At a glance
QUAL charges 0.15% a year, the same as the average of the 8 funds most like it (the 6th cheapest of 9). It has $46.53B in assets, the 4th largest of that group; it paid 0.21% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +14.1% with distributions reinvested (S&P 500: +11.5%), the best of those 9 funds; over three years it returned +19.6% a year. At its worst it fell 34.1% in the 2020 crash (S&P 500: 33.7%) and 27.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months and 14 months after the lows. Its ten largest positions make up 43.2% of the fund, out of 125 in all.
The short version
The iShares MSCI USA Quality Factor ETF (QUAL), from BlackRock, tracks the MSCI USA Sector Neutral Quality Index: large and mid-sized U.S. companies with high returns on shareholders' money, steady earnings and low debt. Sector weights match the broad market, so technology made up about 35% of the fund as of July 31, 2026. It offers a quality tilt on U.S. stocks for 0.15% a year, below the 0.21% average for similar funds.
Price history
The interactive chart needs JavaScript.
QUAL +14.1% 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 | |
|---|---|---|---|---|---|---|
| QUAL official prospectus, to Dec 31, 2024 | — | +22.23% | — | +13.57% | +12.90% | — |
| MSCIUSA Index index, same period | — | +25.08% | — | +14.56% | +13.08% | — |
| QUAL price data to Nov 2, 2026 | +12.5% | +14.1% | +19.6% | +10.6% | +14.7% | +13.5% |
- Over the year to Nov 2, 2026, QUAL returned +14.1%, 1st of 9 among similar funds.
- Its 5-year annualized return was +10.6% and its 10-year +14.7%.
- In the 2020 COVID crash it fell 34.1% and regained its old high 4.7 months after the low.
- Its worst full calendar year was 2022 (-20.5%); its best was 2019 (+33.9%).
- The deepest fall in its price history was 34.1% (Feb 19, 2020 to Mar 23, 2020), recovered by Aug 12, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +12.5% | — |
| 2025 | +12.7% | — |
| 2024 | +22.3% | +22.23% |
| 2023 | +30.9% | +30.83% |
| 2022 | -20.5% | -20.39% |
| 2021 | +26.9% | +26.90% |
| 2020 | +17.0% | +16.97% |
| 2019 | +33.9% | +34.14% |
| 2018 | -5.7% | -5.77% |
| 2017 | +22.3% | +22.26% |
| 2016 | +9.2% | +9.18% |
| 2015 | +5.4% | +5.56% |
| 2014 | +11.7% | — |
| 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 34.1% over that stretch · deepest drop along the way 34.1%, back to its old high 4.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 27.3% over that stretch · deepest drop along the way 27.6%, back to its old high 14 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.3200 | |
| 2025 | $0.4650 | +2.8% |
| 2024 | $0.4525 | 0.0% |
| 2023 | $0.4525 | 0.0% |
| 2022 | $0.4525 | +3.4% |
| 2021 | $0.4375 | +8.0% |
| 2020 | $0.4050 | +0.6% |
| 2019 | $0.4025 | +4.5% |
| 2018 | $0.3850 | +5.5% |
| 2017 | $0.3650 | +7.4% |
| 2016 | $0.3400 | +30.8% |
| 2015 | $0.2600 | +25.3% |
| 2014 | $0.2075 |
What's inside
As of Jul 31, 2026, the fund held 125 securities; the ten largest made up 43.22% of assets.
| Holding | Weight | |
|---|---|---|
| MICROSOFT CORPORATION | 7.16% | |
| APPLE INC. | 6.64% | |
| NVIDIA CORPORATION | 5.85% | |
| THE TJX COMPANIES, INC. | 3.98% | |
| META PLATFORMS, INC. | 3.69% | |
| ELI LILLY AND COMPANY | 3.66% | |
| LAM RESEARCH CORPORATION | 3.49% | |
| VISA INC. | 3.17% | |
| APPLIED MATERIALS, INC. | 3.10% | |
| KLA CORPORATION | 2.47% | |
| MASTERCARD INCORPORATED | 2.28% | |
| EXXONMOBIL HOLDINGS CORPORATION | 2.18% | |
| JOHNSON & JOHNSON | 2.06% | |
| ALPHABET INC. | 2.05% | |
| BERKSHIRE HATHAWAY INC. | 1.84% |
By country
United States 95.55%Ireland 2.58%Switzerland 1.25%Curaçao 0.29%Cayman Islands 0.1%By asset type
Stocks 99.86%By sector
Sectors of the companies held, for the 86.6% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $6.37B (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +4.00%, +2.17%, -0.26%.
How it works
QUAL tracks the MSCI USA Sector Neutral Quality Index. Its parent index, the MSCI USA Index, weights large and mid-sized U.S. companies by market value. MSCI scores each company against its sector peers on three measures: high return on equity (profit relative to shareholders' money), low earnings variability (steady profits) and low leverage (little debt). The top scorers make the cut: 125 stocks as of July 31, 2025.
Each stock's weight starts as its quality score times its weight in the parent index, so large, high-scoring companies count most. MSCI then resizes sectors to match the parent index; that is the “sector neutral” part. So technology made up about 35% of the fund as of July 31, 2026, led by Microsoft, Apple and Nvidia. Each company is capped at 5%, and the index rebalances twice a year. Weights can drift in between: Microsoft was 7.2% of the fund on that date.
BlackRock uses representative sampling: the fund may skip some index stocks but aims to match the index's overall profile. It generally keeps at least 80% of assets in index stocks and may hold futures, cash and other securities with the rest. It may lend out securities worth up to a third of its assets. It uses no leverage and does not shift to cash in falling markets.
What it really costs
- QUAL charges 0.15% a year, versus an average of 0.15% for the similar funds below (6th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $15 in the first year and $192 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| QUAL | $15 | $48 | $85 | $192 |
In a retirement portfolio
It held 125 large and mid-sized U.S. companies across all major sectors as of July 31, 2026, with sector weights matching the broad market and a 0.15% annual cost.
QUAL offers broad U.S. stock exposure with a lean toward profitable, low-debt companies, but it has fallen hard in downturns. Launched in 2013, it has no 2008 record. In the 2020 COVID crash, its deepest drop, it fell 34.1% from February 19 to March 23, then regained its peak by August 12, 2020. In the 2022 bear market it fell 27.6% and needed about 14 months after its September 30 low to recover. Its worst calendar year was 2022, down 20.4%. Selling shares for spending after drops like these locks in losses.
Income is small: the fund's yield over the 12 months to October 27, 2026, was 0.21%, paid every three months. The 0.15% annual fee comes to $15 on $10,000 in year one under the SEC's standard example. 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 wanting large and mid-sized U.S. stocks tilted toward high-profit, low-debt companies, with sector weights matching the MSCI USA Index.
- Cost-conscious investors comparing quality-style funds: QUAL charges 0.15% a year, versus 0.21% for Dimensional's DUHP, its closest match by holdings.
- Long-term holders who can sit through drops like its 34.1% fall in early 2020 and 27.6% slide in 2022.
Look elsewhere if
- Income seekers: the yield over the 12 months to October 27, 2026, was just 0.21%, paid quarterly.
- Anyone expecting quality stocks to beat the market: QUAL trailed the MSCI USA Index over one, five and ten years through 2024.
- Investors wanting less technology: about 35% of the fund was in tech as of July 31, 2026, led by Microsoft, Apple and Nvidia.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| QUAL this fund | — | 0.15% | $46.53B | +14.1% | +19.6% |
| DUHP Dimensional US High Profitability ETF | 53% | 0.21% | $12.28B | +11.7% | +21.2% |
| VSLU Applied Finance Valuation Large Cap ETF | 49% | 0.49% | $545.8M | +12.5% | +24.8% |
| USCL iShares Climate Conscious & Transition MSCI… | 45% | 0.08% | $2.87B | +9.2% | +23.1% |
| XLG Invesco S&P 500® Top 50 ETF | 45% | 0.2% | $10.56B | +6.9% | +25.3% |
| SCHG Schwab U.S. Large-Cap Growth ETF | 44% | 0.04% | $63.03B | +2.2% | +23.0% |
| VUG Vanguard Growth ETF | 44% | 0.04% | $379.29B | +3.8% | +25.1% |
| USNZ Xtrackers Net Zero Pathway Paris Aligned US… | 43% | 0.1% | $299.4M | +12.8% | +24.4% |
Questions investors ask
Is QUAL good for retirement?
QUAL can serve as a core U.S. stock holding for long-term savers, but it is not built for income or protection. It holds large and mid-sized U.S. companies with high returns on equity, steady earnings and low debt, for 0.15% a year. Its yield was 0.21% over the 12 months to October 27, 2026. It fell 34.1% in early 2020 and lost 20.4% in calendar 2022, so it offers little cushion for someone selling shares to cover spending in a bad year.
What's the difference between QUAL and DUHP?
The clearest differences are cost and size. Both lean toward profitable U.S. companies, and about 53% of their holdings overlapped in the latest SEC filings. QUAL tracks an MSCI index scoring stocks on return on equity, earnings stability and debt, with sector weights matching the market. It charges 0.15% versus 0.21% for DUHP and held $46.5 billion versus $12.3 billion as of July 31, 2026. Through October 27, 2026, QUAL returned 13.1% over one year to DUHP's 11.7%, and 21.7% a year over three years to DUHP's 21.2%.
Does QUAL pay monthly dividends?
No. QUAL pays dividends quarterly, and they are small. Over the 12 months to October 27, 2026, it paid about $0.47 per share, a trailing yield of 0.21%. The fund picks companies for high returns on equity, steady earnings and low debt, not for high dividends, so income is a by-product rather than a goal. For investors who need regular cash, it may fill a growth role rather than an income one.
Does QUAL beat the market?
Not over the periods reported in its prospectus. Through December 31, 2024, QUAL returned 12.90% a year over 10 years, versus 13.08% for the MSCI USA Index, the broad index its holdings are drawn from. Over five years it returned 13.57% a year versus 14.56%, and over one year 22.23% versus 25.08%. The prospectus warns that quality stocks can lag other investing styles or the overall market. Fund returns are after its 0.15% fee; index returns carry no costs.
Why does QUAL have so much tech?
Because the index is sector neutral. After choosing the highest-scoring quality stocks, MSCI adjusts weights so each sector matches its share of the MSCI USA Index. Technology made up about 35% of the fund as of July 31, 2026, and the top three holdings were Microsoft (7.2%), Apple (6.6%) and Nvidia (5.9%). Lam Research, Applied Materials and KLA were also in the top 10. QUAL picks the higher-scoring companies within each sector rather than avoiding any sector.