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QDEF vs. QUAL
Performance
Return for Risk
Drawdowns
Volatility
Dividends

QDEF vs. QUAL

Last updated Aug 2, 2026
Documentation

QDEF (FlexShares Quality Dividend Defensive Index Fund) and QUAL (iShares MSCI USA Quality Factor ETF) are both Quality Factor funds - QDEF tracks the Northern Trust Quality Dividend Defensive Index while QUAL tracks the MSCI USA Sector Neutral Quality Index. Both are passively managed. Over the past 10 years, QDEF returned 12.14%/yr vs 14.15%/yr for QUAL. Their correlation of 0.90 means they have usually moved in the same direction. QDEF charges 0.37%/yr vs 0.15%/yr for QUAL.

Performance

QDEF vs. QUAL - 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 Factor ETF (QUAL). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

The year-to-date returns for both investments are quite close, with QDEF having a 10.48% return and QUAL slightly higher at 10.86%. Over the past 10 years, QDEF has underperformed QUAL with an annualized return of 12.14%, while QUAL has yielded a comparatively higher 14.15% annualized 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%

QUAL

1D
0.18%
1M
0.41%
6M
8.77%
YTD
10.86%
1Y
21.43%
3Y*
17.38%
5Y*
11.11%
10Y*
14.15%
ALL TIME*
13.66%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

PositionAvg. Volume Value (2W)Avg. Volume Value (1M)Avg. Volume Value (3M)

QDEF

FlexShares Quality Dividend Defensive Index Fund
$546.87K$522.47K$732.31K

QUAL

iShares MSCI USA Quality Factor ETF
$216.39M$244.32M$382.94M

QDEF vs. QUAL - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
QDEF
FlexShares Quality Dividend Defensive Index Fund		10.48%17.43%21.19%17.48%-10.94%26.04%3.15%24.90%-4.10%17.04%
QUAL
iShares MSCI USA Quality Factor ETF		10.86%12.65%22.29%30.88%-20.50%26.94%17.04%33.89%-5.70%22.26%

Correlation

The correlation between QDEF and QUAL is 0.89, 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.

0.89

Correlation (3Y)
Balances recent behavior with more history.

0.91

Correlation (5Y)
Shows whether the relationship held over a longer period.

0.92

Correlation (10Y)
Provides a long-term view across more market conditions.

0.92

Correlation (All Time)
Calculated using the full available price history since Jul 18, 2013

0.90

The correlation between QDEF and QUAL has been stable across timeframes, ranging from 0.89 to 0.92 - a consistent structural relationship.

QDEF vs. QUAL - Sectors Allocation Comparison

Sectors
QDEF
QUAL

Technology

35.6%
40.2%

Financial Services

11.7%
10.9%

Healthcare

10.5%
9.2%

Consumer Defensive

7.3%
4.3%

Consumer Cyclical

7.3%
9.0%

Communication Services

5.8%
10.3%

Industrials

5.5%
7.4%

Energy

4.2%
2.9%

Real Estate

3.9%
1.7%

Utilities

3.6%
2.1%

Basic Materials

3.5%
1.9%

Technology

QDEF
35.6%
QUAL
40.2%

Financial Services

QDEF
11.7%
QUAL
10.9%

Healthcare

QDEF
10.5%
QUAL
9.2%

Consumer Defensive

QDEF
7.3%
QUAL
4.3%

Consumer Cyclical

QDEF
7.3%
QUAL
9.0%

Communication Services

QDEF
5.8%
QUAL
10.3%

Industrials

QDEF
5.5%
QUAL
7.4%

Energy

QDEF
4.2%
QUAL
2.9%

Real Estate

QDEF
3.9%
QUAL
1.7%

Utilities

QDEF
3.6%
QUAL
2.1%

Basic Materials

QDEF
3.5%
QUAL
1.9%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

FlexShares Quality Dividend Defensive Index Fund

iShares MSCI USA Quality Factor ETF

Often compared with QDEF:
QDEF vs. QDFQDEF vs. SCHDQDEF vs. DGRWQDEF vs. ^SP500TRQDEF vs. QDIVQDEF vs. SCHBQDEF vs. COWZ
Often compared with QUAL:
QUAL vs. SPHQQUAL vs. SPYQUAL vs. MTUMQUAL vs. USMVQUAL vs. VOOQUAL vs. IVVQUAL vs. SCHD

Return for Risk

QDEF vs. QUAL — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.
QDEF
QDEF Risk / Return Rank: 8585
Overall Rank
QDEF Sharpe Ratio Rank: 8787
Sharpe Ratio Rank
QDEF Sortino Ratio Rank: 8787
Sortino Ratio Rank
QDEF Omega Ratio Rank: 8787
Omega Ratio Rank
QDEF Calmar Ratio Rank: 8181
Calmar Ratio Rank
QDEF Martin Ratio Rank: 8686
Martin Ratio Rank
QUAL
QUAL Risk / Return Rank: 7272
Overall Rank
QUAL Sharpe Ratio Rank: 7474
Sharpe Ratio Rank
QUAL Sortino Ratio Rank: 7474
Sortino Ratio Rank
QUAL Omega Ratio Rank: 7171
Omega Ratio Rank
QUAL Calmar Ratio Rank: 6565
Calmar Ratio Rank
QUAL Martin Ratio Rank: 7979
Martin Ratio Rank
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. QUAL - 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 Factor ETF (QUAL). 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.

QDEFQUALDifference
Sharpe ratioReturn per unit of total volatility
2.07
1.65

+0.42

Sortino ratioReturn per unit of downside risk
2.94
2.36

+0.58

Omega ratioGain probability vs. loss probability

1.38

1.29

+0.09

Calmar ratioReturn relative to maximum drawdown

2.93

2.25

+0.67

Martin ratioReturn relative to average drawdown

12.20

10.08

+2.12

QDEF vs. QUAL - Sharpe Ratio Comparison

The current QDEF Sharpe Ratio is 2.07, which is comparable to the QUAL Sharpe Ratio of 1.65. The chart below compares the historical Sharpe Ratios of QDEF and QUAL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

QDEF vs. QUAL - Drawdown Comparison

The maximum QDEF drawdown since its inception was -35.74%, roughly equal to the maximum QUAL drawdown of -34.06%. Use the drawdown chart below to compare losses from any high point for QDEF and QUAL.

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Drawdown Indicators

QDEFQUALDifference

Max Drawdown

Largest peak-to-trough decline

-35.74%

-34.06%

-1.68%

Max Drawdown (1Y)

Largest decline over 1 year

-6.95%

-9.03%

+2.08%

Max Drawdown (3Y)

Largest decline over 3 years

-14.43%

-18.00%

+3.57%

Max Drawdown (5Y)

Largest decline over 5 years

-21.37%

-28.23%

+6.86%

Max Drawdown (10Y)

Largest decline over 10 years

-35.74%

-34.06%

-1.68%

Current Drawdown

Current decline from peak

-0.58%

-0.61%

+0.03%

Average Drawdown

Average peak-to-trough decline

-3.27%

-4.07%

+0.80%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.67%

2.01%

-0.34%

Volatility

QDEF vs. QUAL - Volatility Comparison

The current volatility for FlexShares Quality Dividend Defensive Index Fund (QDEF) is 2.29%, while iShares MSCI USA Quality Factor ETF (QUAL) has a volatility of 2.88%. This indicates that QDEF experiences smaller price fluctuations and is considered to be less risky than QUAL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

QDEFQUALDifference

Volatility (1M)

Calculated over the trailing 1-month period

2.29%

2.88%

-0.59%

Volatility (6M)

Calculated over the trailing 6-month period

7.47%

9.72%

-2.25%

Volatility (1Y)

Calculated over the trailing 1-year period

9.85%

12.33%

-2.48%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

13.77%

17.38%

-3.61%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

16.14%

18.09%

-1.95%

QDEF vs. QUAL - Expense Ratio Comparison

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

Dividends

QDEF vs. QUAL - Dividend Comparison

QDEF's dividend yield for the trailing twelve months is around 1.58%, more than QUAL's 0.86% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
QUAL
iShares MSCI USA Quality Factor ETF		0.86%0.94%1.02%1.23%1.59%1.20%1.39%1.60%2.00%1.76%1.96%1.63%

Frequently Asked Questions

QDEF and QUAL 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.

QUAL has higher volatility (2.88%) compared to QDEF (2.29%). In terms of maximum drawdown, QDEF dropped -35.74% vs QUAL's -34.06%.

On 10-year performance, QUAL leads with 14.15% vs 12.14% for QDEF. On fees, QUAL 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.

Over the 10-year period, QUAL has performed better with a 14.15% return vs 12.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

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

QDEF has the higher dividend yield at 1.58%, compared with 0.86% for QUAL.

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

QDEF currently has the higher Sharpe Ratio (2.07 vs 1.65), 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.

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