QDEF vs. MGV

Last updated Jun 24, 2026

QDEF (FlexShares Quality Dividend Defensive Index Fund) and MGV (Vanguard Mega Cap Value ETF) are both Large Cap Value Equities funds - QDEF tracks the Northern Trust Quality Dividend Defensive Index while MGV tracks the CRSP US Mega Cap Value Index. Both are passively managed. Over the past 10 years, QDEF returned 12.28%/yr vs 13.34%/yr for MGV. Their correlation of 0.87 suggests significant overlap in exposure. QDEF charges 0.37%/yr vs 0.05%/yr for MGV.

Performance

QDEF vs. MGV - Performance Comparison

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

Returns By Period

In the year-to-date period, QDEF achieves a 6.76% return, which is significantly lower than MGV's 15.89% return. Over the past 10 years, QDEF has underperformed MGV with an annualized return of 12.28%, while MGV has yielded a comparatively higher 13.34% annualized return.

QDEF

• 1D: -0.48%
• 1M: -1.73%
• YTD: 6.76%
• 6M: 5.91%
• 1Y: 20.63%
• 3Y*: 18.58%
• 5Y*: 12.34%
• 10Y*: 12.28%

MGV

• 1D: -0.82%
• 1M: 3.65%
• YTD: 15.89%
• 6M: 15.48%
• 1Y: 28.43%
• 3Y*: 19.53%
• 5Y*: 12.99%
• 10Y*: 13.34%

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

QDEF vs. MGV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QDEF FlexShares Quality Dividend Defensive Index Fund	6.76%	17.43%	21.19%	17.48%	-10.94%	26.04%	3.15%	24.90%	-4.10%	17.04%
MGV Vanguard Mega Cap Value ETF	15.89%	15.45%	16.94%	9.16%	-1.22%	25.93%	2.50%	25.54%	-4.13%	16.85%

Correlation

The correlation between QDEF and MGV is 0.76, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (10Y) Calculated over the trailing 10-year period	0.88
Correlation (All Time) Calculated using the full available price history since Dec 19, 2012	0.87

The correlation between QDEF and MGV shifts across timeframes, from 0.76 (1 year) to 0.88 (10 years), reflecting how their relationship changes across market environments.

QDEF vs. MGV - Sectors Allocation Comparison

Sectors	QDEF	MGV
Technology	35.4%	18.5%
Healthcare	11.2%	16.0%
Financial Services	10.9%	22.8%
Communication Services	7.3%	3.2%
Consumer Defensive	7.2%	11.0%
Consumer Cyclical	7.2%	3.4%
Industrials	6.4%	13.2%
Real Estate	5.3%	1.2%
Energy	3.5%	6.0%
Basic Materials	2.9%	2.3%
Utilities	2.8%	2.3%

Return for Risk

QDEF vs. MGV — Risk / Return Rank

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

QDEF

QDEF Risk / Return Rank: 69
QDEF Sharpe Ratio Rank: 69
QDEF Sortino Ratio Rank: 70
QDEF Omega Ratio Rank: 70
QDEF Calmar Ratio Rank: 64
QDEF Martin Ratio Rank: 72

MGV

MGV Risk / Return Rank: 87
MGV Sharpe Ratio Rank: 89
MGV Sortino Ratio Rank: 90
MGV Omega Ratio Rank: 86
MGV Calmar Ratio Rank: 84
MGV Martin Ratio Rank: 85

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. MGV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Quality Dividend Defensive Index Fund (QDEF) and Vanguard Mega Cap Value ETF (MGV). 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	MGV	Difference
Sharpe ratio: Return per unit of total volatility	2.12	2.81	-0.70
Sortino ratio: Return per unit of downside risk	3.00	3.99	-1.00
Omega ratio: Gain probability vs. loss probability	1.39	1.50	-0.12
Calmar ratio: Return relative to maximum drawdown	2.98	4.45	-1.47
Martin ratio: Return relative to average drawdown	12.62	16.89	-4.28

QDEF vs. MGV - Sharpe Ratio Comparison

The current QDEF Sharpe Ratio is 2.12, which is comparable to the MGV Sharpe Ratio of 2.81. The chart below compares the historical Sharpe Ratios of QDEF and MGV, 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. MGV - Drawdown Comparison

The maximum QDEF drawdown since its inception was -35.74%, smaller than the maximum MGV drawdown of -56.07%. Use the drawdown chart below to compare losses from any high point for QDEF and MGV.

Drawdown Indicators

	QDEF	MGV	Difference
Max Drawdown Largest peak-to-trough decline	-35.74%	-56.07%	+20.33%
Max Drawdown (1Y) Largest decline over 1 year	-6.95%	-6.42%	-0.53%
Max Drawdown (3Y) Largest decline over 3 years	-14.43%	-13.18%	-1.25%
Max Drawdown (5Y) Largest decline over 5 years	-21.37%	-16.54%	-4.83%
Max Drawdown (10Y) Largest decline over 10 years	-35.74%	-35.41%	-0.33%
Current Drawdown Current decline from peak	-2.35%	-0.82%	-1.53%
Average Drawdown Average peak-to-trough decline	-3.29%	-7.77%	+4.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.64%	1.69%	-0.05%

Volatility

QDEF vs. MGV - Volatility Comparison

The current volatility for FlexShares Quality Dividend Defensive Index Fund (QDEF) is 3.06%, while Vanguard Mega Cap Value ETF (MGV) has a volatility of 3.49%. This indicates that QDEF experiences smaller price fluctuations and is considered to be less risky than MGV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QDEF	MGV	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.06%	3.49%	-0.43%
Volatility (6M) Calculated over the trailing 6-month period	7.51%	7.82%	-0.31%
Volatility (1Y) Calculated over the trailing 1-year period	9.83%	10.18%	-0.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.80%	13.58%	+0.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.16%	16.32%	-0.16%

QDEF vs. MGV - Expense Ratio Comparison

QDEF has a 0.37% expense ratio, which is higher than MGV's 0.05% expense ratio.

Dividends

QDEF vs. MGV - Dividend Comparison

QDEF's dividend yield for the trailing twelve months is around 1.63%, less than MGV's 1.84% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MGV Vanguard Mega Cap Value ETF	1.84%	2.04%	2.31%	2.48%	2.45%	2.17%	2.47%	2.69%	2.65%	2.34%	2.53%	2.59%
QDEF FlexShares Quality Dividend Defensive Index Fund	1.63%	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 MGV in my portfolio?

QDEF and MGV have a correlation of 0.76, 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 MGV?

MGV has higher volatility (3.49%) compared to QDEF (3.06%). In terms of maximum drawdown, QDEF dropped -35.74% vs MGV's -56.07%.

Which ETF is better, QDEF or MGV?

On 10-year performance, MGV leads with 13.34% vs 12.28% for QDEF. On fees, MGV is cheaper at 0.05% per year. On volatility, QDEF has been the lower-risk option at 3.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QDEF or MGV?

Over the 10-year period, MGV has performed better with a 13.34% return vs 12.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QDEF or MGV?

MGV is cheaper with a 0.05% expense ratio, compared with 0.37% for QDEF.

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

MGV has the higher dividend yield at 1.84%, compared with 1.63% for QDEF.

What is the main difference between QDEF and MGV?

QDEF tracks Northern Trust Quality Dividend Defensive Index, while MGV tracks CRSP US Mega Cap Value Index. They also come from different issuers: FlexShares and Vanguard. Their fees differ too: 0.37% for QDEF and 0.05% for MGV.

Which has better risk-adjusted returns?

MGV currently has the higher Sharpe Ratio (2.81 vs 2.12), 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.