EW vs QUAL: Correlation
How closely do Edwards Lifesciences (EW) and iShares MSCI USA Quality Factor ETF (QUAL) trade together? Their weekly returns over three years give a correlation of 0.39, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EW and QUAL?
Over the past 3 years, EW and QUAL moved with a correlation of 0.39, which is moderate. The relationship has been stable: the 1-year correlation (0.33) sits close to the 3-year figure. Over 5 years the correlation is 0.51, and the annualized covariance of weekly returns is 174.0 %².
Among the 30 assets we track against EW, QUAL ranks #9 by 3-year correlation. On 12-month performance QUAL holds a 8.5-point edge, +11.2% against +19.7%. On a rolling one-year basis the correlation drifted between 0.24 and 0.70, a moderate band. Note the risk asymmetry: EW runs 2.3 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
EW vs QUAL: side by side
| EW (Edwards Lifesciences) | QUAL (iShares MSCI USA Quality Factor ETF) | |
|---|---|---|
| 1-year return | +11.2% | +19.7% |
| 5-year return | -23.8% | +68.0% |
| Volatility (ann.) | 31.6% | 14.0% |
| Beta vs S&P 500 | 0.81 | 0.93 |
| Max drawdown (3Y) | -37.5% | -18.0% |
| Market cap | $51.8B | – |
| P/E (trailing) | 54.2 | – |
| Dividend yield | 0.00% | 0.86% |
| Expense ratio | – | 0.15% |
| Assets under management | – | $46.5B |
| Sector / category | Health Care | ETF · US Style |
QUAL, iShares's Large Blend fund, carries $46.5B under management, 123 holdings, a 0.15% expense ratio, a 0.86% trailing dividend yield.
Year-by-year returns
| Year | EW | QUAL |
|---|---|---|
| 2022 | -42.4% | -20.5% |
| 2023 | +2.2% | +30.9% |
| 2024 | -2.9% | +22.3% |
| 2025 | +15.2% | +12.7% |
| 2026 | +5.5% | +13.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
EW represents 0.15% of QUAL's portfolio, so part of any move in QUAL is EW itself, and the correlation between them is partly mechanical.
Are EW and QUAL good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.39 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between EW and QUAL?
Using weekly returns as of 2026-08-27: 0.39 over 3 years, with 0.33 over the last year and 0.51 over 5 years.
Is QUAL a good diversifier for EW?
Yes, to a useful degree: a correlation of 0.39 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.39 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ew-vs-qual.json
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Related comparisons
Hubs: EW correlations · QUAL correlations
