ACWI vs QUAL: Correlation & Overlap
iShares MSCI ACWI ETF (ACWI) and iShares MSCI USA Quality Factor ETF (QUAL) show a very strong relationship: their 3-year correlation of weekly returns is 0.94. Looking through to holdings, 30.1% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and QUAL?
On 3 years of weekly data the ACWI/QUAL correlation comes out at 0.94, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.92) sits close to the 3-year figure. The 5-year figure is 0.95, and annualized covariance runs at 180.7 %².
Among the 119 assets we track against ACWI, QUAL ranks #6 by 3-year correlation. Their 12-month results are close: +22.7% for ACWI against +19.7% for QUAL. The link looks structural: the rolling one-year correlation barely moved, holding between 0.90 and 0.97.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ACWI vs QUAL: side by side
| ACWI (iShares MSCI ACWI ETF) | QUAL (iShares MSCI USA Quality Factor ETF) | |
|---|---|---|
| 1-year return | +22.7% | +19.7% |
| 5-year return | +69.0% | +68.0% |
| Volatility (ann.) | 13.8% | 14.0% |
| Beta vs S&P 500 | 0.92 | 0.93 |
| Max drawdown (3Y) | -16.5% | -18.0% |
| Dividend yield | 1.44% | 0.86% |
| Expense ratio | 0.32% | 0.15% |
| Assets under management | $32.5B | $46.5B |
| Sector / category | ETF · Global | ETF · US Style |
On the fund side, ACWI sits in the Global Large-Stock Blend category at iShares, with $32.5B under management, 1590 holdings, a 0.32% expense ratio, a 1.44% trailing dividend yield. QUAL, iShares's Large Blend fund, carries $46.5B under management, 123 holdings, a 0.15% expense ratio, a 0.86% trailing dividend yield.
Portfolio overlap between ACWI and QUAL
The two portfolios partially overlap: 30.1% of the funds' weight sits in the same underlying holdings (123 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in ACWI | Weight in QUAL |
|---|---|---|
| NVDA | 4.64% | 6.00% |
| AAPL | 4.41% | 6.62% |
| MSFT | 3.35% | 7.51% |
| GOOGL | 1.91% | 1.93% |
| GOOG | 1.50% | 1.52% |
| META | 1.21% | 3.75% |
| LLY | 0.91% | 3.72% |
| BRK.B | 0.67% | 1.79% |
| XOM | 0.63% | 2.18% |
| V | 0.62% | 3.26% |
| JNJ | 0.62% | 2.13% |
| MA | 0.47% | 2.34% |
| WMT | 0.44% | 0.91% |
| COST | 0.41% | 1.09% |
| MRK | 0.38% | 1.44% |
Largest positions held only by ACWI: AMZN (2.41%), 2330 (1.79%), AVGO (1.53%), MU (1.01%), TSLA (0.93%). Only by QUAL: .
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | ACWI | QUAL |
|---|---|---|
| 2022 | -18.4% | -20.5% |
| 2023 | +22.3% | +30.9% |
| 2024 | +17.4% | +22.3% |
| 2025 | +22.4% | +12.7% |
| 2026 | +14.9% | +13.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and QUAL good diversifiers for each other?
No: a correlation of 0.94 means ACWI and QUAL tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between ACWI and QUAL?
The ACWI/QUAL correlation stands at 0.94 on a 3-year window (1 year: 0.92, 5 years: 0.95), computed from weekly returns as of 2026-08-27.
Is QUAL a good diversifier for ACWI?
No: a correlation of 0.94 means ACWI and QUAL tend to fall together, which is precisely when diversification is supposed to help.
How much do ACWI and QUAL overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 30.1% by weight over 123 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/acwi-vs-qual.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/acwi-vs-qual/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ACWI correlations · QUAL correlations
