QUAL vs USMV: Correlation & Overlap
How closely do iShares MSCI USA Quality Factor ETF (QUAL) and iShares MSCI USA Min Vol Factor ETF (USMV) trade together? Their weekly returns over three years give a correlation of 0.79, which is strong. The two funds also share 29.4% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QUAL and USMV?
On 3 years of weekly data the QUAL/USMV correlation comes out at 0.79, strong. The past 12 months show a weaker link (0.65) than the 3-year average (0.79). The 5-year figure is 0.85, and annualized covariance runs at 108.8 %².
By 3-year correlation, USMV places #27 of the 106 assets tracked against QUAL. The trailing year gives QUAL the advantage: +19.7% versus +10.1%, a 9.6-point spread. Stability stands out here, with the rolling one-year correlation confined to 0.65 through 0.89.
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 USMV: side by side
| QUAL (iShares MSCI USA Quality Factor ETF) | USMV (iShares MSCI USA Min Vol Factor ETF) | |
|---|---|---|
| 1-year return | +19.7% | +10.1% |
| 5-year return | +68.0% | +42.3% |
| Volatility (ann.) | 14.0% | 9.9% |
| Beta vs S&P 500 | 0.93 | 0.51 |
| Max drawdown (3Y) | -18.0% | -9.4% |
| Dividend yield | 0.86% | 1.48% |
| Expense ratio | 0.15% | 0.15% |
| Assets under management | $46.5B | $23.6B |
| Sector / category | ETF · US Style | 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. USMV, iShares's Large Blend fund, carries $23.6B under management, 164 holdings, a 0.15% expense ratio, a 1.48% trailing dividend yield.
Portfolio overlap between QUAL and USMV
The two portfolios partially overlap, with 59 holdings in common adding up to 29.4% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in QUAL | Weight in USMV |
|---|---|---|
| MSFT | 7.51% | 1.68% |
| JNJ | 2.13% | 1.58% |
| MRK | 1.44% | 1.54% |
| BRK.B | 1.79% | 1.41% |
| XOM | 2.18% | 1.38% |
| NVDA | 6.00% | 1.35% |
| MA | 2.34% | 1.28% |
| V | 3.26% | 1.02% |
| TJX | 3.40% | 0.94% |
| AAPL | 6.62% | 0.88% |
| KO | 0.82% | 1.28% |
| PG | 0.81% | 1.02% |
| LMT | 0.91% | 0.81% |
| LLY | 3.72% | 0.79% |
| FTNT | 1.10% | 0.76% |
Largest positions held only by QUAL: LRCX (3.66%), KLAC (2.44%), GOOGL (1.93%), ROST (1.44%), CMG (0.97%). Only by USMV: NEM (1.65%), WELL (1.57%), APH (1.54%), VZ (1.46%), CSCO (1.38%).
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 | QUAL | USMV |
|---|---|---|
| 2022 | -20.5% | -9.4% |
| 2023 | +30.9% | +10.3% |
| 2024 | +22.3% | +15.7% |
| 2025 | +12.7% | +7.6% |
| 2026 | +13.5% | +9.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QUAL and USMV good diversifiers for each other?
Somewhat, no more. With 0.79 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between QUAL and USMV?
Using weekly returns as of 2026-08-27: 0.79 over 3 years, with 0.65 over the last year and 0.85 over 5 years.
Is USMV a good diversifier for QUAL?
Somewhat, no more. With 0.79 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do QUAL and USMV overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 29.4% by weight over 59 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qual-vs-usmv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/qual-vs-usmv/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: QUAL correlations · USMV correlations
