QLC vs VONV

QLCBNorthern Trust US Quality Large Cap ETF

VONVAVanguard Russell 1000 Value ETF

In short

QLC One optimizer, three factors. QLC chases quality, value and momentum together, then boxes its sector, industry and beta bets close to the large-cap universe. Running since 2015 on Northern Trust's in-house quality model.

VONV The plain-vanilla value trade, done cheap: about 900 large US value stocks, full replication of the Russell 1000 Value Index, 0.06% a year. No factor cocktail, no premium price tag, and one of the strongest implementations in its factor peer group.

Stated mandate

QLC The Fund seeks to track the price and yield performance of the Northern Trust Quality Large Cap Index before fees and expenses.

VONV The fund seeks to track the Russell 1000 Value Index, representing large-capitalization value stocks in the United States. It uses passive indexing and full replication to remain closely aligned with that benchmark.

Why people hold it

• QLC Quality has a definition here: a proprietary Northern Trust model scores profitability, management efficiency and cash flow, then an optimizer blends it with value and momentum.northerntrust.com
• Guardrails are written into the index rules: sector and industry weights within 3 points of the eligible universe, beta within 5%, turnover capped. The tilt stays a tilt.northerntrust.com
• 0.25% net of a waiver through March 1, 2027 (0.26% gross) sits near the category median, and the fund has hugged its index closely rather than drifting from it.
• Live since 2015, a multi-billion-dollar fund paying quarterly, and one of the stronger builds in a crowded multifactor field.

• VONV 0.06% a year, a fraction of the typical fee among factor ETFs. On a rules-based value index there is little room for cleverness, so cost does most of the work.vanguard.com
• Full replication, not sampling: it owns the index's roughly 900 names and has stayed tightly aligned with the Russell 1000 Value benchmark since launching in 2010.
• Same Russell benchmark as pricier rivals for less: the Goldman MarketBeta version (GVUS) charges 0.12% to track the identical value index.
• A multi-billion-dollar fund that trades actively, among the easiest in its group to get in and out of, and it distributes quarterly.

Worth knowing

• QLC Plain-vanilla factor rivals cost far less: VYM at 0.04%, VONV at 0.06%, LRGF at 0.08%. The spread is what the quality model costs.
• Not one of the heavily traded names in its category, so spreads can run wider than the giants'. Order type matters more here.
• About 160 stocks is a slimmer roster than a broad large-cap index, so individual names and the optimizer's choices carry more weight.northerntrust.com

• VONV One screen, one style. Value only, with no quality or momentum overlay, so the ride follows the value side of the market wherever it goes.vanguard.com
• This is the entire value bucket, not a best-ideas portfolio. About 900 holdings means results hug the large-cap value category rather than stray from it.
• Cheaper exists nearby: Vanguard's VYM charges 0.04%, but it screens for dividend yield, a different portfolio than a Russell value index.

Full QLC profile⁠

Full VONV profile⁠