QUAL vs VLTO: Correlation
iShares MSCI USA Quality Factor ETF (QUAL) and Veralto (VLTO) show a moderate relationship: their 3-year correlation of weekly returns is 0.50.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QUAL and VLTO?
Across a 3-year window, the weekly returns of QUAL and VLTO correlate at 0.50, moderate. Little has changed lately, as the 1-year reading of 0.42 lands near the 3-year figure. Stretching to 5 years gives n/a, with an annualized covariance of 149.0 %².
Among the 106 assets we track against QUAL, VLTO ranks #71 by 3-year correlation. The last year tells two different stories: QUAL led by 27.6 percentage points, +19.7% for QUAL against -7.9% for VLTO. On a rolling one-year basis the correlation drifted between 0.38 and 0.71, a moderate band. Note the risk asymmetry: VLTO runs 1.5 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 VLTO: side by side
| QUAL (iShares MSCI USA Quality Factor ETF) | VLTO (Veralto) | |
|---|---|---|
| 1-year return | +19.7% | -7.9% |
| 5-year return | +68.0% | n/a |
| Volatility (ann.) | 14.0% | 21.2% |
| Beta vs S&P 500 | 0.93 | 0.66 |
| Max drawdown (3Y) | -18.0% | -27.1% |
| Market cap | – | $24.0B |
| P/E (trailing) | – | 24.9 |
| Dividend yield | 0.86% | 0.51% |
| Expense ratio | 0.15% | – |
| Assets under management | $46.5B | – |
| Sector / category | ETF · US Style | Industrials |
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 | QUAL | VLTO |
|---|---|---|
| 2022 | -20.5% | – |
| 2023 | +30.9% | – |
| 2024 | +22.3% | +24.3% |
| 2025 | +12.7% | -1.6% |
| 2026 | +13.5% | -1.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QUAL and VLTO good diversifiers for each other?
Only partially. A correlation of 0.50 means QUAL and VLTO share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between QUAL and VLTO?
The QUAL/VLTO correlation stands at 0.50 on a 3-year window (1 year: 0.42, 5 years: n/a), computed from weekly returns as of 2026-08-27.
Is VLTO a good diversifier for QUAL?
Only partially. A correlation of 0.50 means QUAL and VLTO share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.50 mean?
A reading of 0.50 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qual-vs-vlto.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/qual-vs-vlto/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: QUAL correlations · VLTO correlations
