At a glance
IQLT charges 0.3% a year, above the 0.15% average of the 8 funds most like it (the 7th cheapest of 9). It has $13.83B in assets, the 8th largest of that group; it paid 2.37% of its price in distributions over the past 12 months, semiannual. Over the past year it returned +16.3% with distributions reinvested (S&P 500: +11.5%), 6th of those 9 funds; over three years it returned +17.2% a year. At its worst it fell 31.6% in the 2020 crash (S&P 500: 33.7%) and 29.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months and 15 months after the lows. Its ten largest positions make up 22.6% of the fund, out of 313 in all.
The short version
The iShares MSCI Intl Quality Factor ETF (IQLT), from BlackRock, tracks the MSCI World ex USA Sector Neutral Quality Index. As of July 31, 2026, it held 313 developed-market stocks outside the US, led by ASML, Allianz and Roche. It favors companies with high return on equity, steady earnings and low debt, while keeping sector weights close to the broad market. Its 0.30% yearly fee is about double the 0.15% average of similar funds.
Price history
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IQLT +16.3% over the year to Nov 2, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| IQLT official prospectus, to Dec 31, 2024 | — | +1.74% | — | +5.47% | +6.43% | — |
| MSCIACWI Ex USA Index Net index, same period | — | +5.53% | — | +4.10% | +4.98% | — |
| IQLT price data to Nov 2, 2026 | +12.9% | +16.3% | +17.2% | +7.6% | +10.1% | +8.5% |
- Over the year to Nov 2, 2026, IQLT returned +16.3%, 6th of 9 among similar funds.
- Its 5-year annualized return was +7.6% and its 10-year +10.1%.
- In the 2020 COVID crash it fell 31.6% and regained its old high 5.4 months after the low.
- Its worst full calendar year was 2022 (-15.2%); its best was 2019 (+28.2%).
- The deepest fall in its price history was 32.2% (Jan 17, 2020 to Mar 23, 2020), recovered by Oct 12, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +12.9% | — |
| 2025 | +25.4% | — |
| 2024 | +1.6% | +1.74% |
| 2023 | +18.8% | +18.46% |
| 2022 | -15.2% | -15.12% |
| 2021 | +12.9% | +12.78% |
| 2020 | +12.5% | +13.13% |
| 2019 | +28.2% | +27.83% |
| 2018 | -10.8% | -10.87% |
| 2017 | +24.1% | +24.09% |
| 2016 | -0.1% | +0.60% |
| 2015 | +0.6% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 31.6% over that stretch · deepest drop along the way 31.6%, back to its old high 5.4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 28.3% over that stretch · deepest drop along the way 29%, back to its old high 15 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.7500 | |
| 2025 | $1.0600 | -0.9% |
| 2024 | $1.0700 | +25.9% |
| 2023 | $0.8500 | -15.8% |
| 2022 | $1.0100 | +14.8% |
| 2021 | $0.8800 | +54.4% |
| 2020 | $0.5700 | -23.0% |
| 2019 | $0.7400 | +5.7% |
| 2018 | $0.7000 | 0.0% |
| 2017 | $0.7000 | -1.4% |
| 2016 | $0.7100 | 0.0% |
| 2015 | $0.7100 |
What's inside
As of Jul 31, 2026, the fund held 313 securities; the ten largest made up 22.59% of assets.
| Holding | Weight | |
|---|---|---|
| ASML Holding N.V. | 5.42% | |
| Allianz SE | 2.68% | |
| Roche Holding AG | 2.20% | |
| ABB Ltd | 1.95% | |
| Zurich Insurance Group AG | 1.83% | |
| Nestle S.A. | 1.81% | |
| Novartis AG | 1.78% | |
| ASTRAZENECA PLC | 1.68% | |
| ADVANTEST CORPORATION | 1.65% | |
| SHELL PLC | 1.59% | |
| ROLLS-ROYCE HOLDINGS PLC | 1.50% | |
| BHP GROUP LIMITED | 1.49% | |
| Tokio Marine Holdings, Inc. | 1.49% | |
| SCHNEIDER ELECTRIC SE | 1.43% | |
| UNILEVER PLC | 1.34% |
By country
United Kingdom 15.25%Switzerland 13.61%Japan 13.23%Canada 8.76%Netherlands 8.56%By asset type
Stocks 98.69%Other 0.98%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $591.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.00%, +1.76%, +1.36%.
How it works
IQLT starts with the MSCI World ex USA Index. That index covers roughly the top 85% of stock market value in developed countries outside the US. MSCI then gives each company a "quality score" based on three measures: high return on equity (profit compared with shareholders' money), stable year-over-year earnings growth and low debt compared with equity. A company's weight equals its quality score multiplied by its weight in the parent index.
Next, weights are adjusted so each sector, such as financials or industrials, makes up about the same share as it does in the parent index. Quality is judged within each sector, not across the whole market. No single company can exceed 5%. ASML sat right at that cap, at 5.4% of assets as of July 31, 2026. The index is rebalanced twice a year. Portfolio turnover was 20%.
BlackRock does not try to beat the index. It uses "representative sampling," meaning it may hold a sample of stocks that closely matches the index rather than every one. At least 80% of assets go into index stocks or close equivalents. Up to 20% can go into futures, cash and similar holdings that help it track the index. As of July 31, 2026, stock index futures were about 0.01% of assets. The fund may also lend out up to one-third of its assets to earn extra income.
What it really costs
- IQLT charges 0.3% a year, versus an average of 0.15% for the similar funds below (7th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $31 in the first year and $381 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| IQLT | $31 | $97 | $169 | $381 |
In a retirement portfolio
IQLT adds exposure to developed markets outside the US, such as the UK, Switzerland and Japan, tilted toward profitable, low-debt companies, which can balance a US-heavy portfolio.
IQLT launched in January 2015, so it has not been through a 2008-style crisis. In the 2020 COVID crash it fell 31.6% and recovered by September 2020. Its deepest drop was 32.2%, from January to March 2020, and it took about 6.7 months to recover. In the 2022 bear market it fell 29% and needed 15 months, until December 2023, to recover. Its worst calendar year was 2022, at -15.2%. A retiree selling shares for cash in a year like that would have sold well below the peak. The trailing yield was 2.37% as of October 29, 2026, paid twice a year. The SEC's standard example puts costs at $31 in year one on $10,000. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want developed markets outside the US, with UK, Swiss and Japanese stocks at roughly 13% to 15% each as of July 31, 2026.
- Those who prefer a quality tilt toward high-return, low-debt firms like ASML, Roche and Nestle, with sector weights similar to the broad market.
- Long-term holders comfortable with twice-yearly income, a 2.37% trailing yield as of October 29, 2026, and drops near 30% in 2020 and 2022.
Look elsewhere if
- Cost-focused investors: broad funds like IEFA at 0.07% or VEA at 0.03% cost far less than IQLT's 0.30%.
- Those who need steady monthly income, since IQLT pays only twice a year.
- Investors wanting emerging markets or US stocks; the index covers only developed countries outside the US.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| IQLT this fund | — | 0.3% | $13.83B | +16.3% | +17.2% |
| IDHQ Invesco S&P International Developed High Qu… | 54% | 0.29% | $943.7M | +28.9% | +23.5% |
| EFA iShares MSCI EAFE ETF | 45% | 0.32% | $77.98B | +13.5% | +18.2% |
| IEFA iShares Core MSCI EAFE ETF | 38% | 0.07% | $190.11B | +13.7% | +18.5% |
| IDEV iShares Core MSCI International Developed M… | 37% | 0.04% | $31.64B | +14.6% | +19.2% |
| SCHF Schwab International Equity ETF | 36% | 0.06% | $69.68B | +17.7% | +20.4% |
| EFV iShares MSCI EAFE Value ETF | 34% | 0.33% | $29.11B | +21.9% | +23.3% |
| SPDW SPDR Portfolio Developed World ex-US ETF | 32% | 0.03% | $40.29B | +17.3% | +20.5% |
Questions investors ask
What does IQLT invest in?
IQLT holds large and mid-size stocks from developed countries outside the US that score well on return on equity, earnings stability and low debt. As of July 31, 2026, it owned 313 stocks. The largest were ASML at 5.4%, Allianz at 2.7% and Roche at 2.2%. The UK, Switzerland and Japan were the biggest countries, each at roughly 13% to 15%. Its 10 largest holdings made up about 22.6% of assets.
What's the difference between IQLT and IDHQ?
Both funds target quality stocks in developed markets outside the US, and about 54% of their holdings overlap. IQLT tracks an MSCI index, and IDHQ, from Invesco, tracks an S&P index. Their fees are nearly the same, at 0.30% for IQLT and 0.29% for IDHQ. IDHQ returned 28.9% over one year as of October 27, 2026, while IQLT returned 15.8% as of October 29, 2026. IQLT is much larger, with about $13.8 billion in net assets versus roughly $944 million for IDHQ as of July 31, 2026.
How often does IQLT pay dividends?
IQLT pays dividends twice a year. Over the 12 months to October 29, 2026, it paid about $1.20 per share, for a trailing yield of 2.37%. Payments can change from one period to the next because they depend on dividends from the fund's foreign holdings. Currency moves against the US dollar also affect them. Investors who need monthly income would have to plan around this twice-yearly schedule.
Is IQLT more expensive than IEFA?
Yes. IQLT's expense ratio is 0.30%, while IEFA, iShares' broad international developed fund, charges 0.07%. Other broad funds cost even less, including IDEV at 0.04% and VEA and SPDW at 0.03%. IQLT ranks 7th of 9 on cost among similar funds, whose average fee is 0.15%. In the SEC's standard example, $10,000 in IQLT would cost about $381 in fees over 10 years. The extra cost pays for the quality screen, which may or may not lead to better returns.
How has IQLT performed over the long run?
Over the 10 years ended December 31, 2024, IQLT returned 6.43% a year, according to its prospectus. Its comparison index, the MSCI ACWI ex USA Index, returned 4.98% a year over the same period. Its price-based 10-year return was 10.1% a year as of October 29, 2026. Over three years, though, its 19.1% yearly return ranked last of 9 similar funds. Its worst calendar year was 2022, when it lost 15.12%.