QUAL vs VYM
iShares MSCI USA Quality Factor ETF vs Vanguard High Dividend Yield ETF
Which is better, QUAL or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. QUAL led over 3Y and the full window, VYM over 1Y and 5Y. VYM is less concentrated, with 26.1% 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 | VYM |
|---|---|---|
| Expense Ratio | 0.15% | 0.04%Best |
| AUM | $47.3B | $81.6B |
| Dividend Yield | 0.86% | 2.22% |
| Holdings | 130 | 613 |
| YTD Return | +10.27% | +11.35%Best |
| 1Y Return | +14.74% | +15.34%Best |
| 3Y Return (annualized) | +18.35%Best | +17.22% |
| 5Y Return (annualized) | +11.46% | +12.30%Best |
| Volatility (annualized) | 14.6% | 13.4%Best |
| Max Drawdown | -34.1%Best | -35.7% |
| $10,000 over 5 years | $17,203 | $17,861Best |
| Top 10 Weight | 43.6% | 26.1%Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Jul 16, 2013 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Jul 18, 2013 to Sep 18, 2026 (13.2 years).
QUAL vs VYM 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 VYM Performance
iShares MSCI USA Quality Factor ETF (QUAL) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year QUAL returned +14.74% while VYM returned +15.34%. Year to date, QUAL is up 10.27% versus a gain of 11.35% for VYM.
Over three years, QUAL compounded at +18.35% per year against +17.22% for VYM; over five years the annualized figures are +11.46% and +12.30% respectively. Across the full 13-year window we track, QUAL has the edge at +12.40% annualized vs +9.14%.
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 13.4% for VYM. 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 -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QUAL charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, QUAL currently yields 0.86% against 2.22% for VYM.
Holdings Overlap
22.6% of QUAL's money is in holdings VYM also owns. 20.0% of VYM's money is in holdings QUAL also owns.
QUAL and VYM share little of their money.
46 positions in common, counted across the 119 positions we hold weights for in QUAL and 557 in VYM, against full books of 130 and 613.
What only one of them owns
Our book lists 482 positions for VYM that do not appear in our book for QUAL (77.0% of the fund), and 72 for QUAL that do not appear in VYM (77.2%).
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 VYM | Difference |
|---|---|---|---|
| XOMExxon Mobil Corp. | 2.24% | 2.63% | 0.39% |
| JNJJohnson & Johnson - Common | 2.12% | 2.51% | 0.39% |
| MRKMerck & Company Inc | 1.40% | 1.31% | 0.09% |
| KOCoca Cola Co. | 0.81% | 1.38% | 0.57% |
| PGProcter & Gamble Company | 0.81% | 1.37% | 0.56% |
| LINLinde Plc Ordinary Shares | 1.03% | 0.90% | 0.13% |
| ADPAutomatic Data Processing, Inc. | 1.26% | 0.43% | 0.83% |
| LMTLockheed Martin Corp | 0.91% | 0.48% | 0.43% |
| GILDGilead Sciences | 0.68% | 0.66% | 0.02% |
| MMM3M Company | 0.90% | 0.37% | 0.53% |
22.6% of QUAL is already inside VYM.
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 VYM?
QUAL has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option, by $11 a year on a $10,000 investment.
Which performed better, QUAL or VYM?
Over the past year QUAL returned +14.74% vs +15.34% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), QUAL annualized +12.40% vs +9.14% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QUAL or VYM?
QUAL has been the more volatile fund at 14.6% annualized versus 13.4% for VYM. Worst drawdown: QUAL -34.1% vs VYM -35.7%.
Should I hold both QUAL and VYM?
QUAL and VYM have a monthly-return correlation of 0.89, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QUAL and VYM?
22.6% of QUAL's money is in holdings VYM also owns. 20.0% of VYM's is in holdings QUAL also owns. They hold 46 positions in common, counted across the 119 positions we hold weights for in QUAL and 557 in VYM.
Which pays a higher dividend, QUAL or VYM?
QUAL yields 0.86% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than QUAL?
VYM has a lower expense ratio. QUAL led over 3Y and the full window, VYM over 1Y and 5Y. VYM is less concentrated, with 26.1% 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.