GARP vs. QDEF

Last updated Aug 2, 2026

GARP (iShares MSCI USA Quality GARP ETF) and QDEF (FlexShares Quality Dividend Defensive Index Fund) are both Quality Factor funds - GARP tracks the MSCI USA Quality GARP Select Index while QDEF tracks the Northern Trust Quality Dividend Defensive Index. Both are passively managed. Over the past 5 years, GARP returned 17.48%/yr vs 12.34%/yr for QDEF. Their 0.78 correlation means they have sometimes moved together and sometimes differently. GARP charges 0.15%/yr vs 0.37%/yr for QDEF.

Performance

GARP vs. QDEF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Quality GARP ETF (GARP) 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, GARP achieves a 16.89% return, which is significantly higher than QDEF's 10.48% return.

GARP

• 1D: 0.66%
• 1M: -1.22%
• 6M: 14.45%
• YTD: 16.89%
• 1Y: 31.75%
• 3Y*: 28.85%
• 5Y*: 17.48%
• 10Y*: —
• ALL TIME*: 20.07%

QDEF

• 1D: -0.05%
• 1M: 1.68%
• 6M: 8.64%
• YTD: 10.48%
• 1Y: 20.97%
• 3Y*: 17.66%
• 5Y*: 12.34%
• 10Y*: 12.14%
• ALL TIME*: 12.72%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
GARP iShares MSCI USA Quality GARP ETF	$25.65M	$25.43M	$23.00M
QDEF FlexShares Quality Dividend Defensive Index Fund	$546.87K	$522.47K	$732.31K

GARP vs. QDEF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
GARP iShares MSCI USA Quality GARP ETF	16.89%	21.49%	37.42%	42.86%	-26.75%	27.99%	26.51%
QDEF FlexShares Quality Dividend Defensive Index Fund	10.48%	17.43%	21.19%	17.48%	-10.94%	26.04%	2.25%

Correlation

The correlation between GARP and QDEF is 0.73, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.73
Correlation (3Y) Balances recent behavior with more history.	0.77
Correlation (5Y) Shows whether the relationship held over a longer period.	0.82
Correlation (All Time) Calculated using the full available price history since Jan 16, 2020	0.78

The correlation between GARP and QDEF has been stable across timeframes, ranging from 0.73 to 0.82 - a consistent structural relationship.

GARP vs. QDEF - Sectors Allocation Comparison

Sectors	GARP	QDEF
Technology	54.7%	35.6%
Communication Services	11.0%	5.8%
Consumer Cyclical	9.1%	7.3%
Financial Services	7.9%	11.7%
Industrials	6.4%	5.5%
Healthcare	5.4%	10.5%
Energy	3.0%	4.2%
Utilities	1.3%	3.6%
Basic Materials	1.1%	3.5%
Real Estate	0.4%	3.9%
Consumer Defensive	-	7.3%

Return for Risk

GARP vs. QDEF — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

GARP

GARP Risk / Return Rank: 64
GARP Sharpe Ratio Rank: 66
GARP Sortino Ratio Rank: 62
GARP Omega Ratio Rank: 60
GARP Calmar Ratio Rank: 63
GARP Martin Ratio Rank: 66

QDEF

QDEF Risk / Return Rank: 85
QDEF Sharpe Ratio Rank: 87
QDEF Sortino Ratio Rank: 87
QDEF Omega Ratio Rank: 87
QDEF Calmar Ratio Rank: 81
QDEF Martin Ratio Rank: 86

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

GARP vs. QDEF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality GARP ETF (GARP) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	GARP	QDEF	Difference
Sharpe ratio: Return per unit of total volatility	1.50	2.07	-0.56
Sortino ratio: Return per unit of downside risk	2.08	2.94	-0.86
Omega ratio: Gain probability vs. loss probability	1.26	1.38	-0.12
Calmar ratio: Return relative to maximum drawdown	2.19	2.93	-0.73
Martin ratio: Return relative to average drawdown	7.99	12.20	-4.20

GARP vs. QDEF - Sharpe Ratio Comparison

The current GARP Sharpe Ratio is 1.50, which is comparable to the QDEF Sharpe Ratio of 2.07. The chart below compares the historical Sharpe Ratios of GARP 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.

Drawdowns

GARP vs. QDEF - Drawdown Comparison

The maximum GARP drawdown since its inception was -31.34%, smaller than the maximum QDEF drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for GARP and QDEF.

Drawdown Indicators

	GARP	QDEF	Difference
Max Drawdown Largest peak-to-trough decline	-31.34%	-35.74%	+4.40%
Max Drawdown (1Y) Largest decline over 1 year	-13.69%	-6.95%	-6.74%
Max Drawdown (3Y) Largest decline over 3 years	-23.73%	-14.43%	-9.30%
Max Drawdown (5Y) Largest decline over 5 years	-30.61%	-21.37%	-9.24%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.74%	—
Current Drawdown Current decline from peak	-4.34%	-0.58%	-3.76%
Average Drawdown Average peak-to-trough decline	-7.27%	-3.27%	-4.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.75%	1.67%	+2.08%

Volatility

GARP vs. QDEF - Volatility Comparison

iShares MSCI USA Quality GARP ETF (GARP) has a higher volatility of 5.68% compared to FlexShares Quality Dividend Defensive Index Fund (QDEF) at 2.29%. This indicates that GARP'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

	GARP	QDEF	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.68%	2.29%	+3.39%
Volatility (6M) Calculated over the trailing 6-month period	16.18%	7.47%	+8.71%
Volatility (1Y) Calculated over the trailing 1-year period	20.02%	9.85%	+10.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.34%	13.77%	+8.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.92%	16.14%	+7.78%

GARP vs. QDEF - Expense Ratio Comparison

GARP has a 0.15% expense ratio, which is lower than QDEF's 0.37% expense ratio.

Dividends

GARP vs. QDEF - Dividend Comparison

GARP's dividend yield for the trailing twelve months is around 0.27%, less than QDEF's 1.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GARP iShares MSCI USA Quality GARP ETF	0.27%	0.31%	0.38%	0.75%	1.85%	0.67%	0.75%	0.00%	0.00%	0.00%	0.00%	0.00%
QDEF FlexShares Quality Dividend Defensive Index Fund	1.58%	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 GARP and QDEF in my portfolio?

GARP and QDEF have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GARP or QDEF?

GARP has higher volatility (5.68%) compared to QDEF (2.29%). In terms of maximum drawdown, GARP dropped -31.34% vs QDEF's -35.74%.

Which ETF is better, GARP or QDEF?

On 5-year performance, GARP leads with 17.48% vs 12.34% for QDEF. On fees, GARP is cheaper at 0.15% per year. On volatility, QDEF has been the lower-risk option at 2.29%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, GARP or QDEF?

Over the 5-year period, GARP has performed better with a 17.48% return vs 12.34%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, GARP or QDEF?

GARP is cheaper with a 0.15% expense ratio, compared with 0.37% for QDEF.

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

QDEF has the higher dividend yield at 1.58%, compared with 0.27% for GARP.

What is the main difference between GARP and QDEF?

GARP tracks MSCI USA Quality GARP Select Index, while QDEF tracks Northern Trust Quality Dividend Defensive Index. They also come from different issuers: iShares and FlexShares. Their fees differ too: 0.15% for GARP and 0.37% for QDEF.

Which has better risk-adjusted returns?

QDEF currently has the higher Sharpe Ratio (2.07 vs 1.50), 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.