BAFE vs QLTY

BAFE vs QLTY

Which is better, BAFE or QLTY?

QLTY has been ahead.

QLTY has a lower expense ratio. QLTY led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.92. BAFE is less concentrated, with 45.4% of the fund in its ten largest positions against 45.5%.

Lower Fees: QLTYHigher Returns: QLTYLess Concentrated: BAFE

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricBAFEQLTY
Expense Ratio0.54%0.50%Best
AUM$1.8B$5.4B
Dividend Yield0.27%0.66%
Holdings9090
YTD Return+9.97%+14.13%Best
1Y Return+12.65%+20.95%Best
3Y Return (annualized)-+21.84%
Volatility (annualized)13.2%12.9%Best
Max Drawdown-18.4%-17.0%Best
$10,000 over 1.9 years$12,035$13,868Best
Top 10 Weight45.4%Best45.5%
Fund FamilyBrown AdvisoryGMO
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionNov 18, 2024Nov 13, 2023

Not shown on this pair: 5Y Return (annualized).

Volatility and max drawdown, and the $10,000 over 1.9 years row, are measured over the window both funds cover: Nov 18, 2024 to Oct 14, 2026 (1.9 years).

BAFE vs QLTY growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1.9 years both funds cover.

Compare BAFE against instead:BAFE vs SPYBAFE vs QQQBAFE vs VOOBAFE vs VTIQLTY against:QLTY vs VXUS

BAFE vs QLTY Performance

Brown Advisory Flexible Equity ETF (BAFE) is an ETF from Brown Advisory and GMO US Quality ETF (QLTY) is an ETF from GMO. Over the past year BAFE returned +12.65% while QLTY returned +20.95%. Year to date, BAFE is up 9.97% versus a gain of 14.13% for QLTY.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

BAFE has been the more volatile fund, with annualized monthly volatility of 13.2% compared with 12.9% for QLTY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -18.4% for BAFE and -17.0% for QLTY. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

BAFE charges 0.54% per year while QLTY charges 0.50%. On a $10,000 position that is $54 vs $50 annually, a gap of $4 per year that compounds over a long holding period. On income, BAFE currently yields 0.27% against 0.66% for QLTY.

Holdings Overlap

BAFE already in QLTY42.6%
QLTY already in BAFE43.3%

42.6% of BAFE's money is in holdings QLTY also owns. 43.3% of QLTY's money is in holdings BAFE also owns.

The two portfolios partly overlap.

13 positions in common, counted across the 42 positions we hold weights for in BAFE and 45 in QLTY, against full books of 90 and 90.

What only one of them owns

Our book lists 32 positions for QLTY that do not appear in our book for BAFE (56.4% of the fund), and 24 for BAFE that do not appear in QLTY (40.2%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in BAFEWeight in QLTYDifference
MSFTMicrosoft Corp6.49%8.00%1.51%
METAMeta Platforms Inc4.60%4.80%0.20%
GOOGLAlphabet Inc3.72%4.90%1.18%
AMZNAmazon.Com Inc4.42%3.50%0.92%
NVDANvidia Corp3.84%3.30%0.54%
VVisa Inc Class A4.22%2.80%1.42%
MAMastercard Inc3.73%2.40%1.33%
AAPLApple, Inc1.90%4.20%2.30%
UNHUnitedhealth Group, Inc.2.82%2.40%0.42%
KLACKla-tencor2.28%2.70%0.42%

43.3% of QLTY is already inside BAFE.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

BAFEQLTY

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Frequently Asked Questions

Which is cheaper, BAFE or QLTY?

BAFE has an expense ratio of 0.54% while QLTY charges 0.50%. QLTY is the cheaper option, by $4 a year on a $10,000 investment.

Which performed better, BAFE or QLTY?

Over the past year BAFE returned +12.65% vs +20.95% for QLTY, so QLTY leads on 1-year performance. Over the longest common window we track (2 years), BAFE annualized +10.24% vs +18.78% for QLTY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, BAFE or QLTY?

BAFE has been the more volatile fund at 13.2% annualized versus 12.9% for QLTY. Worst drawdown: BAFE -18.4% vs QLTY -17.0%.

Should I hold both BAFE and QLTY?

BAFE and QLTY have a monthly-return correlation of 0.92, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between BAFE and QLTY?

43.3% of QLTY's money is in holdings BAFE also owns. 43.3% of QLTY's is in holdings BAFE also owns. They hold 13 positions in common, counted across the 42 positions we hold weights for in BAFE and 45 in QLTY.

Which pays a higher dividend, BAFE or QLTY?

BAFE yields 0.27% while QLTY yields 0.66%, so QLTY currently pays the higher dividend yield.

Is QLTY better than BAFE?

QLTY has a lower expense ratio. QLTY led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.92. BAFE is less concentrated, with 45.4% of the fund in its ten largest positions against 45.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.