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IQDY vs. QUAL
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IQDY vs. QUAL

Last updated Aug 5, 2026
Documentation

IQDY (FlexShares International Quality Dividend Dynamic Index Fund) and QUAL (iShares MSCI USA Quality Factor ETF) are both Quality Factor funds - IQDY tracks the Northern Trust International Quality Dividend Dynamic Index while QUAL tracks the MSCI USA Sector Neutral Quality Index. Both are passively managed. Over the past 10 years, IQDY returned 11.47%/yr vs 14.32%/yr for QUAL. Their 0.69 correlation means they have sometimes moved together and sometimes differently. IQDY charges 0.47%/yr vs 0.15%/yr for QUAL.

Performance

IQDY vs. QUAL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares International Quality Dividend Dynamic Index Fund (IQDY) and iShares MSCI USA Quality Factor ETF (QUAL). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, IQDY achieves a 20.32% return, which is significantly higher than QUAL's 13.64% return. Over the past 10 years, IQDY has underperformed QUAL with an annualized return of 11.47%, while QUAL has yielded a comparatively higher 14.32% annualized return.

IQDY

1D
1.67%
1M
2.88%
6M
12.03%
YTD
20.32%
1Y
38.36%
3Y*
24.19%
5Y*
12.61%
10Y*
11.47%
ALL TIME*
9.03%

QUAL

1D
1.39%
1M
2.93%
6M
12.09%
YTD
13.64%
1Y
22.38%
3Y*
19.28%
5Y*
11.43%
10Y*
14.32%
ALL TIME*
13.87%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

PositionAvg. Volume Value (2W)Avg. Volume Value (1M)Avg. Volume Value (3M)

IQDY

FlexShares International Quality Dividend Dynamic Index Fund
$942.98K$558.46K$430.71K

QUAL

iShares MSCI USA Quality Factor ETF
$222.95M$240.21M$385.16M

IQDY vs. QUAL - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IQDY
FlexShares International Quality Dividend Dynamic Index Fund		20.32%37.44%5.97%23.45%-15.78%12.00%9.54%27.27%-20.04%24.06%
QUAL
iShares MSCI USA Quality Factor ETF		13.64%12.65%22.29%30.88%-20.50%26.94%17.04%33.89%-5.70%22.26%

Correlation

The correlation between IQDY and QUAL is 0.76, 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.

0.76

Correlation (3Y)
Balances recent behavior with more history.

0.71

Correlation (5Y)
Shows whether the relationship held over a longer period.

0.72

Correlation (10Y)
Provides a long-term view across more market conditions.

0.71

Correlation (All Time)
Calculated using the full available price history since Jul 18, 2013

0.69

The correlation between IQDY and QUAL has been stable across timeframes, ranging from 0.69 to 0.76 - a consistent structural relationship.

IQDY vs. QUAL - Sectors Allocation Comparison

Sectors
IQDY
QUAL

Financial Services

26.3%
10.9%

Technology

24.3%
40.2%

Industrials

14.2%
7.4%

Consumer Cyclical

8.8%
9.0%

Basic Materials

7.7%
1.9%

Healthcare

5.3%
9.2%

Energy

4.8%
2.9%

Consumer Defensive

2.9%
4.3%

Communication Services

2.5%
10.3%

Utilities

2.1%
2.1%

Real Estate

1.2%
1.7%

Financial Services

IQDY
26.3%
QUAL
10.9%

Technology

IQDY
24.3%
QUAL
40.2%

Industrials

IQDY
14.2%
QUAL
7.4%

Consumer Cyclical

IQDY
8.8%
QUAL
9.0%

Basic Materials

IQDY
7.7%
QUAL
1.9%

Healthcare

IQDY
5.3%
QUAL
9.2%

Energy

IQDY
4.8%
QUAL
2.9%

Consumer Defensive

IQDY
2.9%
QUAL
4.3%

Communication Services

IQDY
2.5%
QUAL
10.3%

Utilities

IQDY
2.1%
QUAL
2.1%

Real Estate

IQDY
1.2%
QUAL
1.7%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

FlexShares International Quality Dividend Dynamic Index Fund

iShares MSCI USA Quality Factor ETF

Often compared with IQDY:
IQDY vs. VYMIIQDY vs. IQDGIQDY vs. DVYEIQDY vs. IDHQIQDY vs. IEIIQDY vs. VXUSIQDY vs. FIDI
Often compared with QUAL:
QUAL vs. SPHQQUAL vs. SPYQUAL vs. MTUMQUAL vs. USMVQUAL vs. VOOQUAL vs. IVVQUAL vs. SCHD

Return for Risk

IQDY vs. QUAL — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.
IQDY
IQDY Risk / Return Rank: 8484
Overall Rank
IQDY Sharpe Ratio Rank: 8484
Sharpe Ratio Rank
IQDY Sortino Ratio Rank: 8080
Sortino Ratio Rank
IQDY Omega Ratio Rank: 8383
Omega Ratio Rank
IQDY Calmar Ratio Rank: 8686
Calmar Ratio Rank
IQDY Martin Ratio Rank: 8585
Martin Ratio Rank
QUAL
QUAL Risk / Return Rank: 7171
Overall Rank
QUAL Sharpe Ratio Rank: 7272
Sharpe Ratio Rank
QUAL Sortino Ratio Rank: 7272
Sortino Ratio Rank
QUAL Omega Ratio Rank: 6969
Omega Ratio Rank
QUAL Calmar Ratio Rank: 6464
Calmar Ratio Rank
QUAL Martin Ratio Rank: 7878
Martin Ratio Rank
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.

IQDY vs. QUAL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares International Quality Dividend Dynamic Index Fund (IQDY) and iShares MSCI USA Quality Factor ETF (QUAL). 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.

IQDYQUALDifference
Sharpe ratioReturn per unit of total volatility
2.17
1.83

+0.33

Sortino ratioReturn per unit of downside risk
2.89
2.59

+0.29

Omega ratioGain probability vs. loss probability

1.39

1.32

+0.06

Calmar ratioReturn relative to maximum drawdown

3.70

2.49

+1.21

Martin ratioReturn relative to average drawdown

13.26

11.15

+2.12

IQDY vs. QUAL - Sharpe Ratio Comparison

The current IQDY Sharpe Ratio is 2.17, which is comparable to the QUAL Sharpe Ratio of 1.83. The chart below compares the historical Sharpe Ratios of IQDY and QUAL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

IQDY vs. QUAL - Drawdown Comparison

The maximum IQDY drawdown since its inception was -39.60%, which is greater than QUAL's maximum drawdown of -34.06%. Use the drawdown chart below to compare losses from any high point for IQDY and QUAL.

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Drawdown Indicators

IQDYQUALDifference

Max Drawdown

Largest peak-to-trough decline

-39.60%

-34.06%

-5.54%

Max Drawdown (1Y)

Largest decline over 1 year

-10.42%

-9.03%

-1.39%

Max Drawdown (3Y)

Largest decline over 3 years

-14.76%

-18.00%

+3.24%

Max Drawdown (5Y)

Largest decline over 5 years

-32.30%

-28.23%

-4.07%

Max Drawdown (10Y)

Largest decline over 10 years

-39.60%

-34.06%

-5.54%

Current Drawdown

Current decline from peak

-0.95%

0.00%

-0.95%

Average Drawdown

Average peak-to-trough decline

-9.02%

-4.07%

-4.95%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.90%

2.01%

+0.89%

Volatility

IQDY vs. QUAL - Volatility Comparison

FlexShares International Quality Dividend Dynamic Index Fund (IQDY) has a higher volatility of 6.18% compared to iShares MSCI USA Quality Factor ETF (QUAL) at 3.34%. This indicates that IQDY's price experiences larger fluctuations and is considered to be riskier than QUAL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

IQDYQUALDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.18%

3.34%

+2.84%

Volatility (6M)

Calculated over the trailing 6-month period

15.79%

9.78%

+6.01%

Volatility (1Y)

Calculated over the trailing 1-year period

17.82%

12.37%

+5.45%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

18.14%

17.40%

+0.74%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.28%

18.10%

+0.18%

IQDY vs. QUAL - Expense Ratio Comparison

IQDY has a 0.47% expense ratio, which is higher than QUAL's 0.15% expense ratio.

Dividends

IQDY vs. QUAL - Dividend Comparison

IQDY's dividend yield for the trailing twelve months is around 2.92%, more than QUAL's 0.84% yield.

PositionTTM20252024202320222021202020192018201720162015
IQDY
FlexShares International Quality Dividend Dynamic Index Fund		2.92%3.26%6.95%6.45%5.52%3.89%2.62%3.85%5.97%3.57%3.77%4.08%
QUAL
iShares MSCI USA Quality Factor ETF		0.84%0.94%1.02%1.23%1.59%1.20%1.39%1.60%2.00%1.76%1.96%1.63%

Frequently Asked Questions

IQDY and QUAL have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IQDY has higher volatility (6.18%) compared to QUAL (3.34%). In terms of maximum drawdown, IQDY dropped -39.60% vs QUAL's -34.06%.

On 10-year performance, QUAL leads with 14.32% vs 11.47% for IQDY. On fees, QUAL is cheaper at 0.15% per year. On volatility, QUAL has been the lower-risk option at 3.34%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, QUAL has performed better with a 14.32% return vs 11.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

QUAL is cheaper with a 0.15% expense ratio, compared with 0.47% for IQDY.

IQDY has the higher dividend yield at 2.92%, compared with 0.84% for QUAL.

IQDY tracks Northern Trust International Quality Dividend Dynamic Index, while QUAL tracks MSCI USA Sector Neutral Quality Index. They also come from different issuers: Northern Trust and iShares. Their fees differ too: 0.47% for IQDY and 0.15% for QUAL.

IQDY currently has the higher Sharpe Ratio (2.17 vs 1.83), 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.

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