QUAL vs VOO: Correlation & Overlap
How closely do iShares MSCI USA Quality Factor ETF (QUAL) and Vanguard S&P 500 ETF (VOO) trade together? Their weekly returns over three years give a correlation of 0.97, which is very strong. By holdings, the two funds overlap 44.1% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QUAL and VOO?
Over the past 3 years, QUAL and VOO moved with a correlation of 0.97, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.93 over 1 year against 0.97 over 3. Over 5 years the correlation is 0.98, and the annualized covariance of weekly returns is 194.3 %².
VOO is one of the assets that tracks QUAL most closely: it ranks #3 out of the 106 assets we track against QUAL. Their 12-month results are close: +19.7% for QUAL against +20.6% for VOO. The link looks structural: the rolling one-year correlation barely moved, holding between 0.93 and 0.99.
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 VOO: side by side
| QUAL (iShares MSCI USA Quality Factor ETF) | VOO (Vanguard S&P 500 ETF) | |
|---|---|---|
| 1-year return | +19.7% | +20.6% |
| 5-year return | +68.0% | +83.0% |
| Volatility (ann.) | 14.0% | 14.4% |
| Beta vs S&P 500 | 0.93 | 0.99 |
| Max drawdown (3Y) | -18.0% | -18.7% |
| Dividend yield | 0.86% | 1.07% |
| Expense ratio | 0.15% | 0.03% |
| Assets under management | $46.5B | $1,686.9B |
| Sector / category | ETF · US Style | ETF · US Large Cap |
QUAL, iShares's Large Blend fund, carries $46.5B under management, 123 holdings, a 0.15% expense ratio, a 0.86% trailing dividend yield. VOO, Vanguard's Large Blend fund, carries $1,686.9B under management, 503 holdings, a 0.03% expense ratio, a 1.07% trailing dividend yield.
Portfolio overlap between QUAL and VOO
The two portfolios overlap heavily, with 116 holdings in common adding up to 44.1% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in QUAL | Weight in VOO |
|---|---|---|
| AAPL | 6.62% | 7.05% |
| NVDA | 6.00% | 7.56% |
| MSFT | 7.51% | 5.37% |
| GOOGL | 1.93% | 3.25% |
| META | 3.75% | 1.90% |
| GOOG | 1.52% | 2.62% |
| BRK.B | 1.79% | 1.46% |
| LLY | 3.72% | 1.41% |
| XOM | 2.18% | 1.00% |
| JNJ | 2.13% | 0.96% |
| V | 3.26% | 0.93% |
| WMT | 0.91% | 0.76% |
| MA | 2.34% | 0.72% |
| COST | 1.09% | 0.66% |
| AMAT | 2.88% | 0.63% |
Largest positions held only by QUAL: VMRK (0.29%), CDE (0.12%), FN (0.09%), GGG (0.09%), UTHR (0.07%). Only by VOO: AMZN (4.13%), AVGO (2.87%), JPM (1.47%), MU (1.44%), TSLA (1.36%).
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 | VOO |
|---|---|---|
| 2022 | -20.5% | -18.2% |
| 2023 | +30.9% | +26.3% |
| 2024 | +22.3% | +25.0% |
| 2025 | +12.7% | +17.8% |
| 2026 | +13.5% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QUAL and VOO good diversifiers for each other?
No: a correlation of 0.97 means QUAL and VOO tend to fall together, which is precisely when diversification is supposed to help. On top of that, 44.1% of their holdings are the same, making the doubling-up even more literal.
FAQ
What is the correlation between QUAL and VOO?
The QUAL/VOO correlation stands at 0.97 on a 3-year window (1 year: 0.93, 5 years: 0.98), computed from weekly returns as of 2026-08-27.
Is VOO a good diversifier for QUAL?
No: a correlation of 0.97 means QUAL and VOO tend to fall together, which is precisely when diversification is supposed to help. On top of that, 44.1% of their holdings are the same, making the doubling-up even more literal.
How much do QUAL and VOO overlap?
The two funds share 116 holdings amounting to 44.1% of weight, per issuer portfolio files dated 2026-08-26.
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Related comparisons
Hubs: QUAL correlations · VOO correlations
