QUAL vs VYM
QUAL vs VYM
iShares MSCI USA Quality Factor ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | QUAL | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.04% | |
| AUM | $46.0B | $79.0B | |
| Dividend Yield | 0.86% | 2.86% | |
| Holdings | 130 | 568 | |
| YTD Return | +13.18% | +15.20% | |
| 1Y Return | +22.28% | +25.56% | |
| 3Y Return (annualized) | +18.80% | +17.86% | |
| 5Y Return (annualized) | +11.40% | +12.35% | |
| Volatility (annualized) | 14.7% | 14.6% | |
| Max Drawdown | -34.1% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 16, 2013 | Nov 10, 2006 |
QUAL vs VYM Performance
iShares MSCI USA Quality Factor ETF (QUAL) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year QUAL returned +22.28% while VYM returned +25.56%. Year to date, QUAL is up 13.18% versus a gain of 15.20% for VYM.
Over three years, QUAL compounded at +18.80% per year against +17.86% for VYM; over five years the annualized figures are +11.40% and +12.35% respectively. Across the full 13-year window we track, QUAL has the edge at +12.75% annualized vs +7.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QUAL has been the more volatile fund, with annualized monthly volatility of 14.7% compared with 14.6% 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 -58.8% for VYM. 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 0.89. 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 2.86% for VYM.
Holdings Overlap
QUAL and VYM share 43 holdings out of 642 unique holdings combined, representing a 15.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QUAL | Weight in VYM | Difference |
|---|---|---|---|
| XOM | 1.92% | 2.83% | 0.91% |
| JNJ | 2.09% | 2.62% | 0.53% |
| WMT | 0.98% | 2.44% | 1.46% |
| MRK | Pro | Pro | Pro |
| KO | Pro | Pro | Pro |
| LMT | Pro | Pro | Pro |
| ADP | Pro | Pro | Pro |
| GILD | Pro | Pro | Pro |
| PEP | Pro | Pro | Pro |
| MMM | Pro | Pro | Pro |
See all 10 holdings QUAL shares with VYM 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 VYM?
QUAL has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, QUAL or VYM?
Over the past year QUAL returned +22.28% vs +25.56% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), QUAL annualized +12.75% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, QUAL or VYM?
QUAL has been the more volatile fund at 14.7% annualized versus 14.6% for VYM. Worst drawdown: QUAL -34.1% vs VYM -58.8%.
Should I hold both QUAL and VYM?
QUAL and VYM have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QUAL and VYM?
QUAL and VYM share 43 common holdings with a 15.3% weight overlap. Combined, they hold 642 unique securities.
Which pays a higher dividend, QUAL or VYM?
QUAL yields 0.86% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.