QLTY vs XLSR
GMO US Quality ETF vs State Street US Sector Rotation ETF
Which is better, QLTY or XLSR?
QLTY has been ahead.
QLTY has a lower expense ratio. QLTY led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.93. QLTY is less concentrated, with 45.5% of the fund in its ten largest positions against 85.3%.
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 | XLSR |
|---|---|---|
| Expense Ratio | 0.50%Best | 0.70% |
| AUM | $5.4B | $1.1B |
| Dividend Yield | 0.66% | 0.40% |
| Holdings | 90 | 26 |
| YTD Return | +15.19%Best | +8.22% |
| 1Y Return | +21.45%Best | +12.87% |
| 3Y Return (annualized) | +22.21%Best | +17.59% |
| 5Y Return (annualized) | - | +9.72% |
| Volatility (annualized) | 11.9% | 11.8%Best |
| Max Drawdown | -17.0%Best | -20.6% |
| $10,000 over 2.9 years | $17,890Best | $15,790 |
| Top 10 Weight | 45.5%Best | 85.3% |
| Fund Family | GMO | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Nov 13, 2023 | Apr 2, 2019 |
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 15, 2026 (2.9 years).
QLTY vs XLSR 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 XLSR Performance
GMO US Quality ETF (QLTY) is an ETF from GMO and State Street US Sector Rotation ETF (XLSR) is an ETF from State Street Investment Management. Over the past year QLTY returned +21.45% while XLSR returned +12.87%. Year to date, QLTY is up 15.19% versus a gain of 8.22% for XLSR.
Over three years, QLTY compounded at +22.21% per year against +17.59% for XLSR.
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 11.8% for XLSR. 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 -20.6% for XLSR. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.93. 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 XLSR charges 0.70%. On a $10,000 position that is $50 vs $70 annually, a gap of $20 per year that compounds over a long holding period. On income, QLTY currently yields 0.66% against 0.40% for XLSR.
Holdings Overlap
34.5% of QLTY's money is in holdings XLSR also owns. 22.7% of XLSR's money is in holdings QLTY also owns.
The two portfolios partly overlap.
8 positions in common, counted across the 45 positions we hold weights for in QLTY and 25 in XLSR, against full books of 90 and 26.
What only one of them owns
Measured across the 45 and 25 positions we hold weights for.
QLTY holds 37 positions XLSR does not, 65.2% of the fund.
Largest: TMO 4.30%, LRCX 4.20%, JNJ 4.10%, TXN 3.80%, V 2.80%
Top Shared Holdings
| Stock | Weight in QLTY | Weight in XLSR | Difference |
|---|---|---|---|
| MSFTMicrosoft Corp | 8.00% | 2.98% | 5.02% |
| GOOGLAlphabet Inc | 4.90% | 5.17% | 0.27% |
| AAPLApple, Inc | 4.20% | 4.12% | 0.08% |
| METAMeta Platforms Inc | 4.80% | 3.03% | 1.77% |
| NVDANvidia Corp | 3.30% | 4.47% | 1.17% |
| AVGOBroadcom Inc | 3.70% | 1.41% | 2.29% |
| AMZNAmazon.Com Inc | 3.50% | 0.95% | 2.55% |
| NFLXNetflix, Inc. | 2.10% | 0.54% | 1.56% |
34.5% of QLTY is already inside XLSR.
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 XLSR?
QLTY has an expense ratio of 0.50% while XLSR charges 0.70%. QLTY is the cheaper option, by $20 a year on a $10,000 investment.
Which performed better, QLTY or XLSR?
Over the past year QLTY returned +21.45% vs +12.87% for XLSR, 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 XLSR?
QLTY has been the more volatile fund at 11.9% annualized versus 11.8% for XLSR. Worst drawdown: QLTY -17.0% vs XLSR -20.6%.
Should I hold both QLTY and XLSR?
QLTY and XLSR have a monthly-return correlation of 0.93, 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 XLSR?
34.5% of QLTY's money is in holdings XLSR also owns. 22.7% of XLSR's is in holdings QLTY also owns. They hold 8 positions in common, counted across the 45 positions we hold weights for in QLTY and 25 in XLSR.
Which pays a higher dividend, QLTY or XLSR?
QLTY yields 0.66% while XLSR yields 0.40%, so QLTY currently pays the higher dividend yield.
Is XLSR better than QLTY?
QLTY has a lower expense ratio. QLTY led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.93. QLTY is less concentrated, with 45.5% of the fund in its ten largest positions against 85.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.