QUAL vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricQUALVXUSWinner
Expense Ratio0.15%0.05%
AUM$46.0B$156.5B
Dividend Yield0.86%2.60%
Holdings1308,747
YTD Return+10.34%+11.13%
1Y Return+20.03%+27.13%
3Y Return (annualized)+17.33%+17.24%
5Y Return (annualized)+11.12%+8.71%
Volatility (annualized)14.7%15.1%
Max Drawdown-34.1%-39.9%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionJul 16, 2013Jan 26, 2011

QUAL vs VXUS Performance

iShares MSCI USA Quality Factor ETF (QUAL) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year QUAL returned +20.03% while VXUS returned +27.13%. Year to date, QUAL is up 10.34% versus a gain of 11.13% for VXUS.

Over three years, QUAL compounded at +17.33% per year against +17.24% for VXUS; over five years the annualized figures are +11.12% and +8.71% respectively. Across the full 13-year window we track, QUAL has the edge at +12.54% annualized vs +4.66%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.9% for VXUS. 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 0.83. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

QUAL charges 0.15% per year while VXUS charges 0.05%. On a $10,000 position that is $15 vs $5 annually, a gap of $10 per year that compounds over a long holding period. On income, QUAL currently yields 0.86% against 2.60% for VXUS.

Holdings Overlap

0.1%overlap

QUAL and VXUS share 1 holdings out of 7986 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in QUALWeight in VXUSDifference
2345:TW0.57%0.05%0.52%

Frequently Asked Questions

Which is cheaper, QUAL or VXUS?

QUAL has an expense ratio of 0.15% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $10 per year of difference.

Which performed better, QUAL or VXUS?

Over the past year QUAL returned +20.03% vs +27.13% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (13 years), QUAL annualized +12.54% vs +4.66% for VXUS. Past performance does not guarantee future results.

Which is riskier, QUAL or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 14.7% for QUAL. Worst drawdown: QUAL -34.1% vs VXUS -39.9%.

Should I hold both QUAL and VXUS?

QUAL and VXUS have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QUAL and VXUS?

QUAL and VXUS share 1 common holdings with a 0.1% weight overlap. Combined, they hold 7986 unique securities.

Which pays a higher dividend, QUAL or VXUS?

QUAL yields 0.86% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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