QUAL vs SOXX: Correlation & Overlap
How closely do iShares MSCI USA Quality Factor ETF (QUAL) and iShares Semiconductor ETF (SOXX) trade together? Their weekly returns over three years give a correlation of 0.77, which is strong. The two funds also share 15.3% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QUAL and SOXX?
On 3 years of weekly data the QUAL/SOXX correlation comes out at 0.77, strong. Lately the two have drifted apart, with the 1-year correlation at 0.65 versus 0.77 over 3 years. The 5-year figure is 0.78, and annualized covariance runs at 376.1 %².
Within QUAL's tracked universe of 106 assets, SOXX comes in at #29 by 3-year correlation. Correlation aside, the last 12 months split them widely, with SOXX ahead by 90.3 points (+19.7% versus +110.0%). Stability stands out here, with the rolling one-year correlation confined to 0.63 through 0.87. Note the risk asymmetry: SOXX runs 2.5 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.
QUAL vs SOXX: side by side
| QUAL (iShares MSCI USA Quality Factor ETF) | SOXX (iShares Semiconductor ETF) | |
|---|---|---|
| 1-year return | +19.7% | +110.0% |
| 5-year return | +68.0% | +247.5% |
| Volatility (ann.) | 14.0% | 35.2% |
| Beta vs S&P 500 | 0.93 | 1.93 |
| Max drawdown (3Y) | -18.0% | -41.4% |
| Dividend yield | 0.86% | 0.29% |
| Expense ratio | 0.15% | 0.33% |
| Assets under management | $46.5B | $44.7B |
| Sector / category | ETF · US Style | ETF · Thematic |
QUAL, iShares's Large Blend fund, carries $46.5B under management, 123 holdings, a 0.15% expense ratio, a 0.86% trailing dividend yield. On the fund side, SOXX sits in the Technology category at iShares, with $44.7B under management, 30 holdings, a 0.33% expense ratio, a 0.29% trailing dividend yield.
Portfolio overlap between QUAL and SOXX
The two portfolios partially overlap, with 5 holdings in common adding up to 15.3% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in QUAL | Weight in SOXX |
|---|---|---|
| NVDA | 6.00% | 8.87% |
| LRCX | 3.66% | 4.39% |
| AMAT | 2.88% | 4.76% |
| KLAC | 2.44% | 4.27% |
| TER | 0.34% | 3.14% |
Largest positions held only by QUAL: MSFT (7.51%), AAPL (6.62%), META (3.75%), LLY (3.72%), TJX (3.40%). Only by SOXX: MU (8.64%), AMD (8.33%), AVGO (7.11%), MRVL (5.34%), INTC (4.97%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 5 common positions shown.
Year-by-year returns
| Year | QUAL | SOXX |
|---|---|---|
| 2022 | -20.5% | -35.1% |
| 2023 | +30.9% | +67.1% |
| 2024 | +22.3% | +12.9% |
| 2025 | +12.7% | +40.7% |
| 2026 | +13.5% | +74.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QUAL and SOXX good diversifiers for each other?
To a limited degree. At 0.77 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between QUAL and SOXX?
As of 2026-08-27, the correlation of weekly returns between QUAL and SOXX is 0.77 over 3 years, 0.65 over 1 year and 0.78 over 5 years.
Is SOXX a good diversifier for QUAL?
To a limited degree. At 0.77 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do QUAL and SOXX overlap?
The two funds share 5 holdings amounting to 15.3% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qual-vs-soxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/qual-vs-soxx/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: QUAL correlations · SOXX correlations
