ETF Versus

QUAL vs SPY

iShares MSCI USA Quality Factor ETF vs State Street SPDR S&P 500 ETF Trust

Last updated: 2026-04-10

QUAL iShares

iShares MSCI USA Quality Factor ETF (QUAL) is an exchange-traded fund issued by iShares that provides exposure to us factor - quality securities. It charges a low expense ratio of 0.15%. The fund offers a modest dividend yield of 0.94%. Launched in 2013, the fund has a 13-year track record.

AUM: $48.2B ER: 0.15% Yield: 0.94% Since: Jul 18, 2013
SPY SPDR

State Street SPDR S&P 500 ETF Trust (SPY) is an exchange-traded fund issued by SPDR that provides exposure to large-cap U.S. equities across growth and value styles. It charges a low expense ratio of 0.09%. The fund offers a moderate dividend yield of 1.09%. Launched in 1993, the fund has a 33-year track record.

AUM: $678.3B ER: 0.09% Yield: 1.09% Since: Jan 22, 1993

Quick Verdict

SPY has a slightly lower expense ratio (0.09% vs 0.15%), saving about $119 per $10,000 over 10 years. Over the past year, SPY has significantly outperformed with a 29.6% return vs 24.3%.

Key Metrics

Metric QUAL SPY
Expense Ratio 0.15% 0.09%
Dividend Yield 0.9% 1.1%
Fund Family iShares SPDR
Category US Factor - Quality US Large Cap Blend

Performance Chart

Indexed to 100 at start (5-year comparison)

80 98 116 134 152 170 2021-04 2022-07 2023-10 2025-01 2026-04
QUAL +58.7%
SPY +65.2%

Performance Comparison

Period QUAL SPY Difference
1 Month +0.12% +0.54% -0.42%
3 Months -2.19% -2.19% +0.00%
6 Months +3.57% +2.55% +1.02%
YTD +0.29% -0.47% +0.76%
1 Year +24.31% +29.62% -5.31%
3 Years +60.67% +65.95% -5.28%
5 Years +58.69% +65.18% -6.49%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period QUAL Fees SPY Fees You Save
$10,000 10 years $298 $179 $119
$10,000 20 years $1,278 $771 $507
$10,000 30 years $4,109 $2,486 $1,624
$50,000 10 years $1,490 $896 $594
$50,000 30 years $20,547 $12,428 $8,120
$100,000 30 years $41,094 $24,855 $16,239

Risk Metrics

Based on 5 years of daily returns

Metric QUAL SPY
Annualized Volatility 17.4% 17.1%
Max Drawdown -29.0% -25.4%
Sharpe Ratio 0.36 0.41

Dividend Comparison

Metric QUAL SPY
Annual Dividend (per share) $1.89 $7.38
Dividend Yield 0.95% 1.09%
Distribution Frequency Quarterly Quarterly

Top Holdings

4 of top 9 holdings overlap (44% overlap in top holdings)

QUAL Top Holdings

NameWeight
Apple Inc.AAPL6.23%
NVIDIA CorporationNVDA6.18%
Microsoft CorporationMSFT4.82%
Meta Platforms, Inc.META3.64%
The TJX Companies, Inc.TJX3.42%
Lam Research CorporationLRCX3.21%
Eli Lilly and CompanyLLY3.10%
Visa Inc.V3.01%
KLA CorporationKLAC2.77%
Applied Materials, Inc.AMAT2.49%

SPY Top Holdings

NameWeight
NVIDIA CorporationNVDA7.61%
Apple Inc.AAPL6.54%
Microsoft CorporationMSFT4.78%
Amazon.com, Inc.AMZN3.72%
Broadcom Inc.AVGO2.86%
Alphabet Inc.GOOG2.53%
Meta Platforms, Inc.META2.31%
Tesla, Inc.TSLA1.66%
Berkshire Hathaway Inc.BRK.B1.51%

Which One Should You Choose?

Choose SPY if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose SPY if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

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