PSET vs QLTY
Principal Quality ETF vs GMO US Quality ETF
Which is better, PSET or QLTY?
QLTY has been ahead.
PSET has a lower expense ratio. QLTY led over 1Y, 3Y and the full window. PSET is less concentrated, with 34.2% 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 | PSET | QLTY |
|---|---|---|
| Expense Ratio | 0.15%Best | 0.50% |
| AUM | $26M | $5.4B |
| Dividend Yield | 0.69% | 0.66% |
| Holdings | 150 | 90 |
| YTD Return | +5.26% | +14.13%Best |
| 1Y Return | +6.00% | +20.95%Best |
| 3Y Return (annualized) | +13.51% | +21.84%Best |
| 5Y Return (annualized) | +8.64% | - |
| Volatility (annualized) | 12.2% | 11.9%Best |
| Max Drawdown | -22.0% | -17.0%Best |
| $10,000 over 2.9 years | $14,195 | $17,733Best |
| Top 10 Weight | 34.2%Best | 45.5% |
| Fund Family | Principal Funds | GMO |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Mar 21, 2016 | Nov 13, 2023 |
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).
PSET 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.
PSET vs QLTY Performance
Principal Quality ETF (PSET) is an ETF from Principal Funds and GMO US Quality ETF (QLTY) is an ETF from GMO. Over the past year PSET returned +6.00% while QLTY returned +20.95%. Year to date, PSET is up 5.26% versus a gain of 14.13% for QLTY.
Over three years, PSET compounded at +13.51% per year against +21.84% for QLTY.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PSET has been the more volatile fund, with annualized monthly volatility of 12.2% compared with 11.9% 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 -22.0% for PSET 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PSET charges 0.15% per year while QLTY charges 0.50%. On a $10,000 position that is $15 vs $50 annually, a gap of $35 per year that compounds over a long holding period. On income, PSET currently yields 0.69% against 0.66% for QLTY.
Holdings Overlap
35.3% of PSET's money is in holdings QLTY also owns. 45.9% of QLTY's money is in holdings PSET also owns.
The two portfolios partly overlap.
16 positions in common, counted across the 73 positions we hold weights for in PSET and 45 in QLTY, against full books of 150 and 90.
What only one of them owns
Our book lists 29 positions for QLTY that do not appear in our book for PSET (53.8% of the fund), and 55 for PSET that do not appear in QLTY (62.6%).
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 PSET | Weight in QLTY | Difference |
|---|---|---|---|
| MSFTMicrosoft Corp | 4.38% | 8.00% | 3.62% |
| NVDANvidia Corp | 7.13% | 3.30% | 3.83% |
| AAPLApple, Inc | 6.11% | 4.20% | 1.91% |
| GOOGLAlphabet Inc | 1.28% | 4.90% | 3.62% |
| AMZNAmazon.Com Inc | 2.27% | 3.50% | 1.23% |
| METAMeta Platforms Inc | 0.97% | 4.80% | 3.83% |
| VVisa Inc Class A | 2.14% | 2.80% | 0.66% |
| AVGOBroadcom Inc | 1.19% | 3.70% | 2.51% |
| MAMastercard Inc | 1.81% | 2.40% | 0.59% |
| CRMSalesforce Inc Crm Us Equity | 1.52% | 2.00% | 0.48% |
45.9% of QLTY is already inside PSET.
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, PSET or QLTY?
PSET has an expense ratio of 0.15% while QLTY charges 0.50%. PSET is the cheaper option, by $35 a year on a $10,000 investment.
Which performed better, PSET or QLTY?
Over the past year PSET returned +6.00% 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, PSET or QLTY?
PSET has been the more volatile fund at 12.2% annualized versus 11.9% for QLTY. Worst drawdown: PSET -22.0% vs QLTY -17.0%.
Should I hold both PSET and QLTY?
PSET and QLTY have a monthly-return correlation of 0.89, 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 PSET and QLTY?
45.9% of QLTY's money is in holdings PSET also owns. 45.9% of QLTY's is in holdings PSET also owns. They hold 16 positions in common, counted across the 73 positions we hold weights for in PSET and 45 in QLTY.
Which pays a higher dividend, PSET or QLTY?
PSET yields 0.69% while QLTY yields 0.66%, so PSET currently pays the higher dividend yield.
Is QLTY better than PSET?
PSET has a lower expense ratio. QLTY led over 1Y, 3Y and the full window. PSET is less concentrated, with 34.2% 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.