IQDY vs. VEA

Last updated Aug 5, 2026

IQDY (FlexShares International Quality Dividend Dynamic Index Fund) and VEA (Vanguard FTSE Developed Markets ETF) are both exchange-traded funds - IQDY is a Quality Factor fund tracking the Northern Trust International Quality Dividend Dynamic Index, while VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, IQDY returned 11.47%/yr vs 10.24%/yr for VEA. Their correlation of 0.87 means they have usually moved in the same direction. IQDY charges 0.47%/yr vs 0.03%/yr for VEA.

Performance

IQDY vs. VEA - Performance Comparison

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

Returns By Period

In the year-to-date period, IQDY achieves a 20.32% return, which is significantly higher than VEA's 16.41% return. Over the past 10 years, IQDY has outperformed VEA with an annualized return of 11.47%, while VEA has yielded a comparatively lower 10.24% 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%

VEA

• 1D: 1.66%
• 1M: 1.99%
• 6M: 9.00%
• YTD: 16.41%
• 1Y: 30.82%
• 3Y*: 19.75%
• 5Y*: 9.94%
• 10Y*: 10.24%
• ALL TIME*: 5.25%

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

Liquidity Comparison

Position	Avg. 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
VEA Vanguard FTSE Developed Markets ETF	$653.63M	$753.15M	$792.32M

IQDY vs. VEA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
VEA Vanguard FTSE Developed Markets ETF	16.41%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%

Correlation

The correlation between IQDY and VEA is 0.94, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.94
Correlation (3Y) Balances recent behavior with more history.	0.94
Correlation (5Y) Shows whether the relationship held over a longer period.	0.95
Correlation (10Y) Provides a long-term view across more market conditions.	0.92
Correlation (All Time) Calculated using the full available price history since Apr 16, 2013	0.87

The correlation between IQDY and VEA has been stable across timeframes, ranging from 0.87 to 0.95 - a consistent structural relationship.

IQDY vs. VEA - Sectors Allocation Comparison

Sectors	IQDY	VEA
Financial Services	26.3%	23.1%
Technology	24.3%	18.4%
Industrials	14.2%	17.9%
Consumer Cyclical	8.8%	7.3%
Basic Materials	7.7%	6.9%
Healthcare	5.3%	7.9%
Energy	4.8%	4.5%
Consumer Defensive	2.9%	5.3%
Communication Services	2.5%	3.2%
Utilities	2.1%	3.1%
Real Estate	1.2%	2.5%

Return for Risk

IQDY vs. VEA — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

IQDY

IQDY Risk / Return Rank: 84
IQDY Sharpe Ratio Rank: 84
IQDY Sortino Ratio Rank: 80
IQDY Omega Ratio Rank: 83
IQDY Calmar Ratio Rank: 86
IQDY Martin Ratio Rank: 85

VEA

VEA Risk / Return Rank: 69
VEA Sharpe Ratio Rank: 70
VEA Sortino Ratio Rank: 67
VEA Omega Ratio Rank: 69
VEA Calmar Ratio Rank: 68
VEA Martin Ratio Rank: 72

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. VEA - Risk-Adjusted Trends Comparison

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

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.

	IQDY	VEA	Difference
Sharpe ratio: Return per unit of total volatility	2.17	1.80	+0.37
Sortino ratio: Return per unit of downside risk	2.89	2.48	+0.41
Omega ratio: Gain probability vs. loss probability	1.39	1.33	+0.06
Calmar ratio: Return relative to maximum drawdown	3.70	2.66	+1.04
Martin ratio: Return relative to average drawdown	13.26	9.95	+3.32

IQDY vs. VEA - Sharpe Ratio Comparison

The current IQDY Sharpe Ratio is 2.17, which is comparable to the VEA Sharpe Ratio of 1.80. The chart below compares the historical Sharpe Ratios of IQDY 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.

Drawdowns

IQDY vs. VEA - Drawdown Comparison

The maximum IQDY drawdown since its inception was -39.60%, smaller than the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for IQDY and VEA.

Drawdown Indicators

	IQDY	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-39.60%	-60.68%	+21.08%
Max Drawdown (1Y) Largest decline over 1 year	-10.42%	-11.63%	+1.21%
Max Drawdown (3Y) Largest decline over 3 years	-14.76%	-13.45%	-1.31%
Max Drawdown (5Y) Largest decline over 5 years	-32.30%	-29.71%	-2.59%
Max Drawdown (10Y) Largest decline over 10 years	-39.60%	-35.73%	-3.87%
Current Drawdown Current decline from peak	-0.95%	-0.23%	-0.72%
Average Drawdown Average peak-to-trough decline	-9.02%	-13.19%	+4.17%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.90%	3.11%	-0.21%

Volatility

IQDY vs. VEA - Volatility Comparison

FlexShares International Quality Dividend Dynamic Index Fund (IQDY) has a higher volatility of 6.18% compared to Vanguard FTSE Developed Markets ETF (VEA) at 5.44%. This indicates that IQDY's price experiences larger fluctuations and is considered to be riskier than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IQDY	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.18%	5.44%	+0.74%
Volatility (6M) Calculated over the trailing 6-month period	15.79%	15.43%	+0.36%
Volatility (1Y) Calculated over the trailing 1-year period	17.82%	17.29%	+0.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.14%	16.86%	+1.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.28%	17.22%	+1.06%

IQDY vs. VEA - Expense Ratio Comparison

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

Dividends

IQDY vs. VEA - Dividend Comparison

IQDY's dividend yield for the trailing twelve months is around 2.92%, more than VEA's 2.51% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VEA Vanguard FTSE Developed Markets ETF	2.51%	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 IQDY and VEA in my portfolio?

With a correlation of 0.94, IQDY 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, IQDY or VEA?

IQDY has higher volatility (6.18%) compared to VEA (5.44%). In terms of maximum drawdown, IQDY dropped -39.60% vs VEA's -60.68%.

Which ETF is better, IQDY or VEA?

On 10-year performance, IQDY leads with 11.47% vs 10.24% for VEA. On fees, VEA is cheaper at 0.03% per year. On volatility, VEA has been the lower-risk option at 5.44%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IQDY or VEA?

Over the 10-year period, IQDY has performed better with a 11.47% return vs 10.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IQDY or VEA?

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

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

IQDY has the higher dividend yield at 2.92%, compared with 2.51% for VEA.

What is the main difference between IQDY and VEA?

IQDY is categorized as Quality Factor, while VEA is Foreign Large Cap Equities. IQDY tracks Northern Trust International Quality Dividend Dynamic 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 IQDY and 0.03% for VEA.

Which has better risk-adjusted returns?

IQDY currently has the higher Sharpe Ratio (2.17 vs 1.80), 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.