IQDF vs. VEA

Last updated Jun 4, 2026

IQDF (FlexShares International Quality Dividend Index Fund) and VEA (Vanguard FTSE Developed Markets ETF) are both Foreign Large Cap Equities funds - IQDF tracks the Northern Trust International Quality Dividend Index while VEA tracks the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, IQDF returned 9.66%/yr vs 10.17%/yr for VEA. Their correlation of 0.94 suggests significant overlap in exposure. IQDF charges 0.47%/yr vs 0.03%/yr for VEA.

Performance

IQDF vs. VEA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares International Quality Dividend Index Fund (IQDF) and Vanguard FTSE Developed Markets ETF (VEA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with IQDF having a 15.38% return and VEA slightly lower at 14.92%. Over the past 10 years, IQDF has underperformed VEA with an annualized return of 9.66%, while VEA has yielded a comparatively higher 10.17% annualized 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%

VEA

• 1D: -0.90%
• 1M: 5.54%
• YTD: 14.92%
• 6M: 18.15%
• 1Y: 32.48%
• 3Y*: 19.77%
• 5Y*: 9.60%
• 10Y*: 10.17%

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

IQDF vs. VEA - 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%
VEA Vanguard FTSE Developed Markets ETF	14.92%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%

Correlation

The correlation between IQDF and VEA is 0.95, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Apr 17, 2013	0.94

The correlation between IQDF and VEA has been stable across timeframes, ranging from 0.94 to 0.95 - a consistent structural relationship.

IQDF vs. VEA - Sectors Allocation Comparison

Sectors	IQDF	VEA
Financial Services	25.9%	23.3%
Technology	15.6%	13.8%
Industrials	13.2%	19.2%
Basic Materials	8.3%	7.5%
Energy	7.2%	5.4%
Consumer Cyclical	6.9%	7.5%
Healthcare	6.0%	8.2%
Consumer Defensive	5.7%	5.6%
Communication Services	4.9%	3.4%
Utilities	3.9%	3.3%
Real Estate	2.3%	2.7%

Return for Risk

IQDF vs. VEA — 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

VEA

VEA Risk / Return Rank: 59
VEA Sharpe Ratio Rank: 60
VEA Sortino Ratio Rank: 60
VEA Omega Ratio Rank: 60
VEA Calmar Ratio Rank: 55
VEA Martin Ratio Rank: 60

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. VEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares International Quality Dividend Index Fund (IQDF) and Vanguard FTSE Developed Markets ETF (VEA). 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	VEA	Difference
Sharpe ratio: Return per unit of total volatility	2.50	2.09	+0.42
Sortino ratio: Return per unit of downside risk	3.35	2.87	+0.48
Omega ratio: Gain probability vs. loss probability	1.44	1.38	+0.07
Calmar ratio: Return relative to maximum drawdown	3.60	2.81	+0.79
Martin ratio: Return relative to average drawdown	13.93	10.94	+2.98
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. VEA - Sharpe Ratio Comparison

The current IQDF Sharpe Ratio is 2.50, which is comparable to the VEA Sharpe Ratio of 2.09. The chart below compares the historical Sharpe Ratios of IQDF and VEA, 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	VEA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.50	2.09	+0.42
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.68	0.58	+0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	0.59	-0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.44	0.25	+0.20

Drawdowns

IQDF vs. VEA - Drawdown Comparison

The maximum IQDF drawdown since its inception was -39.83%, smaller than the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for IQDF and VEA.

Drawdown Indicators

	IQDF	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-39.83%	-60.68%	+20.85%
Max Drawdown (1Y) Largest decline over 1 year	-10.03%	-11.63%	+1.60%
Max Drawdown (3Y) Largest decline over 3 years	-13.92%	-13.45%	-0.47%
Max Drawdown (5Y) Largest decline over 5 years	-30.34%	-29.71%	-0.63%
Max Drawdown (10Y) Largest decline over 10 years	-39.83%	-35.73%	-4.10%
Current Drawdown Current decline from peak	-1.02%	-0.90%	-0.12%
Average Drawdown Average peak-to-trough decline	-9.34%	-13.29%	+3.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.58%	2.98%	-0.40%

Volatility

IQDF vs. VEA - Volatility Comparison

FlexShares International Quality Dividend Index Fund (IQDF) and Vanguard FTSE Developed Markets ETF (VEA) have volatilities of 5.63% and 5.66%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IQDF	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.63%	5.66%	-0.03%
Volatility (6M) Calculated over the trailing 6-month period	12.23%	13.32%	-1.09%
Volatility (1Y) Calculated over the trailing 1-year period	14.44%	15.66%	-1.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.49%	16.55%	-1.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.63%	17.36%	-0.73%

IQDF vs. VEA - Expense Ratio Comparison

IQDF has a 0.47% expense ratio, which is higher than VEA's 0.03% expense ratio.

Dividends

IQDF vs. VEA - Dividend Comparison

IQDF's dividend yield for the trailing twelve months is around 2.77%, more than VEA's 2.62% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VEA Vanguard FTSE Developed Markets ETF	2.62%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%

Frequently Asked Questions

Can I hold both IQDF and VEA in my portfolio?

With a correlation of 0.95, IQDF and VEA move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, IQDF or VEA?

VEA has higher volatility (5.66%) compared to IQDF (5.63%). In terms of maximum drawdown, IQDF dropped -39.83% vs VEA's -60.68%.

Which ETF is better, IQDF or VEA?

On 10-year performance, VEA leads with 10.17% vs 9.66% for IQDF. On fees, VEA is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IQDF or VEA?

Over the 10-year period, VEA has performed better with a 10.17% return vs 9.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IQDF or VEA?

VEA is cheaper with a 0.03% expense ratio, compared with 0.47% for IQDF.

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

IQDF has the higher dividend yield at 2.77%, compared with 2.62% for VEA.

What is the main difference between IQDF and VEA?

IQDF tracks Northern Trust International Quality Dividend Index, while VEA tracks FTSE Developed All Cap ex US Index. They also come from different issuers: Northern Trust and Vanguard. Their fees differ too: 0.47% for IQDF and 0.03% for VEA.

Which has better risk-adjusted returns?

IQDF currently has the higher Sharpe Ratio (2.50 vs 2.09), 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.