FXI vs QUAL: Correlation & Overlap
iShares China Large-Cap ETF (FXI) and iShares MSCI USA Quality Factor ETF (QUAL) show a moderate relationship: their 3-year correlation of weekly returns is 0.36. Looking through to holdings, 0% 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 FXI and QUAL?
On 3 years of weekly data the FXI/QUAL correlation comes out at 0.36, moderate. The past 12 months show a tighter link (0.49) than the 3-year average (0.36). The 5-year figure is 0.35, and annualized covariance runs at 128.1 %².
Among the 74 assets we track against FXI, QUAL ranks #32 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months QUAL outperformed by 25.8 percentage points (-6.1% for FXI against +19.7% for QUAL). On a rolling one-year basis the correlation drifted between 0.20 and 0.67, a moderate band. One caveat on sizing: FXI is 1.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
FXI vs QUAL: side by side
| FXI (iShares China Large-Cap ETF) | QUAL (iShares MSCI USA Quality Factor ETF) | |
|---|---|---|
| 1-year return | -6.1% | +19.7% |
| 5-year return | -1.4% | +68.0% |
| Volatility (ann.) | 25.3% | 14.0% |
| Beta vs S&P 500 | 0.68 | 0.93 |
| Max drawdown (3Y) | -23.2% | -18.0% |
| Dividend yield | 1.87% | 0.86% |
| Expense ratio | 0.73% | 0.15% |
| Assets under management | $4.3B | $46.5B |
| Sector / category | ETF · International | ETF · US Style |
FXI, iShares's Greater China Region fund, carries $4.3B under management, 50 holdings, a 0.73% expense ratio, a 1.87% 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 FXI and QUAL
The two portfolios are largely distinct. Weighing the shared positions, 0% of the two funds is identical, spread across 0 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by FXI: 9988 (9.72%), 939 (9.09%), 700 (8.51%), 1398 (6.35%), 1810 (5.16%). Only by QUAL: MSFT (7.51%), AAPL (6.62%), NVDA (6.00%), META (3.75%), LLY (3.72%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | FXI | QUAL |
|---|---|---|
| 2022 | -20.7% | -20.5% |
| 2023 | -12.4% | +30.9% |
| 2024 | +29.0% | +22.3% |
| 2025 | +28.9% | +12.7% |
| 2026 | -7.3% | +13.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FXI and QUAL good diversifiers for each other?
Reasonably. At 0.36, FXI and QUAL keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between FXI and QUAL?
As of 2026-08-27, the correlation of weekly returns between FXI and QUAL is 0.36 over 3 years, 0.49 over 1 year and 0.35 over 5 years.
Is QUAL a good diversifier for FXI?
Reasonably. At 0.36, FXI and QUAL keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do FXI and QUAL overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/fxi-vs-qual.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/fxi-vs-qual/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: FXI correlations · QUAL correlations
