FEDM vs. QDEF

Last updated Jun 4, 2026

FEDM (FlexShares ESG & Climate Developed Markets ex-US Core Index Fund) and QDEF (FlexShares Quality Dividend Defensive Index Fund) are both exchange-traded funds - FEDM is a Foreign Large Cap Equities fund tracking the Northern Trust ESG & Climate Developed Markets ex-US Core Index - Benchmark TR Net, while QDEF is a Large Cap Value Equities fund tracking the Northern Trust Quality Dividend Defensive Index. Both are passively managed. Over the past 3 years, FEDM returned 13.99%/yr vs 19.60%/yr for QDEF. A 0.75 correlation means they provide meaningful diversification when combined. FEDM charges 0.12%/yr vs 0.37%/yr for QDEF.

Performance

FEDM vs. QDEF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (FEDM) and FlexShares Quality Dividend Defensive Index Fund (QDEF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FEDM achieves a 6.03% return, which is significantly lower than QDEF's 8.81% return.

FEDM

• 1D: -0.91%
• 1M: 3.29%
• YTD: 6.03%
• 6M: 8.22%
• 1Y: 16.39%
• 3Y*: 13.99%
• 5Y*: —
• 10Y*: —

QDEF

• 1D: -0.47%
• 1M: 3.94%
• YTD: 8.81%
• 6M: 8.87%
• 1Y: 23.31%
• 3Y*: 19.60%
• 5Y*: 12.64%
• 10Y*: 12.34%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FEDM vs. QDEF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
FEDM FlexShares ESG & Climate Developed Markets ex-US Core Index Fund	6.03%	26.85%	2.85%	17.39%	-15.25%	1.87%
QDEF FlexShares Quality Dividend Defensive Index Fund	8.81%	17.43%	21.19%	17.48%	-10.94%	10.74%

Correlation

The correlation between FEDM and QDEF is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.70
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (All Time) Calculated using the full available price history since Sep 22, 2021	0.75

The correlation between FEDM and QDEF has been stable across timeframes, ranging from 0.70 to 0.75 - a consistent structural relationship.

FEDM vs. QDEF - Sectors Allocation Comparison

Sectors	FEDM	QDEF
Financial Services	27.1%	11.5%
Industrials	17.8%	6.7%
Technology	10.9%	32.8%
Healthcare	10.0%	11.4%
Consumer Defensive	7.1%	7.4%
Basic Materials	5.9%	3.0%
Energy	5.7%	4.0%
Consumer Cyclical	5.7%	7.3%
Communication Services	4.6%	7.7%
Utilities	3.5%	2.9%
Real Estate	1.8%	5.4%

Return for Risk

FEDM vs. QDEF — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FEDM

FEDM Risk / Return Rank: 29
FEDM Sharpe Ratio Rank: 28
FEDM Sortino Ratio Rank: 28
FEDM Omega Ratio Rank: 28
FEDM Calmar Ratio Rank: 28
FEDM Martin Ratio Rank: 33

QDEF

QDEF Risk / Return Rank: 73
QDEF Sharpe Ratio Rank: 74
QDEF Sortino Ratio Rank: 76
QDEF Omega Ratio Rank: 75
QDEF Calmar Ratio Rank: 67
QDEF Martin Ratio Rank: 76

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FEDM vs. QDEF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (FEDM) and FlexShares Quality Dividend Defensive Index Fund (QDEF). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	FEDM	QDEF	Difference
Sharpe ratio: Return per unit of total volatility	1.02	2.44	-1.42
Sortino ratio: Return per unit of downside risk	1.54	3.46	-1.91
Omega ratio: Gain probability vs. loss probability	1.19	1.45	-0.26
Calmar ratio: Return relative to maximum drawdown	1.38	3.37	-1.99
Martin ratio: Return relative to average drawdown	4.97	14.62	-9.65
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FEDM vs. QDEF - Sharpe Ratio Comparison

The current FEDM Sharpe Ratio is 1.02, which is lower than the QDEF Sharpe Ratio of 2.44. The chart below compares the historical Sharpe Ratios of FEDM and QDEF, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FEDM	QDEF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.02	2.44	-1.42
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.92	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.77	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.46	0.84	-0.39

Drawdowns

FEDM vs. QDEF - Drawdown Comparison

The maximum FEDM drawdown since its inception was -29.37%, smaller than the maximum QDEF drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for FEDM and QDEF.

Drawdown Indicators

	FEDM	QDEF	Difference
Max Drawdown Largest peak-to-trough decline	-29.37%	-35.74%	+6.37%
Max Drawdown (1Y) Largest decline over 1 year	-11.92%	-6.95%	-4.97%
Max Drawdown (3Y) Largest decline over 3 years	-14.24%	-14.43%	+0.19%
Max Drawdown (5Y) Largest decline over 5 years	—	-21.37%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-35.74%	—
Current Drawdown Current decline from peak	-2.01%	-0.47%	-1.54%
Average Drawdown Average peak-to-trough decline	-6.99%	-3.29%	-3.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.30%	1.60%	+1.70%

Volatility

FEDM vs. QDEF - Volatility Comparison

FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (FEDM) has a higher volatility of 4.78% compared to FlexShares Quality Dividend Defensive Index Fund (QDEF) at 2.31%. This indicates that FEDM's price experiences larger fluctuations and is considered to be riskier than QDEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FEDM	QDEF	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.78%	2.31%	+2.47%
Volatility (6M) Calculated over the trailing 6-month period	12.44%	7.16%	+5.28%
Volatility (1Y) Calculated over the trailing 1-year period	16.14%	9.62%	+6.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.46%	13.78%	+2.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.46%	16.17%	+0.29%

FEDM vs. QDEF - Expense Ratio Comparison

FEDM has a 0.12% expense ratio, which is lower than QDEF's 0.37% expense ratio.

Dividends

FEDM vs. QDEF - Dividend Comparison

FEDM's dividend yield for the trailing twelve months is around 2.82%, more than QDEF's 1.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FEDM FlexShares ESG & Climate Developed Markets ex-US Core Index Fund	2.82%	2.97%	2.94%	2.61%	2.53%	0.62%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
QDEF FlexShares Quality Dividend Defensive Index Fund	1.59%	1.74%	1.85%	2.21%	2.42%	1.84%	2.50%	3.17%	7.10%	2.70%	2.90%	3.00%

Frequently Asked Questions

Can I hold both FEDM and QDEF in my portfolio?

FEDM and QDEF have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FEDM or QDEF?

FEDM has higher volatility (4.78%) compared to QDEF (2.31%). In terms of maximum drawdown, FEDM dropped -29.37% vs QDEF's -35.74%.

Which ETF is better, FEDM or QDEF?

On 3-year performance, QDEF leads with 19.60% vs 13.99% for FEDM. On fees, FEDM is cheaper at 0.12% per year. On volatility, QDEF has been the lower-risk option at 2.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FEDM or QDEF?

Over the 3-year period, QDEF has performed better with a 19.60% return vs 13.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FEDM or QDEF?

FEDM is cheaper with a 0.12% expense ratio, compared with 0.37% for QDEF.

Which ETF pays a higher dividend yield, FEDM or QDEF?

FEDM has the higher dividend yield at 2.82%, compared with 1.59% for QDEF.

What is the main difference between FEDM and QDEF?

FEDM is categorized as Foreign Large Cap Equities, while QDEF is Large Cap Value Equities. FEDM tracks Northern Trust ESG & Climate Developed Markets ex-US Core Index - Benchmark TR Net, while QDEF tracks Northern Trust Quality Dividend Defensive Index. Their fees differ too: 0.12% for FEDM and 0.37% for QDEF.

Which has better risk-adjusted returns?

QDEF currently has the higher Sharpe Ratio (2.44 vs 1.02), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.