15.3% | |
| Max Drawdown | -34.1% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 16, 2013 | May 24, 2001 |
QUAL vs VTI Performance
iShares MSCI USA Quality Factor ETF (QUAL) is a ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year QUAL returned +18.79% while VTI returned +19.90%. Year to date, QUAL is up 12.50% versus a gain of 13.48% for VTI.
Over three years, QUAL compounded at +18.39% per year against +20.94% for VTI; over five years the annualized figures are +10.82% and +11.75% respectively. Across the full 13-year window we track, QUAL has the edge at +12.63% annualized vs +8.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.7% 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 -56.6% for VTI. 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 0.98. 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 1.07% for VTI.
Holdings Overlap
QUAL and VTI share 118 holdings out of 2796 unique holdings combined, representing a 38.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $12 per year of difference.
Which performed better, QUAL or VTI?
Over the past year QUAL returned +18.79% vs +19.90% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (13 years), QUAL annualized +12.63% vs +8.10% for VTI. Past performance does not guarantee future results.
Which is riskier, QUAL or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 14.7% for QUAL. Worst drawdown: QUAL -34.1% vs VTI -56.6%.
Should I hold both QUAL and VTI?
QUAL and VTI have a monthly-return correlation of 0.98, 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 QUAL and VTI?
QUAL and VTI share 118 common holdings with a 38.1% weight overlap. Combined, they hold 2796 unique securities.
Which pays a higher dividend, QUAL or VTI?
QUAL yields 0.86% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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