QUAL vs VOO: Head-to-Head Comparison
QUAL vs VOO: iShares MSCI USA Quality Factor ETF has an expense ratio of 0.15% while Vanguard S&P 500 ETF charges 0.03%. QUAL holds 125 securities vs VOO's 503. 5-year returns: 16.00% vs 15.80%.
Last updated: April 2026
Factor
Quick Verdict
VOO edges out QUAL with a stronger Beginner Suitability Score (9.5 vs 9). It offers lower fees for new investors.
Side-by-Side Comparison
| Metric | QUAL | VOO |
|---|---|---|
| Expense Ratio | 0.15% | 0.03% |
| AUM | $40.0B | $560.0B |
| Dividend Yield | 1.40% | 1.30% |
| Holdings | 125 | 503 |
| 1-Year Return | 27.50% | 26.70% |
| 5-Year Return (Ann.) | 16.00% | 15.80% |
| 10-Year Return (Ann.) | 13.80% | 13.30% |
| Beta | 1.00 | 1.00 |
| P/E Ratio | 26.5 | 25.8 |
QUAL 5-year annualized return is 16.00% compared to VOO's 15.80%. Over 10 years, QUAL returned 13.80% vs VOO's 13.30%.
View data table
| Period | QUAL Return | VOO Return |
|---|---|---|
| YTD | 3.30% | 3.20% |
| 1 Year | 27.50% | 26.70% |
| 3 Year | 11.80% | 11.20% |
| 5 Year | 16.00% | 15.80% |
| 10 Year | 13.80% | 13.30% |
Key Differences Between QUAL and VOO
QUAL (iShares MSCI USA Quality Factor ETF) is a quality factor fund managed by BlackRock. QUAL targets U.S. large and mid-cap stocks that score highly on quality metrics like high return on equity, stable earnings growth, and low debt. It uses the MSCI USA Sector Neutral Quality Index to select fundamentally strong companies. For beginners, QUAL offers a smart way to tilt a portfolio toward financially healthy companies that tend to weather market downturns better.
VOO (Vanguard S&P 500 ETF) is a u.s. large-cap blend fund managed by Vanguard. VOO tracks the S&P 500 index, giving you ownership in 500 of the largest U.S. companies in a single investment. It is one of the most popular ETFs in the world thanks to its ultra-low expense ratio and broad market exposure. For beginners, VOO is often recommended as a core portfolio holding because it provides instant diversification across America's leading businesses.
The most notable differences are in fees (0.15% vs 0.03%), number of holdings (125 vs 503), and 5-year returns (16.00% vs 15.80%).
QUAL vs VOO multi-factor comparison: QUAL has a 0.15% expense ratio, 16.00% 5-year return, 125 holdings, 1.00 beta, and 1.40% yield. VOO has 0.03% expense ratio, 15.80% 5-year return, 503 holdings, 1.00 beta, and 1.30% yield.
View data table
| Metric | QUAL | VOO |
|---|---|---|
| Expense Ratio | 0.15% | 0.03% |
| 5-Year Return | 16.00% | 15.80% |
| Holdings | 125 | 503 |
| Beta | 1.00 | 1.00 |
| Dividend Yield | 1.40% | 1.30% |
Want the full framework? This 2-hour ETF course teaches you exactly how to pick, buy, and hold profitable ETFs — from zero to confident investor. Under $15.
Ready to invest? Open an IBKR account in 10 minutes and get free stock. $0 commissions on US ETFs • Fractional shares from $1 • 150+ global markets.
Holdings Overlap Analysis
25%
Holdings Overlap
QUAL and VOO share only 25% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
QUAL and VOO share 25% of their top holdings (low overlap). QUAL has 125 total holdings and VOO has 503. Common holdings include AAPL, NVDA, MSFT.
View data table
| Metric | QUAL | VOO |
|---|---|---|
| Overlap | 25% | 25% |
| Unique Holdings | 75% | 75% |
| Total Holdings | 125 | 503 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
QUAL
Fee cost: $1,278
VOO
Fee cost: $258
Over 20 years, the fee difference amounts to $1,020 on a $10,000 investment. VOO saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, QUAL (0.15% fee) grows to $45,332 while VOO (0.03% fee) grows to $46,351. The fee difference costs $1,019.
View data table
| Year | QUAL Value | VOO Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,592 | $14,673 |
| 10 | $21,291 | $21,529 |
| 15 | $31,067 | $31,590 |
| 20 | $45,332 | $46,351 |
Which One Should a Beginner Choose?
Choose QUAL if: You want investors who want exposure to fundamentally strong, high-quality companies, those looking for a smart beta tilt without making large sector bets, long-term investors who prioritize companies with sustainable competitive advantages. It's managed by BlackRock with an expense ratio of 0.15%.
Choose VOO if: You want beginning investors looking for a simple core portfolio holding, long-term buy-and-hold investors seeking broad u.s. market exposure, cost-conscious investors who want minimal fees. It's managed by Vanguard with an expense ratio of 0.03%.
Can You Own Both QUAL and VOO?
Absolutely! With only 25% overlap, QUAL and VOO complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
Frequently Asked Questions
Should I buy QUAL or VOO?▾
VOO edges out QUAL with a stronger Beginner Suitability Score (9.5 vs 9). It offers lower fees for new investors. However, both are solid options. QUAL is best for investors who want investors who want exposure to fundamentally strong, high-quality companies, while VOO is better suited for beginning investors looking for a simple core portfolio holding.
What is the difference between QUAL and VOO?▾
QUAL (iShares MSCI USA Quality Factor ETF) tracks quality factor investments with 125 holdings and a 0.15% expense ratio. VOO (Vanguard S&P 500 ETF) focuses on u.s. large-cap blend with 503 holdings at 0.03%. Their top holdings overlap by 25%.
Can I own both QUAL and VOO?▾
Yes! With only 25% holdings overlap, QUAL and VOO complement each other well. Owning both gives you broader diversification.