IQDY vs. VEU

Last updated Jun 4, 2026

IQDY (FlexShares International Quality Dividend Dynamic Index Fund) and VEU (Vanguard FTSE All-World ex-US ETF) are both Foreign Large Cap Equities funds - IQDY tracks the Northern Trust International Quality Dividend Dynamic Index while VEU tracks the FTSE All-World ex US Index. Both are passively managed. Over the past 10 years, IQDY returned 11.61%/yr vs 9.94%/yr for VEU. Their correlation of 0.88 suggests significant overlap in exposure. IQDY charges 0.47%/yr vs 0.04%/yr for VEU.

Performance

IQDY vs. VEU - 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 All-World ex-US ETF (VEU). 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 VEU's 14.60% return. Over the past 10 years, IQDY has outperformed VEU with an annualized return of 11.61%, while VEU has yielded a comparatively lower 9.94% 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%

VEU

• 1D: -0.98%
• 1M: 5.07%
• YTD: 14.60%
• 6M: 17.34%
• 1Y: 32.37%
• 3Y*: 19.62%
• 5Y*: 8.67%
• 10Y*: 9.94%

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

IQDY vs. VEU - 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%
VEU Vanguard FTSE All-World ex-US ETF	14.60%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%

Correlation

The correlation between IQDY and VEU is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.93
Correlation (All Time) Calculated using the full available price history since Apr 17, 2013	0.88

The correlation between IQDY and VEU has been stable across timeframes, ranging from 0.88 to 0.97 - a consistent structural relationship.

IQDY vs. VEU - Sectors Allocation Comparison

Sectors	IQDY	VEU
Financial Services	26.3%	23.3%
Technology	18.2%	18.5%
Industrials	14.5%	15.7%
Consumer Cyclical	8.8%	8.2%
Basic Materials	7.8%	7.1%
Energy	7.6%	5.2%
Healthcare	5.4%	7.1%
Consumer Defensive	3.5%	5.1%
Communication Services	3.5%	4.6%
Utilities	3.4%	3.2%
Real Estate	1.0%	2.0%

Return for Risk

IQDY vs. VEU — 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

VEU

VEU Risk / Return Rank: 60
VEU Sharpe Ratio Rank: 62
VEU Sortino Ratio Rank: 61
VEU Omega Ratio Rank: 62
VEU Calmar Ratio Rank: 56
VEU Martin Ratio Rank: 61

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. VEU - 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 All-World ex-US ETF (VEU). 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	VEU	Difference
Sharpe ratio: Return per unit of total volatility	2.63	2.13	+0.50
Sortino ratio: Return per unit of downside risk	3.51	2.94	+0.57
Omega ratio: Gain probability vs. loss probability	1.47	1.39	+0.08
Calmar ratio: Return relative to maximum drawdown	4.01	2.85	+1.17
Martin ratio: Return relative to average drawdown	15.76	11.06	+4.70
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. VEU - Sharpe Ratio Comparison

The current IQDY Sharpe Ratio is 2.63, which is comparable to the VEU Sharpe Ratio of 2.13. The chart below compares the historical Sharpe Ratios of IQDY and VEU, 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	VEU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.63	2.13	+0.50
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.65	0.54	+0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.63	0.58	+0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.25	+0.25

Drawdowns

IQDY vs. VEU - Drawdown Comparison

The maximum IQDY drawdown since its inception was -39.60%, smaller than the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for IQDY and VEU.

Drawdown Indicators

	IQDY	VEU	Difference
Max Drawdown Largest peak-to-trough decline	-39.60%	-61.52%	+21.92%
Max Drawdown (1Y) Largest decline over 1 year	-10.42%	-11.43%	+1.01%
Max Drawdown (3Y) Largest decline over 3 years	-14.76%	-13.69%	-1.07%
Max Drawdown (5Y) Largest decline over 5 years	-33.03%	-29.31%	-3.72%
Max Drawdown (10Y) Largest decline over 10 years	-39.60%	-34.98%	-4.62%
Current Drawdown Current decline from peak	-0.89%	-0.98%	+0.09%
Average Drawdown Average peak-to-trough decline	-9.10%	-13.13%	+4.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.65%	2.93%	-0.28%

Volatility

IQDY vs. VEU - Volatility Comparison

FlexShares International Quality Dividend Dynamic Index Fund (IQDY) and Vanguard FTSE All-World ex-US ETF (VEU) have volatilities of 5.84% and 5.59%, 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

	IQDY	VEU	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.84%	5.59%	+0.25%
Volatility (6M) Calculated over the trailing 6-month period	13.40%	13.04%	+0.36%
Volatility (1Y) Calculated over the trailing 1-year period	15.93%	15.29%	+0.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.81%	16.07%	+1.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.43%	17.21%	+1.22%

IQDY vs. VEU - Expense Ratio Comparison

IQDY has a 0.47% expense ratio, which is higher than VEU's 0.04% expense ratio.

Dividends

IQDY vs. VEU - Dividend Comparison

IQDY's dividend yield for the trailing twelve months is around 2.76%, more than VEU's 2.61% 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%
VEU Vanguard FTSE All-World ex-US ETF	2.61%	3.09%	3.24%	3.32%	3.12%	3.08%	2.00%	3.10%	3.27%	2.66%	2.96%	2.95%

Frequently Asked Questions

Can I hold both IQDY and VEU in my portfolio?

With a correlation of 0.95, IQDY and VEU 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 VEU?

IQDY has higher volatility (5.84%) compared to VEU (5.59%). In terms of maximum drawdown, IQDY dropped -39.60% vs VEU's -61.52%.

Which ETF is better, IQDY or VEU?

On 10-year performance, IQDY leads with 11.61% vs 9.94% for VEU. On fees, VEU is cheaper at 0.04% per year. On volatility, VEU has been the lower-risk option at 5.59%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IQDY or VEU?

Over the 10-year period, IQDY has performed better with a 11.61% return vs 9.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IQDY or VEU?

VEU is cheaper with a 0.04% expense ratio, compared with 0.47% for IQDY.

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

IQDY has the higher dividend yield at 2.76%, compared with 2.61% for VEU.

What is the main difference between IQDY and VEU?

IQDY tracks Northern Trust International Quality Dividend Dynamic Index, while VEU tracks FTSE All-World ex US Index. They also come from different issuers: Northern Trust and Vanguard. Their fees differ too: 0.47% for IQDY and 0.04% for VEU.

Which has better risk-adjusted returns?

IQDY currently has the higher Sharpe Ratio (2.63 vs 2.13), 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.