QUAL vs SPY
QUAL vs SPY
iShares MSCI USA Quality Factor ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | QUAL | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.09% | |
| AUM | $46.0B | $789.1B | |
| Dividend Yield | 0.86% | 1.01% | |
| Holdings | 130 | 505 | |
| YTD Return | +13.11% | +13.50% | |
| 1Y Return | +22.17% | +23.56% | |
| 3Y Return (annualized) | +18.82% | +21.17% | |
| 5Y Return (annualized) | +11.53% | +13.46% | |
| Volatility (annualized) | 14.7% | 15.3% | |
| Max Drawdown | -34.1% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jul 16, 2013 | Jan 22, 1993 |
QUAL vs SPY Performance
iShares MSCI USA Quality Factor ETF (QUAL) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year QUAL returned +22.17% while SPY returned +23.56%. Year to date, QUAL is up 13.11% versus a gain of 13.50% for SPY.
Over three years, QUAL compounded at +18.82% per year against +21.17% for SPY; over five years the annualized figures are +11.53% and +13.46% respectively. Across the full 13-year window we track, QUAL has the edge at +12.75% annualized vs +8.85%. 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 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 -56.5% 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 0.98. 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 1.01% for SPY.
Holdings Overlap
QUAL and SPY share 116 holdings out of 514 unique holdings combined, representing a 41.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QUAL | Weight in SPY | Difference |
|---|---|---|---|
| AAPL | 6.74% | 7.09% | 0.35% |
| NVDA | 5.72% | 7.31% | 1.59% |
| MSFT | 5.97% | 4.43% | 1.54% |
| META | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| LLY | Pro | Pro | Pro |
| LRCX | Pro | Pro | Pro |
| AMAT | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| TJX | Pro | Pro | Pro |
See all 10 holdings QUAL shares with SPY Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
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. On a $10,000 investment, that is $6 per year of difference.
Which performed better, QUAL or SPY?
Over the past year QUAL returned +22.17% vs +23.56% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (13 years), QUAL annualized +12.75% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, QUAL or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.7% for QUAL. Worst drawdown: QUAL -34.1% vs SPY -56.5%.
Should I hold both QUAL and SPY?
QUAL and SPY 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 SPY?
QUAL and SPY share 116 common holdings with a 41.4% weight overlap. Combined, they hold 514 unique securities.
Which pays a higher dividend, QUAL or SPY?
QUAL yields 0.86% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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