QUAL vs VTI: Correlation & Overlap
How closely do iShares MSCI USA Quality Factor ETF (QUAL) and Vanguard Total Stock Market ETF (VTI) trade together? Their weekly returns over three years give a correlation of 0.97, which is very strong. Looking through to holdings, 41.0% 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 VTI?
On 3 years of weekly data the QUAL/VTI correlation comes out at 0.97, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.94) sits close to the 3-year figure. The 5-year figure is 0.97, and annualized covariance runs at 197.1 %².
Among the 106 assets we track against QUAL, VTI ranks #4 by 3-year correlation. Neither side won the trailing year by much: +19.7% against +20.7%. The link looks structural: the rolling one-year correlation barely moved, holding between 0.94 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 VTI: side by side
| QUAL (iShares MSCI USA Quality Factor ETF) | VTI (Vanguard Total Stock Market ETF) | |
|---|---|---|
| 1-year return | +19.7% | +20.7% |
| 5-year return | +68.0% | +74.8% |
| Volatility (ann.) | 14.0% | 14.6% |
| Beta vs S&P 500 | 0.93 | 1.01 |
| Max drawdown (3Y) | -18.0% | -19.3% |
| Dividend yield | 0.86% | 1.06% |
| Expense ratio | 0.15% | 0.03% |
| Assets under management | $46.5B | $2,290.0B |
| Sector / category | ETF · US Style | ETF · US Large Cap |
On the fund side, QUAL sits in the Large Blend category at iShares, with $46.5B under management, 123 holdings, a 0.15% expense ratio, a 0.86% trailing dividend yield. VTI, Vanguard's Large Blend fund, carries $2,290.0B under management, 3140 holdings, a 0.03% expense ratio, a 1.06% trailing dividend yield.
Portfolio overlap between QUAL and VTI
The two portfolios overlap heavily: 41.0% of the funds' weight sits in the same underlying holdings (122 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in QUAL | Weight in VTI |
|---|---|---|
| AAPL | 6.62% | 6.31% |
| NVDA | 6.00% | 6.42% |
| MSFT | 7.51% | 4.80% |
| GOOGL | 1.93% | 2.91% |
| META | 3.75% | 1.70% |
| GOOG | 1.52% | 2.32% |
| LLY | 3.72% | 1.36% |
| BRK.B | 1.79% | 1.28% |
| XOM | 2.18% | 0.90% |
| JNJ | 2.13% | 0.86% |
| V | 3.26% | 0.83% |
| WMT | 0.91% | 0.68% |
| MA | 2.34% | 0.63% |
| COST | 1.09% | 0.59% |
| AMAT | 2.88% | 0.56% |
Largest positions held only by QUAL: VMRK (0.29%). Only by VTI: AMZN (3.66%), AVGO (2.56%), JPM (1.31%), MU (1.29%), TSLA (1.22%).
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 | VTI |
|---|---|---|
| 2022 | -20.5% | -19.5% |
| 2023 | +30.9% | +26.0% |
| 2024 | +22.3% | +23.8% |
| 2025 | +12.7% | +17.1% |
| 2026 | +13.5% | +14.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QUAL and VTI good diversifiers for each other?
No. With a correlation of 0.97, QUAL and VTI move nearly in lockstep, so holding both adds very little diversification. On top of that, 41.0% of their holdings are the same, making the doubling-up even more literal.
FAQ
What is the correlation between QUAL and VTI?
Using weekly returns as of 2026-08-27: 0.97 over 3 years, with 0.94 over the last year and 0.97 over 5 years.
Is VTI a good diversifier for QUAL?
No. With a correlation of 0.97, QUAL and VTI move nearly in lockstep, so holding both adds very little diversification. On top of that, 41.0% of their holdings are the same, making the doubling-up even more literal.
How much do QUAL and VTI overlap?
41.0% by weight, across 122 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qual-vs-vti.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/qual-vs-vti/)
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Related comparisons
Hubs: QUAL correlations · VTI correlations
