QDEF vs. GARP

Last updated Aug 2, 2026

QDEF (FlexShares Quality Dividend Defensive Index Fund) and GARP (iShares MSCI USA Quality GARP ETF) are both Quality Factor funds - QDEF tracks the Northern Trust Quality Dividend Defensive Index while GARP tracks the MSCI USA Quality GARP Select Index. Both are passively managed. Over the past 5 years, QDEF returned 12.34%/yr vs 17.48%/yr for GARP. Their 0.78 correlation means they have sometimes moved together and sometimes differently. QDEF charges 0.37%/yr vs 0.15%/yr for GARP.

Performance

QDEF vs. GARP - Performance Comparison

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

Returns By Period

In the year-to-date period, QDEF achieves a 10.48% return, which is significantly lower than GARP's 16.89% return.

QDEF

• 1D: -0.05%
• 1M: 1.68%
• 6M: 8.64%
• YTD: 10.48%
• 1Y: 20.97%
• 3Y*: 17.66%
• 5Y*: 12.34%
• 10Y*: 12.14%
• ALL TIME*: 12.72%

GARP

• 1D: 0.66%
• 1M: -1.22%
• 6M: 14.45%
• YTD: 16.89%
• 1Y: 31.75%
• 3Y*: 28.85%
• 5Y*: 17.48%
• 10Y*: —
• ALL TIME*: 20.07%

*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)
GARP iShares MSCI USA Quality GARP ETF	$25.65M	$25.43M	$23.00M
QDEF FlexShares Quality Dividend Defensive Index Fund	$546.87K	$522.47K	$732.31K

QDEF vs. GARP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
QDEF FlexShares Quality Dividend Defensive Index Fund	10.48%	17.43%	21.19%	17.48%	-10.94%	26.04%	2.25%
GARP iShares MSCI USA Quality GARP ETF	16.89%	21.49%	37.42%	42.86%	-26.75%	27.99%	26.51%

Correlation

The correlation between QDEF and GARP is 0.73, 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.	0.73
Correlation (3Y) Balances recent behavior with more history.	0.77
Correlation (5Y) Shows whether the relationship held over a longer period.	0.82
Correlation (All Time) Calculated using the full available price history since Jan 16, 2020	0.78

The correlation between QDEF and GARP has been stable across timeframes, ranging from 0.73 to 0.82 - a consistent structural relationship.

QDEF vs. GARP - Sectors Allocation Comparison

Sectors	QDEF	GARP
Technology	35.6%	54.7%
Financial Services	11.7%	7.9%
Healthcare	10.5%	5.4%
Consumer Defensive	7.3%	-
Consumer Cyclical	7.3%	9.1%
Communication Services	5.8%	11.0%
Industrials	5.5%	6.4%
Energy	4.2%	3.0%
Real Estate	3.9%	0.4%
Utilities	3.6%	1.3%
Basic Materials	3.5%	1.1%

Return for Risk

QDEF vs. GARP — Risk / Return Rank

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

QDEF

QDEF Risk / Return Rank: 85
QDEF Sharpe Ratio Rank: 87
QDEF Sortino Ratio Rank: 87
QDEF Omega Ratio Rank: 87
QDEF Calmar Ratio Rank: 81
QDEF Martin Ratio Rank: 86

GARP

GARP Risk / Return Rank: 64
GARP Sharpe Ratio Rank: 66
GARP Sortino Ratio Rank: 62
GARP Omega Ratio Rank: 60
GARP Calmar Ratio Rank: 63
GARP Martin Ratio Rank: 66

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.

QDEF vs. GARP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Quality Dividend Defensive Index Fund (QDEF) and iShares MSCI USA Quality GARP ETF (GARP). 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.

	QDEF	GARP	Difference
Sharpe ratio: Return per unit of total volatility	2.07	1.50	+0.56
Sortino ratio: Return per unit of downside risk	2.94	2.08	+0.86
Omega ratio: Gain probability vs. loss probability	1.38	1.26	+0.12
Calmar ratio: Return relative to maximum drawdown	2.93	2.19	+0.73
Martin ratio: Return relative to average drawdown	12.20	7.99	+4.20

QDEF vs. GARP - Sharpe Ratio Comparison

The current QDEF Sharpe Ratio is 2.07, which is higher than the GARP Sharpe Ratio of 1.50. The chart below compares the historical Sharpe Ratios of QDEF and GARP, 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

QDEF vs. GARP - Drawdown Comparison

The maximum QDEF drawdown since its inception was -35.74%, which is greater than GARP's maximum drawdown of -31.34%. Use the drawdown chart below to compare losses from any high point for QDEF and GARP.

Drawdown Indicators

	QDEF	GARP	Difference
Max Drawdown Largest peak-to-trough decline	-35.74%	-31.34%	-4.40%
Max Drawdown (1Y) Largest decline over 1 year	-6.95%	-13.69%	+6.74%
Max Drawdown (3Y) Largest decline over 3 years	-14.43%	-23.73%	+9.30%
Max Drawdown (5Y) Largest decline over 5 years	-21.37%	-30.61%	+9.24%
Max Drawdown (10Y) Largest decline over 10 years	-35.74%	—	—
Current Drawdown Current decline from peak	-0.58%	-4.34%	+3.76%
Average Drawdown Average peak-to-trough decline	-3.27%	-7.27%	+4.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.67%	3.75%	-2.08%

Volatility

QDEF vs. GARP - Volatility Comparison

The current volatility for FlexShares Quality Dividend Defensive Index Fund (QDEF) is 2.29%, while iShares MSCI USA Quality GARP ETF (GARP) has a volatility of 5.68%. This indicates that QDEF experiences smaller price fluctuations and is considered to be less risky than GARP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QDEF	GARP	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.29%	5.68%	-3.39%
Volatility (6M) Calculated over the trailing 6-month period	7.47%	16.18%	-8.71%
Volatility (1Y) Calculated over the trailing 1-year period	9.85%	20.02%	-10.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.77%	22.34%	-8.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.14%	23.92%	-7.78%

QDEF vs. GARP - Expense Ratio Comparison

QDEF has a 0.37% expense ratio, which is higher than GARP's 0.15% expense ratio.

Dividends

QDEF vs. GARP - Dividend Comparison

QDEF's dividend yield for the trailing twelve months is around 1.58%, more than GARP's 0.27% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GARP iShares MSCI USA Quality GARP ETF	0.27%	0.31%	0.38%	0.75%	1.85%	0.67%	0.75%	0.00%	0.00%	0.00%	0.00%	0.00%
QDEF FlexShares Quality Dividend Defensive Index Fund	1.58%	1.74%	1.85%	2.21%	2.42%	1.84%	2.50%	3.17%	7.10%	2.70%	2.90%	3.00%

Frequently Asked Questions

Can I hold both QDEF and GARP in my portfolio?

QDEF and GARP have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QDEF or GARP?

GARP has higher volatility (5.68%) compared to QDEF (2.29%). In terms of maximum drawdown, QDEF dropped -35.74% vs GARP's -31.34%.

Which ETF is better, QDEF or GARP?

On 5-year performance, GARP leads with 17.48% vs 12.34% for QDEF. On fees, GARP is cheaper at 0.15% per year. On volatility, QDEF has been the lower-risk option at 2.29%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QDEF or GARP?

Over the 5-year period, GARP has performed better with a 17.48% return vs 12.34%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QDEF or GARP?

GARP is cheaper with a 0.15% expense ratio, compared with 0.37% for QDEF.

Which ETF pays a higher dividend yield, QDEF or GARP?

QDEF has the higher dividend yield at 1.58%, compared with 0.27% for GARP.

What is the main difference between QDEF and GARP?

QDEF tracks Northern Trust Quality Dividend Defensive Index, while GARP tracks MSCI USA Quality GARP Select Index. They also come from different issuers: FlexShares and iShares. Their fees differ too: 0.37% for QDEF and 0.15% for GARP.

Which has better risk-adjusted returns?

QDEF currently has the higher Sharpe Ratio (2.07 vs 1.50), 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.