QUAL vs VTV: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI USA Quality Factor ETF (QUAL) and Vanguard Value ETF (VTV) carry a correlation of 0.81, a very strong link. Looking through to holdings, 22.4% 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 VTV?
Over the past 3 years, QUAL and VTV moved with a correlation of 0.81, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.72 over 1 year against 0.81 over 3. Over 5 years the correlation is 0.84, and the annualized covariance of weekly returns is 133.9 %².
Among the 106 assets we track against QUAL, VTV ranks #23 by 3-year correlation. Over the last 12 months VTV came out ahead by 6.0 percentage points (+19.7% against +25.7%). Across three years, the rolling one-year figure varied moderately, from 0.61 to 0.93.
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 VTV: side by side
| QUAL (iShares MSCI USA Quality Factor ETF) | VTV (Vanguard Value ETF) | |
|---|---|---|
| 1-year return | +19.7% | +25.7% |
| 5-year return | +68.0% | +79.1% |
| Volatility (ann.) | 14.0% | 11.9% |
| Beta vs S&P 500 | 0.93 | 0.65 |
| Max drawdown (3Y) | -18.0% | -14.5% |
| Dividend yield | 0.86% | 1.86% |
| Expense ratio | 0.15% | 0.03% |
| Assets under management | $46.5B | $256.4B |
| Sector / category | ETF · US Style | ETF · US Style |
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. On the fund side, VTV sits in the Large Value category at Vanguard, with $256.4B under management, 308 holdings, a 0.03% expense ratio, a 1.86% trailing dividend yield.
Portfolio overlap between QUAL and VTV
The two portfolios partially overlap: 22.4% of the funds' weight sits in the same underlying holdings (65 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in QUAL | Weight in VTV |
|---|---|---|
| XOM | 2.18% | 2.40% |
| JNJ | 2.13% | 2.30% |
| BRK.B | 1.79% | 2.99% |
| MRK | 1.44% | 1.20% |
| WMT | 0.91% | 1.82% |
| LIN | 1.02% | 0.82% |
| KO | 0.82% | 1.12% |
| PG | 0.81% | 1.25% |
| GILD | 0.69% | 0.60% |
| PLD | 0.81% | 0.50% |
| LMT | 0.91% | 0.50% |
| SCHW | 0.50% | 0.65% |
| BLK | 0.50% | 0.57% |
| PGR | 0.41% | 0.46% |
| ADP | 1.22% | 0.40% |
Largest positions held only by QUAL: MSFT (7.51%), AAPL (6.62%), NVDA (6.00%), META (3.75%), LLY (3.72%). Only by VTV: JPM (3.51%), MU (3.46%), ABBV (1.65%), CSCO (1.53%), BAC (1.47%).
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 | VTV |
|---|---|---|
| 2022 | -20.5% | -2.1% |
| 2023 | +30.9% | +9.3% |
| 2024 | +22.3% | +16.0% |
| 2025 | +12.7% | +15.3% |
| 2026 | +13.5% | +19.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QUAL and VTV good diversifiers for each other?
No: a correlation of 0.81 means QUAL and VTV tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between QUAL and VTV?
Using weekly returns as of 2026-08-27: 0.81 over 3 years, with 0.72 over the last year and 0.84 over 5 years.
Is VTV a good diversifier for QUAL?
No: a correlation of 0.81 means QUAL and VTV tend to fall together, which is precisely when diversification is supposed to help.
How much do QUAL and VTV overlap?
The two funds share 65 holdings amounting to 22.4% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qual-vs-vtv.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/qual-vs-vtv/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: QUAL correlations · VTV correlations
