IQDY vs. TLTD

Last updated Jun 4, 2026

IQDY (FlexShares International Quality Dividend Dynamic Index Fund) and TLTD (FlexShares Morningstar Developed Markets ex-US Factor Tilt) are both exchange-traded funds - IQDY is a Foreign Large Cap Equities fund tracking the Northern Trust International Quality Dividend Dynamic Index, while TLTD is a Global Equities fund tracking the Morningstar Developed Markets ex-US Factor Tilt Index. Both are passively managed. Over the past 10 years, IQDY returned 11.61%/yr vs 9.50%/yr for TLTD. Their correlation of 0.85 suggests significant overlap in exposure. IQDY charges 0.47%/yr vs 0.39%/yr for TLTD.

Performance

IQDY vs. TLTD - 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 Morningstar Developed Markets ex-US Factor Tilt (TLTD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IQDY achieves a 17.95% return, which is significantly higher than TLTD's 8.45% return. Over the past 10 years, IQDY has outperformed TLTD with an annualized return of 11.61%, while TLTD has yielded a comparatively lower 9.50% annualized return.

IQDY

• 1D: -0.89%
• 1M: 6.55%
• YTD: 17.95%
• 6M: 20.74%
• 1Y: 41.61%
• 3Y*: 24.42%
• 5Y*: 11.45%
• 10Y*: 11.61%

TLTD

• 1D: -0.79%
• 1M: 2.60%
• YTD: 8.45%
• 6M: 11.89%
• 1Y: 26.70%
• 3Y*: 19.83%
• 5Y*: 9.51%
• 10Y*: 9.50%

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

IQDY vs. TLTD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IQDY FlexShares International Quality Dividend Dynamic Index Fund	17.95%	37.44%	5.97%	23.45%	-15.78%	12.00%	9.54%	27.27%	-20.04%	24.06%
TLTD FlexShares Morningstar Developed Markets ex-US Factor Tilt	8.45%	39.69%	4.78%	17.19%	-13.74%	12.84%	4.21%	21.26%	-17.57%	26.27%

Correlation

The correlation between IQDY and TLTD is 0.89, 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	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.90
Correlation (All Time) Calculated using the full available price history since Apr 17, 2013	0.85

The correlation between IQDY and TLTD has been stable across timeframes, ranging from 0.85 to 0.93 - a consistent structural relationship.

IQDY vs. TLTD - Sectors Allocation Comparison

Sectors	IQDY	TLTD
Financial Services	26.3%	32.7%
Technology	18.2%	10.3%
Industrials	14.5%	13.5%
Consumer Cyclical	8.8%	5.6%
Basic Materials	7.8%	7.4%
Energy	7.6%	7.7%
Healthcare	5.4%	4.2%
Consumer Defensive	3.5%	3.5%
Communication Services	3.5%	2.0%
Utilities	3.4%	3.3%
Real Estate	1.0%	0.9%

Return for Risk

IQDY vs. TLTD — Risk / Return Rank

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

IQDY

IQDY Risk / Return Rank: 79
IQDY Sharpe Ratio Rank: 80
IQDY Sortino Ratio Rank: 77
IQDY Omega Ratio Rank: 78
IQDY Calmar Ratio Rank: 78
IQDY Martin Ratio Rank: 80

TLTD

TLTD Risk / Return Rank: 51
TLTD Sharpe Ratio Rank: 54
TLTD Sortino Ratio Rank: 53
TLTD Omega Ratio Rank: 53
TLTD Calmar Ratio Rank: 45
TLTD Martin Ratio Rank: 50

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. TLTD - 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 Morningstar Developed Markets ex-US Factor Tilt (TLTD). 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	TLTD	Difference
Sharpe ratio: Return per unit of total volatility	2.63	1.86	+0.77
Sortino ratio: Return per unit of downside risk	3.51	2.60	+0.91
Omega ratio: Gain probability vs. loss probability	1.47	1.33	+0.14
Calmar ratio: Return relative to maximum drawdown	4.01	2.21	+1.80
Martin ratio: Return relative to average drawdown	15.76	8.49	+7.27
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. TLTD - Sharpe Ratio Comparison

The current IQDY Sharpe Ratio is 2.63, which is higher than the TLTD Sharpe Ratio of 1.86. The chart below compares the historical Sharpe Ratios of IQDY and TLTD, 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	TLTD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.63	1.86	+0.77
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.65	0.60	+0.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.63	0.57	+0.07
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.52	-0.02

Drawdowns

IQDY vs. TLTD - Drawdown Comparison

The maximum IQDY drawdown since its inception was -39.60%, roughly equal to the maximum TLTD drawdown of -40.62%. Use the drawdown chart below to compare losses from any high point for IQDY and TLTD.

Drawdown Indicators

	IQDY	TLTD	Difference
Max Drawdown Largest peak-to-trough decline	-39.60%	-40.62%	+1.02%
Max Drawdown (1Y) Largest decline over 1 year	-10.42%	-12.11%	+1.69%
Max Drawdown (3Y) Largest decline over 3 years	-14.76%	-13.10%	-1.66%
Max Drawdown (5Y) Largest decline over 5 years	-33.03%	-28.96%	-4.07%
Max Drawdown (10Y) Largest decline over 10 years	-39.60%	-40.62%	+1.02%
Current Drawdown Current decline from peak	-0.89%	-2.35%	+1.46%
Average Drawdown Average peak-to-trough decline	-9.10%	-7.68%	-1.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.65%	3.15%	-0.50%

Volatility

IQDY vs. TLTD - Volatility Comparison

FlexShares International Quality Dividend Dynamic Index Fund (IQDY) has a higher volatility of 5.84% compared to FlexShares Morningstar Developed Markets ex-US Factor Tilt (TLTD) at 4.34%. This indicates that IQDY's price experiences larger fluctuations and is considered to be riskier than TLTD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IQDY	TLTD	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.84%	4.34%	+1.50%
Volatility (6M) Calculated over the trailing 6-month period	13.40%	11.99%	+1.41%
Volatility (1Y) Calculated over the trailing 1-year period	15.93%	14.46%	+1.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.81%	15.97%	+1.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.43%	16.81%	+1.62%

IQDY vs. TLTD - Expense Ratio Comparison

IQDY has a 0.47% expense ratio, which is higher than TLTD's 0.39% expense ratio.

Dividends

IQDY vs. TLTD - Dividend Comparison

IQDY's dividend yield for the trailing twelve months is around 2.76%, less than TLTD's 3.08% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IQDY FlexShares International Quality Dividend Dynamic Index Fund	2.76%	3.26%	6.95%	6.45%	5.52%	3.89%	2.62%	3.85%	5.97%	3.57%	3.77%	4.08%
TLTD FlexShares Morningstar Developed Markets ex-US Factor Tilt	3.08%	3.44%	3.88%	3.39%	2.76%	3.44%	2.04%	3.46%	3.16%	2.71%	2.93%	2.56%

Frequently Asked Questions

Can I hold both IQDY and TLTD in my portfolio?

IQDY and TLTD have a correlation of 0.89, 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 TLTD?

IQDY has higher volatility (5.84%) compared to TLTD (4.34%). In terms of maximum drawdown, IQDY dropped -39.60% vs TLTD's -40.62%.

Which ETF is better, IQDY or TLTD?

On 10-year performance, IQDY leads with 11.61% vs 9.50% for TLTD. On fees, TLTD is cheaper at 0.39% per year. On volatility, TLTD has been the lower-risk option at 4.34%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IQDY or TLTD?

Over the 10-year period, IQDY has performed better with a 11.61% return vs 9.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IQDY or TLTD?

TLTD is cheaper with a 0.39% expense ratio, compared with 0.47% for IQDY.

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

TLTD has the higher dividend yield at 3.08%, compared with 2.76% for IQDY.

What is the main difference between IQDY and TLTD?

IQDY is categorized as Foreign Large Cap Equities, while TLTD is Global Equities. IQDY tracks Northern Trust International Quality Dividend Dynamic Index, while TLTD tracks Morningstar Developed Markets ex-US Factor Tilt Index. Their fees differ too: 0.47% for IQDY and 0.39% for TLTD.

Which has better risk-adjusted returns?

IQDY currently has the higher Sharpe Ratio (2.63 vs 1.86), 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.