QLTY vs USMC
GMO US Quality ETF vs Principal U.S. Mega-Cap ETF
Which is better, QLTY or USMC?
Each has led over a different period.
USMC has a lower expense ratio. QLTY led over 1Y, USMC over 3Y and the full window. The two have moved almost in lockstep, correlation 0.90. QLTY is less concentrated, with 45.5% of the fund in its ten largest positions against 55.3%.
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 | QLTY | USMC |
|---|---|---|
| Expense Ratio | 0.50% | 0.12%Best |
| AUM | $5.4B | $5.2B |
| Dividend Yield | 0.66% | 0.74% |
| Holdings | 90 | 58 |
| YTD Return | +14.13%Best | +13.98% |
| 1Y Return | +20.95%Best | +14.91% |
| 3Y Return (annualized) | +21.84% | +22.22%Best |
| 5Y Return (annualized) | - | +14.81% |
| Volatility (annualized) | 11.9% | 11.6%Best |
| Max Drawdown | -17.0%Best | -19.1% |
| $10,000 over 2.9 years | $17,733 | $17,738Best |
| Top 10 Weight | 45.5%Best | 55.3% |
| Fund Family | GMO | Principal Funds |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Nov 13, 2023 | Oct 11, 2017 |
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).
QLTY vs USMC 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.
QLTY vs USMC Performance
GMO US Quality ETF (QLTY) is an ETF from GMO and Principal U.S. Mega-Cap ETF (USMC) is an ETF from Principal Funds. Over the past year QLTY returned +20.95% while USMC returned +14.91%. Year to date, QLTY is up 14.13% versus a gain of 13.98% for USMC.
Over three years, QLTY compounded at +21.84% per year against +22.22% for USMC.
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 11.6% for USMC. 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 -17.0% for QLTY and -19.1% for USMC. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QLTY charges 0.50% per year while USMC charges 0.12%. On a $10,000 position that is $50 vs $12 annually, a gap of $38 per year that compounds over a long holding period. On income, QLTY currently yields 0.66% against 0.74% for USMC.
Holdings Overlap
50.5% of QLTY's money is in holdings USMC also owns. 63.2% of USMC's money is in holdings QLTY also owns.
The two portfolios partly overlap.
15 positions in common, counted across the 45 positions we hold weights for in QLTY and 27 in USMC, against full books of 90 and 58.
What only one of them owns
Our book lists 12 positions for USMC that do not appear in our book for QLTY (36.8% of the fund), and 30 for QLTY that do not appear in USMC (49.2%).
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
| Stock | Weight in QLTY | Weight in USMC | Difference |
|---|---|---|---|
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 8.00% | 5.55% | 2.45% |
| AAPLApple, Inc | 4.20% | 7.40% | 3.20% |
| NVDANvidia Corp. | 3.30% | 7.99% | 4.69% |
| GOOGLAlphabet Inc Cap Stk Cl A | 4.90% | 5.33% | 0.43% |
| METAMeta Platform Inc | 4.80% | 3.92% | 0.88% |
| AVGOBroadcom Inc | 3.70% | 4.44% | 0.74% |
| JNJJohnson & Johnson - Common | 4.10% | 3.25% | 0.85% |
| VVisa Inc-class A Shares | 2.80% | 4.54% | 1.74% |
| AMZNAmazon.Com Inc | 3.50% | 3.77% | 0.27% |
| MAMastercard Inc | 2.40% | 4.32% | 1.92% |
63.2% of USMC is already inside QLTY.
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, QLTY or USMC?
QLTY has an expense ratio of 0.50% while USMC charges 0.12%. USMC is the cheaper option, by $38 a year on a $10,000 investment.
Which performed better, QLTY or USMC?
Over the past year QLTY returned +20.95% vs +14.91% for USMC, so QLTY leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QLTY or USMC?
QLTY has been the more volatile fund at 11.9% annualized versus 11.6% for USMC. Worst drawdown: QLTY -17.0% vs USMC -19.1%.
Should I hold both QLTY and USMC?
QLTY and USMC have a monthly-return correlation of 0.90, 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 QLTY and USMC?
63.2% of USMC's money is in holdings QLTY also owns. 63.2% of USMC's is in holdings QLTY also owns. They hold 15 positions in common, counted across the 45 positions we hold weights for in QLTY and 27 in USMC.
Which pays a higher dividend, QLTY or USMC?
QLTY yields 0.66% while USMC yields 0.74%, so USMC currently pays the higher dividend yield.
Is USMC better than QLTY?
USMC has a lower expense ratio. QLTY led over 1Y, USMC over 3Y and the full window. The two have moved almost in lockstep, correlation 0.90. QLTY is less concentrated, with 45.5% of the fund in its ten largest positions against 55.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.