QUAL vs RSXJ Fund Comparison

A comparison between QUAL and RSXJ based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on QUAL vs RSXJ

Here's an in depth look at the differences between iShares Edge MSCI USA Quality Factor ETF ($QUAL) and VanEck Vectors Russia Small-Cap ETF ($RSXJ).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

90% FI Score
  • qual
  • ETF
  • US Stocks
  • Large Blend

iShares Edge MSCI USA Quality Factor ETF

Expenses: 0.15% (Better than 1% of similar funds)

This is a great choice for a Large Blend US Stocks fund. See why »

34% FI Score
  • rsxj
  • ETF
  • International Stocks
  • Other Region

VanEck Vectors Russia Small-Cap ETF

Expenses: 0.77% (Better than 0% of similar funds)

This is a bad choice for a Other Region International Stocks fund. See why »

Both $QUAL and $RSXJ are categorized as ETFs. ETFs have an added bonus over mutual funds of being more widely available. Mutual funds are often limited to only the issuing investment brokerage. Since these are both ETFs, you may be able to find these at a wider number of investment apps and websites.

The biggest disadvantage of ETFs is that some platforms only allow you to purchase ETFs in whole shares. So if an ETF is going for $75, you may need to invest in increments of $75. Most 401(k)'s allow for investing down to the penny, but you'll want to verify your platform allows for "fractional ETF Shares".

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

QUAL RSXJ
Market Score 9.4 /10 4.1 /10
Category Score 10.0 /10 5.0 /10
Total 19.4 9.1

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

For each fund we've created a "diversification score" – a metric to indicate how closely each funds asset allocation matches it's benchmark. For example, an S&P 500 fund would have a diversification score of 10 if it's fully in line with the actual S&P 500.

The diversification score for QUAL is 8.5/10, while RSXJ has a diversification score of 0.0/10.

In other words, QUAL more closely matches it's benchmark.

Winner: $QUAL

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, QUAL has an expense ratio of 0.15% while RSXJ has an expense ratio of 0.77%.

Winner: $QUAL

Fund Size Comparison

One place these two funds differ is in their total assets under management. This is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

In the case of these two funds, QUAL is a large fund with 18.2 Billion in assets under management. RSXJ, on the other hand, is a small fund with 27.2 Million in assets under management.

Winner: $QUAL, iShares Edge MSCI USA Quality Factor ETF

Which Should You Choose? QUAL or RSXJ?

Comparing these two funds isn't an apples to apples comparison. QUAL is a US Stocks Large Blend fund, while RSXJ is a International Stocks Other Region fund.

If you're aiming to build a diversified, low-fee, tax-optimized portfolio you likely won't be choosing between these two funds since they're different enough.

Running both of these funds through Minafi's FI Score algorithm, gives QUAL a score of 90 and RSXJ a score of 34.

Winner: $QUAL, iShares Edge MSCI USA Quality Factor ETF

$QUAL

iShares Edge MSCI USA Quality Factor ETF

90

Read More
Ratings
Rating Type Rating
Diversification Score 8 /10
Expense Ratio Score 9 /10
Expense Rating 9 /10
Market Score 9 /10
Category Score 10 /10
Overview
Overview Details
Fund Type ETF
Inception Date Jul-16-2013
Exchange BATS
Expense Ratio 0.150%
Net Assets 18.2 Billion
Yield 1.74%
Holdings
Description Info
Market US Stocks
Category Large Blend
Sectors
  • Basic Materials 2.16%
  • Communication Services 10.94%
  • Consumer Cyclicals 10.99%
  • Consumer Defensive 7.00%
  • Energy 2.77%
  • Financial Services 16.31%
  • Healthcare 14.50%
  • Industrials 9.19%
  • Real Estate 3.12%
  • Technology 19.88%
  • Utilities 3.13%
Regions
  • Asia Developed 0.11%
  • Europe Developed 0.27%
  • North America 99.62%

$RSXJ

VanEck Vectors Russia Small-Cap ETF

34

Read More
Ratings
Rating Type Rating
Diversification Score 0 /10
Expense Ratio Score 3 /10
Expense Rating 2 /10
Market Score 4 /10
Category Score 5 /10
Overview
Overview Details
Fund Type ETF
Inception Date Mar-12-2018
Exchange NYSE ARCA
Expense Ratio 0.770%
Net Assets 27.2 Million
Yield 5.67%
Holdings
Description Info
Market International Stocks
Category Other Region
Sectors
  • Basic Materials 15.16%
  • Communication Services 9.86%
  • Consumer Cyclicals 9.76%
  • Consumer Defensive 0.00%
  • Energy 0.00%
  • Financial Services 15.63%
  • Healthcare 0.00%
  • Industrials 24.39%
  • Real Estate 9.13%
  • Technology 0.00%
  • Utilities 16.08%
Regions
  • Europe Developed 3.33%
  • Europe Emerging 82.96%
  • United Kingdom 13.71%

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