QUAL vs VT: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI USA Quality Factor ETF (QUAL) and Vanguard Total World Stock ETF (VT) carry a correlation of 0.94, a very strong link. Looking through to holdings, 27.8% 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 QUAL and VT?
Across a 3-year window, the weekly returns of QUAL and VT correlate at 0.94, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.92 lands near the 3-year figure. Stretching to 5 years gives 0.94, with an annualized covariance of 181.1 %².
Within QUAL's tracked universe of 106 assets, VT comes in at #6 by 3-year correlation. Neither side won the trailing year by much: +19.7% against +22.7%. The link looks structural: the rolling one-year correlation barely moved, holding between 0.88 and 0.97.
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 VT: side by side
| QUAL (iShares MSCI USA Quality Factor ETF) | VT (Vanguard Total World Stock ETF) | |
|---|---|---|
| 1-year return | +19.7% | +22.7% |
| 5-year return | +68.0% | +67.7% |
| Volatility (ann.) | 14.0% | 13.9% |
| Beta vs S&P 500 | 0.93 | 0.92 |
| Max drawdown (3Y) | -18.0% | -16.5% |
| Dividend yield | 0.86% | 1.59% |
| Expense ratio | 0.15% | 0.06% |
| Assets under management | $46.5B | $97.9B |
| Sector / category | ETF · US Style | ETF · Global |
QUAL, iShares's Large Blend fund, carries $46.5B under management, 123 holdings, a 0.15% expense ratio, a 0.86% trailing dividend yield. VT is a Global Large-Stock Blend fund from Vanguard: $97.9B under management, 5308 holdings, a 0.06% expense ratio, a 1.59% trailing dividend yield.
Portfolio overlap between QUAL and VT
The two portfolios partially overlap: 27.8% of the funds' weight sits in the same underlying holdings (121 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in QUAL | Weight in VT |
|---|---|---|
| NVDA | 6.00% | 4.20% |
| AAPL | 6.62% | 4.00% |
| MSFT | 7.51% | 3.09% |
| GOOGL | 1.93% | 1.89% |
| GOOG | 1.52% | 1.49% |
| META | 3.75% | 1.10% |
| LLY | 3.72% | 0.82% |
| BRK.B | 1.79% | 0.75% |
| XOM | 2.18% | 0.58% |
| JNJ | 2.13% | 0.55% |
| V | 3.26% | 0.54% |
| WMT | 0.91% | 0.44% |
| MA | 2.34% | 0.41% |
| COST | 1.09% | 0.38% |
| AMAT | 2.88% | 0.36% |
Largest positions held only by QUAL: VMRK (0.29%), ERIE (0.02%). Only by VT: AMZN (2.36%), AVGO (1.62%), 2330 (1.61%), JPM (0.84%), MU (0.83%).
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 | VT |
|---|---|---|
| 2022 | -20.5% | -18.0% |
| 2023 | +30.9% | +22.0% |
| 2024 | +22.3% | +16.5% |
| 2025 | +12.7% | +22.4% |
| 2026 | +13.5% | +15.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QUAL and VT good diversifiers for each other?
No. With a correlation of 0.94, QUAL and VT move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between QUAL and VT?
As of 2026-08-27, the correlation of weekly returns between QUAL and VT is 0.94 over 3 years, 0.92 over 1 year and 0.94 over 5 years.
Is VT a good diversifier for QUAL?
No. With a correlation of 0.94, QUAL and VT move nearly in lockstep, so holding both adds very little diversification.
How much do QUAL and VT overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 27.8% by weight over 121 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qual-vs-vt.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/qual-vs-vt/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: QUAL correlations · VT correlations
