Dividend comparison
VFMO vs QUAL: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard U.S. Momentum Factor ETF and iShares MSCI USA Quality Factor ETF, side by side. Updated October 21, 2026.
VFMO vs QUAL: key differences
The short answer, from the latest data on this page.
- Fees. VFMO is cheaper at 0.13% a year versus 0.15% for QUAL. On $10,000 that is $2 a year less in fees.
- Income. QUAL pays more income, yielding 0.84% over the last twelve months versus 0.61% for VFMO. That is about $22 more a year on $10,000. Both pay quarterly.
- Performance. Over the last 5 years, QUAL returned 71.5% versus 70.5% for VFMO, with dividends reinvested. $10,000 would have grown to $17,151 in QUAL and $17,048 in VFMO.
- Risk. QUAL has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -28.2%, against -25.8% for VFMO.
- Diversification. VFMO holds 638 positions and QUAL holds 118. The ten largest positions make up 10.9% of VFMO and 45.1% of QUAL.
- Overlap. At least 9% of the two portfolios overlap by weight, across 14 shared holdings. They mostly own different companies, so they can complement each other.
- Dividend growth. VFMO grew its yearly payout 10.0% a year over the last 4 years, versus 1.6% for QUAL.
- Size. QUAL is the larger fund with $48.6 billion in assets, against $1.9 billion for VFMO.
Bottom line: VFMO has the edge on these figures, with faster dividend growth and broader diversification. QUAL does not lead on any of the measures compared here.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | VFMO Vanguard U.S. Momentum Factor ETF | QUAL iShares MSCI USA Quality Factor ETF |
|---|---|---|
| Dividend yield (TTM) | 0.61% | 0.84% |
| Dividend / share (TTM) | $1.36 | $1.89 |
| Payout frequency | Quarterly | Quarterly |
| Last dividend | $0.3074 on Sep 25, 2026 | $0.4727 on Sep 18, 2026 |
| Ex-dividend date | Sep 23, 2026 | Sep 15, 2026 |
| Dividend growth (CAGR) | 10.0% over 4 yrs | 1.6% over 4 yrs |
| Price | $220.63 | $225.69 |
| Dividend growth streak | 2 years | 2 years |
| Beta | 1.32 | 0.90 |
| Max drawdown (5Y) | -25.8% | -28.2% |
| Market cap | $1.90B | $48.40B |
| Exchange | CBOE | CBOE |
| Expense ratio | 0.13% | 0.15% |
| Assets under management | $1.90B | $48.61B |
| Number of holdings | 638 | 118 |
| Top 10 concentration | 10.9% | 45.1% |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
VFMO
$5.12/mo
$61 /yr at 0.61% yield
QUAL
$6.98/mo
$84 /yr at 0.84% yield
Dividend history
Total dividends paid per share in each calendar year. VFMO pays quarterly; QUAL pays quarterly.
| Year | VFMO | QUAL |
|---|---|---|
| 2025 | $1.5700 | $1.8588 |
| 2024 | $1.1884 | $1.9073 |
| 2023 | $1.1663 | $1.7090 |
| 2022 | $1.9669 | $1.8144 |
| 2021 | $1.0724 | $1.7441 |
Strategy: Factor and momentum
Rules-based funds that tilt toward a single trait linked to long-run returns, such as momentum, quality or low volatility. Momentum funds rebalance into recent winners, quality funds favor high profitability and strong balance sheets, and low-volatility funds pick the steadiest stocks. The same label can hide very different rules, so the index methodology matters more than the name.
Factor tilts go through long dry spells, and momentum funds can turn over quickly and get caught out when market leadership changes.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $17,048 in VFMO and $17,151 in QUAL.
| Period | VFMO | QUAL |
|---|---|---|
| 1 month | -2.94% | 2.97% |
| 3 months | -3.25% | 4.25% |
| Year to date | 15.36% | 14.32% |
| 1 year | 12.45% | 16.43% |
| 3 years | 107.63% | 76.89% |
| 5 years | 70.48% | 71.51% |
- VFMO
- QUAL
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
- VFMO
- QUAL
VFMO vs QUAL holdings overlap
At least 9% overlap by weight, with 14 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
| Largest shared holdings | VFMO weight | QUAL weight |
|---|---|---|
| KLACKLA Corp | 1.24% | 2.20% |
| AMATApplied Materials Inc | 1.22% | 2.47% |
| LRCXLam Research Corp | 1.02% | 3.18% |
| GOOGLAlphabet Inc | 0.75% | 1.94% |
| JNJJohnson & Johnson | 0.71% | 2.00% |
| HWMHowmet Aerospace Inc | 0.68% | 0.63% |
| MRKMerck & Co Inc | 0.62% | 1.35% |
| XOMExxon Mobil Corp | 0.52% | 2.45% |
| GOOGAlphabet Inc | 0.48% | 1.52% |
| ROSTRoss Stores Inc | 0.29% | 1.45% |
Top 10 holdings
Largest positions by portfolio weight.
VFMO638 holdings total
Quick verdict
VFMO has the edge on these figures, with faster dividend growth and broader diversification. QUAL does not lead on any of the measures compared here. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
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Frequently asked questions
Is VFMO or QUAL better for dividend income?
It depends on your goals. VFMO currently yields 0.61% Trailing Twelve Months (TTM) while QUAL yields 0.84%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between VFMO and QUAL?
Vanguard U.S. Momentum Factor ETF (VFMO) is an ETF listed on CBOE. iShares MSCI USA Quality Factor ETF (QUAL) is an ETF listed on CBOE. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, VFMO or QUAL?
VFMO has the lower expense ratio. VFMO charges 0.13% a year and QUAL charges 0.15%, a difference of $2 a year on a $10,000 investment.
Which has performed better, VFMO or QUAL?
Over the last 5 years, QUAL has the higher total return with dividends reinvested: VFMO returned 70.5% and QUAL returned 71.5%. Past performance does not predict future returns.
Which is riskier, VFMO or QUAL?
Measured by the worst peak-to-trough decline over the last five years, QUAL has been riskier: VFMO fell as much as 25.8% and QUAL as much as 28.2%. Their betas are 1.32 and 0.90.
How much do VFMO and QUAL overlap?
At least 9% of the two portfolios overlap by weight, across 14 shared holdings. The largest shared positions are KLAC, AMAT, LRCX. Holding both still adds meaningful diversification.
How often do VFMO and QUAL pay dividends?
Both pay quarterly. The most recent payments were $0.3074 for VFMO and $0.4727 for QUAL.
How much income does $10,000 in VFMO vs QUAL generate?
At current TTM yields, $10,000 in VFMO would generate roughly $5.12 per month ($61 annually). The same amount in QUAL would produce about $6.98 per month ($84 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both VFMO and QUAL?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare VFMO vs QUAL with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how VFMO and QUAL fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.