IQDY vs. ESG

Last updated Jun 5, 2026

IQDY (FlexShares International Quality Dividend Dynamic Index Fund) and ESG (FlexShares STOXX US ESG Select Index Fund) are both exchange-traded funds - IQDY is a Foreign Large Cap Equities fund tracking the Northern Trust International Quality Dividend Dynamic 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, IQDY returned 11.58%/yr vs 12.68%/yr for ESG. A 0.68 correlation means they provide meaningful diversification when combined. IQDY charges 0.47%/yr vs 0.32%/yr for ESG.

Performance

IQDY vs. ESG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares International Quality Dividend Dynamic Index Fund (IQDY) 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, IQDY achieves a 18.64% return, which is significantly higher than ESG's 11.94% return.

IQDY

• 1D: 0.59%
• 1M: 5.34%
• YTD: 18.64%
• 6M: 21.05%
• 1Y: 41.80%
• 3Y*: 24.80%
• 5Y*: 11.58%
• 10Y*: 11.68%

ESG

• 1D: -0.23%
• 1M: 5.79%
• YTD: 11.94%
• 6M: 12.94%
• 1Y: 25.62%
• 3Y*: 20.64%
• 5Y*: 12.68%
• 10Y*: —

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

IQDY vs. ESG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IQDY FlexShares International Quality Dividend Dynamic Index Fund	18.64%	37.44%	5.97%	23.45%	-15.78%	12.00%	9.54%	27.27%	-20.04%	24.06%
ESG FlexShares STOXX US ESG Select Index Fund	11.94%	16.04%	20.22%	27.86%	-19.89%	28.48%	20.75%	31.74%	-5.17%	22.78%

Correlation

The correlation between IQDY and ESG is 0.77, 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	0.77
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (All Time) Calculated using the full available price history since Jul 15, 2016	0.68

The correlation between IQDY and ESG has been stable across timeframes, ranging from 0.68 to 0.77 - a consistent structural relationship.

IQDY vs. ESG - Sectors Allocation Comparison

Sectors	IQDY	ESG
Financial Services	26.3%	16.9%
Technology	18.2%	36.7%
Industrials	14.5%	4.5%
Consumer Cyclical	8.8%	10.0%
Basic Materials	7.8%	3.0%
Energy	7.6%	3.1%
Healthcare	5.4%	11.2%
Consumer Defensive	3.5%	9.2%
Communication Services	3.5%	1.0%
Utilities	3.4%	0.7%
Real Estate	1.0%	2.7%

Return for Risk

IQDY vs. ESG — Risk / Return Rank

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

IQDY

IQDY Risk / Return Rank: 80
IQDY Sharpe Ratio Rank: 82
IQDY Sortino Ratio Rank: 80
IQDY Omega Ratio Rank: 80
IQDY Calmar Ratio Rank: 79
IQDY Martin Ratio Rank: 81

ESG

ESG Risk / Return Rank: 69
ESG Sharpe Ratio Rank: 72
ESG Sortino Ratio Rank: 72
ESG Omega Ratio Rank: 69
ESG Calmar Ratio Rank: 61
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.

IQDY vs. ESG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares International Quality Dividend Dynamic Index Fund (IQDY) 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.

	IQDY	ESG	Difference
Sharpe ratio: Return per unit of total volatility	2.64	2.31	+0.33
Sortino ratio: Return per unit of downside risk	3.53	3.20	+0.32
Omega ratio: Gain probability vs. loss probability	1.47	1.41	+0.06
Calmar ratio: Return relative to maximum drawdown	4.03	2.97	+1.07
Martin ratio: Return relative to average drawdown	15.83	12.88	+2.95
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IQDY vs. ESG - Sharpe Ratio Comparison

The current IQDY Sharpe Ratio is 2.64, which is comparable to the ESG Sharpe Ratio of 2.31. The chart below compares the historical Sharpe Ratios of IQDY 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

	IQDY	ESG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.64	2.31	+0.33
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.65	0.76	-0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.64	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.83	-0.32

Drawdowns

IQDY vs. ESG - Drawdown Comparison

The maximum IQDY drawdown since its inception was -39.60%, which is greater than ESG's maximum drawdown of -32.53%. Use the drawdown chart below to compare losses from any high point for IQDY and ESG.

Drawdown Indicators

	IQDY	ESG	Difference
Max Drawdown Largest peak-to-trough decline	-39.60%	-32.53%	-7.07%
Max Drawdown (1Y) Largest decline over 1 year	-10.42%	-8.68%	-1.74%
Max Drawdown (3Y) Largest decline over 3 years	-14.76%	-18.32%	+3.56%
Max Drawdown (5Y) Largest decline over 5 years	-33.03%	-26.04%	-6.99%
Max Drawdown (10Y) Largest decline over 10 years	-39.60%	—	—
Current Drawdown Current decline from peak	-0.30%	-0.68%	+0.38%
Average Drawdown Average peak-to-trough decline	-9.10%	-5.07%	-4.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.65%	2.00%	+0.65%

Volatility

IQDY vs. ESG - Volatility Comparison

FlexShares International Quality Dividend Dynamic Index Fund (IQDY) has a higher volatility of 5.66% compared to FlexShares STOXX US ESG Select Index Fund (ESG) at 2.85%. This indicates that IQDY'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

	IQDY	ESG	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.66%	2.85%	+2.81%
Volatility (6M) Calculated over the trailing 6-month period	13.40%	8.47%	+4.93%
Volatility (1Y) Calculated over the trailing 1-year period	15.91%	11.16%	+4.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.81%	16.73%	+1.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.42%	18.35%	+0.07%

IQDY vs. ESG - Expense Ratio Comparison

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

Dividends

IQDY vs. ESG - Dividend Comparison

IQDY's dividend yield for the trailing twelve months is around 2.75%, 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%
IQDY FlexShares International Quality Dividend Dynamic Index Fund	2.75%	3.26%	6.95%	6.45%	5.52%	3.89%	2.62%	3.85%	5.97%	3.57%	3.77%	4.08%

Frequently Asked Questions

Can I hold both IQDY and ESG in my portfolio?

IQDY and ESG have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IQDY or ESG?

IQDY has higher volatility (5.66%) compared to ESG (2.85%). In terms of maximum drawdown, IQDY dropped -39.60% vs ESG's -32.53%.

Which ETF is better, IQDY or ESG?

On 5-year performance, ESG leads with 12.68% vs 11.58% for IQDY. On fees, ESG is cheaper at 0.32% per year. On volatility, ESG has been the lower-risk option at 2.85%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IQDY or ESG?

Over the 5-year period, ESG has performed better with a 12.68% return vs 11.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IQDY or ESG?

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

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

IQDY has the higher dividend yield at 2.75%, compared with 0.87% for ESG.

What is the main difference between IQDY and ESG?

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

Which has better risk-adjusted returns?

IQDY currently has the higher Sharpe Ratio (2.64 vs 2.31), 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.