PHEQ vs QLTY
Parametric Hedged Equity ETF vs GMO US Quality ETF
Which is better, PHEQ or QLTY?
QLTY has been ahead.
PHEQ has a lower expense ratio. QLTY led over 1Y, 3Y and the full window. PHEQ is less concentrated, with 40.8% of the fund in its ten largest positions against 45.5%.
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
| Metric | PHEQ | QLTY |
|---|---|---|
| Expense Ratio | 0.29%Best | 0.50% |
| AUM | $152M | $5.4B |
| Dividend Yield | 0.82% | 0.66% |
| Holdings | 374 | 90 |
| YTD Return | +9.39% | +14.13%Best |
| 1Y Return | +12.67% | +20.95%Best |
| 3Y Return (annualized) | +14.84% | +21.84%Best |
| Volatility (annualized) | 6.0%Best | 11.9% |
| Max Drawdown | -12.6%Best | -17.0% |
| $10,000 over 2.9 years | $14,604 | $17,733Best |
| Top 10 Weight | 40.8%Best | 45.5% |
| Fund Family | Parametric | GMO |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Oct 16, 2023 | Nov 13, 2023 |
Not shown on this pair: 5Y Return (annualized).
Volatility and max drawdown, and the $10,000 over 2.9 years row, are measured over the window both funds cover: Nov 15, 2023 to Oct 14, 2026 (2.9 years).
PHEQ 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 2.9 years both funds cover.
PHEQ vs QLTY Performance
Parametric Hedged Equity ETF (PHEQ) is an ETF from Parametric and GMO US Quality ETF (QLTY) is an ETF from GMO. Over the past year PHEQ returned +12.67% while QLTY returned +20.95%. Year to date, PHEQ is up 9.39% versus a gain of 14.13% for QLTY.
Over three years, PHEQ compounded at +14.84% per year against +21.84% for QLTY.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QLTY has been the more volatile fund, with annualized monthly volatility of 11.9% compared with 6.0% for PHEQ. 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 -12.6% for PHEQ 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PHEQ charges 0.29% per year while QLTY charges 0.50%. On a $10,000 position that is $29 vs $50 annually, a gap of $21 per year that compounds over a long holding period. On income, PHEQ currently yields 0.82% against 0.66% for QLTY.
Holdings Overlap
48.5% of PHEQ's money is in holdings QLTY also owns. 76.2% of QLTY's money is in holdings PHEQ also owns.
Most of QLTY is already inside PHEQ. Owning both mostly buys the same companies twice.
26 positions in common, counted across the 174 positions we hold weights for in PHEQ and 45 in QLTY, against full books of 374 and 90.
What only one of them owns
Our book lists 19 positions for QLTY that do not appear in our book for PHEQ (23.5% of the fund), and 139 for PHEQ that do not appear in QLTY (53.3%).
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
| Stock | Weight in PHEQ | Weight in QLTY | Difference |
|---|---|---|---|
| MSFTMicrosoft Corp | 5.98% | 8.00% | 2.02% |
| NVDANvidia Corp | 8.63% | 3.30% | 5.33% |
| AAPLApple, Inc | 7.52% | 4.20% | 3.32% |
| GOOGLAlphabet Inc | 3.20% | 4.90% | 1.70% |
| AMZNAmazon.Com Inc | 3.93% | 3.50% | 0.43% |
| METAMeta Platforms Inc | 2.40% | 4.80% | 2.40% |
| AVGOBroadcom Inc | 2.68% | 3.70% | 1.02% |
| JNJJohnson & Johnson - Common | 1.40% | 4.10% | 2.70% |
| TMOThermo Fisherscientific Inc. | 0.52% | 4.30% | 3.78% |
| LRCXLam Research Corp | 0.43% | 4.20% | 3.77% |
76.2% of QLTY is already inside PHEQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PHEQ or QLTY?
PHEQ has an expense ratio of 0.29% while QLTY charges 0.50%. PHEQ is the cheaper option, by $21 a year on a $10,000 investment.
Which performed better, PHEQ or QLTY?
Over the past year PHEQ returned +12.67% vs +20.95% for QLTY, so QLTY leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PHEQ or QLTY?
QLTY has been the more volatile fund at 11.9% annualized versus 6.0% for PHEQ. Worst drawdown: PHEQ -12.6% vs QLTY -17.0%.
Should I hold both PHEQ and QLTY?
PHEQ and QLTY have a monthly-return correlation of 0.87, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between PHEQ and QLTY?
76.2% of QLTY's money is in holdings PHEQ also owns. 76.2% of QLTY's is in holdings PHEQ also owns. They hold 26 positions in common, counted across the 174 positions we hold weights for in PHEQ and 45 in QLTY.
Which pays a higher dividend, PHEQ or QLTY?
PHEQ yields 0.82% while QLTY yields 0.66%, so PHEQ currently pays the higher dividend yield.
Is QLTY better than PHEQ?
PHEQ has a lower expense ratio. QLTY led over 1Y, 3Y and the full window. PHEQ is less concentrated, with 40.8% 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.