QDEF vs. ILCV

Last updated Jun 4, 2026

QDEF (FlexShares Quality Dividend Defensive Index Fund) and ILCV (iShares Morningstar Value ETF) are both Large Cap Value Equities funds - QDEF tracks the Northern Trust Quality Dividend Defensive Index while ILCV tracks the Morningstar US Large-Mid Cap Broad Value Index. Both are passively managed. Over the past 10 years, QDEF returned 12.34%/yr vs 11.68%/yr for ILCV. Their correlation of 0.89 suggests significant overlap in exposure. QDEF charges 0.37%/yr vs 0.04%/yr for ILCV.

Performance

QDEF vs. ILCV - Performance Comparison

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

Returns By Period

In the year-to-date period, QDEF achieves a 8.81% return, which is significantly higher than ILCV's 7.75% return. Over the past 10 years, QDEF has outperformed ILCV with an annualized return of 12.34%, while ILCV has yielded a comparatively lower 11.68% annualized return.

QDEF

• 1D: -0.47%
• 1M: 3.94%
• YTD: 8.81%
• 6M: 8.87%
• 1Y: 23.31%
• 3Y*: 19.60%
• 5Y*: 12.64%
• 10Y*: 12.34%

ILCV

• 1D: -0.44%
• 1M: 2.76%
• YTD: 7.75%
• 6M: 7.41%
• 1Y: 26.58%
• 3Y*: 18.61%
• 5Y*: 11.42%
• 10Y*: 11.68%

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

QDEF vs. ILCV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QDEF FlexShares Quality Dividend Defensive Index Fund	8.81%	17.43%	21.19%	17.48%	-10.94%	26.04%	3.15%	24.90%	-4.10%	17.04%
ILCV iShares Morningstar Value ETF	7.75%	18.79%	17.03%	14.43%	-7.02%	26.71%	-0.84%	25.19%	-6.24%	15.00%

Correlation

The correlation between QDEF and ILCV 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 Dec 20, 2012	0.89

The correlation between QDEF and ILCV has been stable across timeframes, ranging from 0.89 to 0.93 - a consistent structural relationship.

QDEF vs. ILCV - Sectors Allocation Comparison

Sectors	QDEF	ILCV
Technology	32.8%	23.8%
Financial Services	11.5%	16.5%
Healthcare	11.4%	11.5%
Communication Services	7.7%	8.0%
Consumer Defensive	7.4%	7.6%
Consumer Cyclical	7.3%	9.5%
Industrials	6.7%	8.8%
Real Estate	5.4%	2.0%
Energy	4.0%	6.0%
Basic Materials	3.0%	2.4%
Utilities	2.9%	3.5%

Return for Risk

QDEF vs. ILCV — Risk / Return Rank

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

QDEF

QDEF Risk / Return Rank: 73
QDEF Sharpe Ratio Rank: 74
QDEF Sortino Ratio Rank: 76
QDEF Omega Ratio Rank: 75
QDEF Calmar Ratio Rank: 67
QDEF Martin Ratio Rank: 76

ILCV

ILCV Risk / Return Rank: 82
ILCV Sharpe Ratio Rank: 82
ILCV Sortino Ratio Rank: 84
ILCV Omega Ratio Rank: 81
ILCV Calmar Ratio Rank: 79
ILCV Martin Ratio Rank: 83

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.

QDEF vs. ILCV - Risk-Adjusted Trends Comparison

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

	QDEF	ILCV	Difference
Sharpe ratio: Return per unit of total volatility	2.44	2.72	-0.29
Sortino ratio: Return per unit of downside risk	3.46	3.85	-0.39
Omega ratio: Gain probability vs. loss probability	1.45	1.50	-0.04
Calmar ratio: Return relative to maximum drawdown	3.37	4.08	-0.71
Martin ratio: Return relative to average drawdown	14.62	16.87	-2.25
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

QDEF vs. ILCV - Sharpe Ratio Comparison

The current QDEF Sharpe Ratio is 2.44, which is comparable to the ILCV Sharpe Ratio of 2.72. The chart below compares the historical Sharpe Ratios of QDEF and ILCV, 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

	QDEF	ILCV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.44	2.72	-0.29
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.92	0.81	+0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.77	0.70	+0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.84	0.46	+0.38

Drawdowns

QDEF vs. ILCV - Drawdown Comparison

The maximum QDEF drawdown since its inception was -35.74%, smaller than the maximum ILCV drawdown of -58.63%. Use the drawdown chart below to compare losses from any high point for QDEF and ILCV.

Drawdown Indicators

	QDEF	ILCV	Difference
Max Drawdown Largest peak-to-trough decline	-35.74%	-58.63%	+22.89%
Max Drawdown (1Y) Largest decline over 1 year	-6.95%	-6.55%	-0.40%
Max Drawdown (3Y) Largest decline over 3 years	-14.43%	-14.95%	+0.52%
Max Drawdown (5Y) Largest decline over 5 years	-21.37%	-18.58%	-2.79%
Max Drawdown (10Y) Largest decline over 10 years	-35.74%	-35.53%	-0.21%
Current Drawdown Current decline from peak	-0.47%	-0.60%	+0.13%
Average Drawdown Average peak-to-trough decline	-3.29%	-9.32%	+6.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.60%	1.58%	+0.02%

Volatility

QDEF vs. ILCV - Volatility Comparison

FlexShares Quality Dividend Defensive Index Fund (QDEF) has a higher volatility of 2.31% compared to iShares Morningstar Value ETF (ILCV) at 2.01%. This indicates that QDEF's price experiences larger fluctuations and is considered to be riskier than ILCV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QDEF	ILCV	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.31%	2.01%	+0.30%
Volatility (6M) Calculated over the trailing 6-month period	7.16%	6.97%	+0.19%
Volatility (1Y) Calculated over the trailing 1-year period	9.62%	9.82%	-0.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.78%	14.21%	-0.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.17%	16.66%	-0.49%

QDEF vs. ILCV - Expense Ratio Comparison

QDEF has a 0.37% expense ratio, which is higher than ILCV's 0.04% expense ratio.

Dividends

QDEF vs. ILCV - Dividend Comparison

QDEF's dividend yield for the trailing twelve months is around 1.59%, less than ILCV's 1.63% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ILCV iShares Morningstar Value ETF	1.63%	1.77%	1.99%	2.27%	2.32%	2.01%	2.96%	2.70%	2.93%	2.32%	2.76%	3.01%
QDEF FlexShares Quality Dividend Defensive Index Fund	1.59%	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 ILCV in my portfolio?

QDEF and ILCV 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, QDEF or ILCV?

QDEF has higher volatility (2.31%) compared to ILCV (2.01%). In terms of maximum drawdown, QDEF dropped -35.74% vs ILCV's -58.63%.

Which ETF is better, QDEF or ILCV?

On 10-year performance, QDEF leads with 12.34% vs 11.68% for ILCV. On fees, ILCV is cheaper at 0.04% per year. On volatility, ILCV has been the lower-risk option at 2.01%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QDEF or ILCV?

Over the 10-year period, QDEF has performed better with a 12.34% return vs 11.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QDEF or ILCV?

ILCV is cheaper with a 0.04% expense ratio, compared with 0.37% for QDEF.

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

ILCV has the higher dividend yield at 1.63%, compared with 1.59% for QDEF.

What is the main difference between QDEF and ILCV?

QDEF tracks Northern Trust Quality Dividend Defensive Index, while ILCV tracks Morningstar US Large-Mid Cap Broad Value Index. They also come from different issuers: FlexShares and iShares. Their fees differ too: 0.37% for QDEF and 0.04% for ILCV.

Which has better risk-adjusted returns?

ILCV currently has the higher Sharpe Ratio (2.72 vs 2.44), 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.