IQDF vs. ESG

Last updated Jun 4, 2026

IQDF (FlexShares International Quality Dividend Index Fund) and ESG (FlexShares STOXX US ESG Select Index Fund) are both exchange-traded funds - IQDF is a Foreign Large Cap Equities fund tracking the Northern Trust International Quality Dividend Index, while ESG is a Large Cap Growth Equities fund tracking the STOXX USA ESG Select KPIs Index. Both are passively managed. Over the past 5 years, IQDF returned 10.43%/yr vs 12.73%/yr for ESG. A 0.67 correlation means they provide meaningful diversification when combined. IQDF charges 0.47%/yr vs 0.32%/yr for ESG.

Performance

IQDF vs. ESG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares International Quality Dividend Index Fund (IQDF) and FlexShares STOXX US ESG Select Index Fund (ESG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IQDF achieves a 15.38% return, which is significantly higher than ESG's 12.20% return.

IQDF

• 1D: -1.02%
• 1M: 5.16%
• YTD: 15.38%
• 6M: 18.18%
• 1Y: 35.90%
• 3Y*: 22.80%
• 5Y*: 10.43%
• 10Y*: 9.66%

ESG

• 1D: -0.45%
• 1M: 7.28%
• YTD: 12.20%
• 6M: 13.15%
• 1Y: 25.90%
• 3Y*: 20.72%
• 5Y*: 12.73%
• 10Y*: —

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

IQDF vs. ESG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IQDF FlexShares International Quality Dividend Index Fund	15.38%	35.42%	6.62%	20.10%	-14.69%	10.18%	3.54%	20.96%	-17.39%	23.87%
ESG FlexShares STOXX US ESG Select Index Fund	12.20%	16.04%	20.22%	27.86%	-19.89%	28.48%	20.75%	31.74%	-5.17%	22.78%

Correlation

The correlation between IQDF and ESG is 0.75, 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	0.75
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.72
Correlation (All Time) Calculated using the full available price history since Jul 15, 2016	0.67

The correlation between IQDF and ESG has been stable across timeframes, ranging from 0.67 to 0.75 - a consistent structural relationship.

IQDF vs. ESG - Sectors Allocation Comparison

Sectors	IQDF	ESG
Financial Services	25.9%	16.9%
Technology	15.6%	36.7%
Industrials	13.2%	4.5%
Basic Materials	8.3%	3.0%
Energy	7.2%	3.1%
Consumer Cyclical	6.9%	10.0%
Healthcare	6.0%	11.2%
Consumer Defensive	5.7%	9.2%
Communication Services	4.9%	1.0%
Utilities	3.9%	0.7%
Real Estate	2.3%	2.7%

Return for Risk

IQDF vs. ESG — Risk / Return Rank

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

IQDF

IQDF Risk / Return Rank: 74
IQDF Sharpe Ratio Rank: 76
IQDF Sortino Ratio Rank: 73
IQDF Omega Ratio Rank: 73
IQDF Calmar Ratio Rank: 72
IQDF Martin Ratio Rank: 73

ESG

ESG Risk / Return Rank: 67
ESG Sharpe Ratio Rank: 70
ESG Sortino Ratio Rank: 70
ESG Omega Ratio Rank: 67
ESG Calmar Ratio Rank: 60
ESG Martin Ratio Rank: 70

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.

IQDF vs. ESG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares International Quality Dividend Index Fund (IQDF) and FlexShares STOXX US ESG Select Index Fund (ESG). 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.

	IQDF	ESG	Difference
Sharpe ratio: Return per unit of total volatility	2.50	2.33	+0.17
Sortino ratio: Return per unit of downside risk	3.35	3.23	+0.12
Omega ratio: Gain probability vs. loss probability	1.44	1.41	+0.03
Calmar ratio: Return relative to maximum drawdown	3.60	3.00	+0.60
Martin ratio: Return relative to average drawdown	13.93	13.02	+0.91
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IQDF vs. ESG - Sharpe Ratio Comparison

The current IQDF Sharpe Ratio is 2.50, which is comparable to the ESG Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of IQDF and ESG, 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

	IQDF	ESG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.50	2.33	+0.17
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.68	0.76	-0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.44	0.83	-0.39

Drawdowns

IQDF vs. ESG - Drawdown Comparison

The maximum IQDF drawdown since its inception was -39.83%, which is greater than ESG's maximum drawdown of -32.53%. Use the drawdown chart below to compare losses from any high point for IQDF and ESG.

Drawdown Indicators

	IQDF	ESG	Difference
Max Drawdown Largest peak-to-trough decline	-39.83%	-32.53%	-7.30%
Max Drawdown (1Y) Largest decline over 1 year	-10.03%	-8.68%	-1.35%
Max Drawdown (3Y) Largest decline over 3 years	-13.92%	-18.32%	+4.40%
Max Drawdown (5Y) Largest decline over 5 years	-30.34%	-26.04%	-4.30%
Max Drawdown (10Y) Largest decline over 10 years	-39.83%	—	—
Current Drawdown Current decline from peak	-1.02%	-0.45%	-0.57%
Average Drawdown Average peak-to-trough decline	-9.34%	-5.07%	-4.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.58%	1.99%	+0.59%

Volatility

IQDF vs. ESG - Volatility Comparison

FlexShares International Quality Dividend Index Fund (IQDF) has a higher volatility of 5.63% compared to FlexShares STOXX US ESG Select Index Fund (ESG) at 2.94%. This indicates that IQDF's price experiences larger fluctuations and is considered to be riskier than ESG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IQDF	ESG	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.63%	2.94%	+2.69%
Volatility (6M) Calculated over the trailing 6-month period	12.23%	8.46%	+3.77%
Volatility (1Y) Calculated over the trailing 1-year period	14.44%	11.16%	+3.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.49%	16.73%	-1.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.63%	18.36%	-1.73%

IQDF vs. ESG - Expense Ratio Comparison

IQDF has a 0.47% expense ratio, which is higher than ESG's 0.32% expense ratio.

Dividends

IQDF vs. ESG - Dividend Comparison

IQDF's dividend yield for the trailing twelve months is around 2.77%, more than ESG's 0.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ESG FlexShares STOXX US ESG Select Index Fund	0.87%	0.96%	1.18%	1.10%	1.38%	1.03%	1.33%	1.51%	1.72%	1.52%	0.92%	0.00%
IQDF FlexShares International Quality Dividend Index Fund	2.77%	3.27%	6.72%	6.06%	5.59%	4.13%	3.31%	4.46%	5.78%	3.89%	3.75%	4.27%

Frequently Asked Questions

Can I hold both IQDF and ESG in my portfolio?

IQDF and ESG have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IQDF or ESG?

IQDF has higher volatility (5.63%) compared to ESG (2.94%). In terms of maximum drawdown, IQDF dropped -39.83% vs ESG's -32.53%.

Which ETF is better, IQDF or ESG?

On 5-year performance, ESG leads with 12.73% vs 10.43% for IQDF. On fees, ESG is cheaper at 0.32% per year. On volatility, ESG has been the lower-risk option at 2.94%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IQDF or ESG?

Over the 5-year period, ESG has performed better with a 12.73% return vs 10.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IQDF or ESG?

ESG is cheaper with a 0.32% expense ratio, compared with 0.47% for IQDF.

Which ETF pays a higher dividend yield, IQDF or ESG?

IQDF has the higher dividend yield at 2.77%, compared with 0.87% for ESG.

What is the main difference between IQDF and ESG?

IQDF is categorized as Foreign Large Cap Equities, while ESG is Large Cap Growth Equities. IQDF tracks Northern Trust International Quality Dividend Index, while ESG tracks STOXX USA ESG Select KPIs Index. Their fees differ too: 0.47% for IQDF and 0.32% for ESG.

Which has better risk-adjusted returns?

IQDF currently has the higher Sharpe Ratio (2.50 vs 2.33), 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.