QDEF vs. SCHB

Last updated Jun 24, 2026

QDEF (FlexShares Quality Dividend Defensive Index Fund) and SCHB (Schwab U.S. Broad Market ETF) are both exchange-traded funds - QDEF is a Large Cap Value Equities fund tracking the Northern Trust Quality Dividend Defensive Index, while SCHB is a Large Cap Blend Equities fund tracking the Dow Jones U.S. Broad Stock Market Index. Both are passively managed. Over the past 10 years, QDEF returned 12.28%/yr vs 15.12%/yr for SCHB. Their correlation of 0.90 suggests significant overlap in exposure. QDEF charges 0.37%/yr vs 0.03%/yr for SCHB.

Performance

QDEF vs. SCHB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Quality Dividend Defensive Index Fund (QDEF) and Schwab U.S. Broad Market ETF (SCHB). 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 SCHB's 8.88% return. Over the past 10 years, QDEF has underperformed SCHB with an annualized return of 12.28%, while SCHB has yielded a comparatively higher 15.12% 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%

SCHB

• 1D: -1.39%
• 1M: -0.87%
• YTD: 8.88%
• 6M: 7.77%
• 1Y: 24.10%
• 3Y*: 20.64%
• 5Y*: 11.98%
• 10Y*: 15.12%

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

QDEF vs. SCHB - 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%
SCHB Schwab U.S. Broad Market ETF	8.88%	16.94%	23.93%	26.16%	-19.46%	25.84%	20.76%	30.79%	-5.43%	21.20%

Correlation

The correlation between QDEF and SCHB is 0.90, 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	0.90
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	0.92
Correlation (All Time) Calculated using the full available price history since Dec 19, 2012	0.90

The correlation between QDEF and SCHB has been stable across timeframes, ranging from 0.90 to 0.93 - a consistent structural relationship.

QDEF vs. SCHB - Sectors Allocation Comparison

Sectors	QDEF	SCHB
Technology	35.4%	37.3%
Healthcare	11.2%	8.8%
Financial Services	10.9%	11.4%
Communication Services	7.3%	9.8%
Consumer Defensive	7.2%	4.3%
Consumer Cyclical	7.2%	9.8%
Industrials	6.4%	9.1%
Real Estate	5.3%	2.3%
Energy	3.5%	3.3%
Basic Materials	2.9%	1.9%
Utilities	2.8%	2.1%

Return for Risk

QDEF vs. SCHB — 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

SCHB

SCHB Risk / Return Rank: 59
SCHB Sharpe Ratio Rank: 58
SCHB Sortino Ratio Rank: 56
SCHB Omega Ratio Rank: 57
SCHB Calmar Ratio Rank: 57
SCHB Martin Ratio Rank: 68

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. SCHB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Quality Dividend Defensive Index Fund (QDEF) and Schwab U.S. Broad Market ETF (SCHB). 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	SCHB	Difference
Sharpe ratio: Return per unit of total volatility	2.12	1.89	+0.23
Sortino ratio: Return per unit of downside risk	3.00	2.58	+0.42
Omega ratio: Gain probability vs. loss probability	1.39	1.34	+0.05
Calmar ratio: Return relative to maximum drawdown	2.98	2.72	+0.26
Martin ratio: Return relative to average drawdown	12.62	12.04	+0.57

QDEF vs. SCHB - Sharpe Ratio Comparison

The current QDEF Sharpe Ratio is 2.12, which is comparable to the SCHB Sharpe Ratio of 1.89. The chart below compares the historical Sharpe Ratios of QDEF and SCHB, 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. SCHB - Drawdown Comparison

The maximum QDEF drawdown since its inception was -35.74%, roughly equal to the maximum SCHB drawdown of -35.27%. Use the drawdown chart below to compare losses from any high point for QDEF and SCHB.

Drawdown Indicators

	QDEF	SCHB	Difference
Max Drawdown Largest peak-to-trough decline	-35.74%	-35.27%	-0.47%
Max Drawdown (1Y) Largest decline over 1 year	-6.95%	-8.91%	+1.96%
Max Drawdown (3Y) Largest decline over 3 years	-14.43%	-19.34%	+4.91%
Max Drawdown (5Y) Largest decline over 5 years	-21.37%	-25.41%	+4.04%
Max Drawdown (10Y) Largest decline over 10 years	-35.74%	-35.27%	-0.47%
Current Drawdown Current decline from peak	-2.35%	-2.86%	+0.51%
Average Drawdown Average peak-to-trough decline	-3.29%	-4.11%	+0.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.64%	2.01%	-0.37%

Volatility

QDEF vs. SCHB - Volatility Comparison

The current volatility for FlexShares Quality Dividend Defensive Index Fund (QDEF) is 3.06%, while Schwab U.S. Broad Market ETF (SCHB) has a volatility of 5.00%. This indicates that QDEF experiences smaller price fluctuations and is considered to be less risky than SCHB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QDEF	SCHB	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.06%	5.00%	-1.94%
Volatility (6M) Calculated over the trailing 6-month period	7.51%	10.09%	-2.58%
Volatility (1Y) Calculated over the trailing 1-year period	9.83%	12.83%	-3.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.80%	17.35%	-3.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.16%	18.34%	-2.18%

QDEF vs. SCHB - Expense Ratio Comparison

QDEF has a 0.37% expense ratio, which is higher than SCHB's 0.03% expense ratio.

Dividends

QDEF vs. SCHB - Dividend Comparison

QDEF's dividend yield for the trailing twelve months is around 1.63%, more than SCHB's 1.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
SCHB Schwab U.S. Broad Market ETF	1.04%	1.11%	1.24%	1.40%	1.61%	1.21%	1.63%	1.80%	2.00%	1.65%	1.86%	2.00%

Frequently Asked Questions

Can I hold both QDEF and SCHB in my portfolio?

With a correlation of 0.90, QDEF and SCHB 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, QDEF or SCHB?

SCHB has higher volatility (5.00%) compared to QDEF (3.06%). In terms of maximum drawdown, QDEF dropped -35.74% vs SCHB's -35.27%.

Which ETF is better, QDEF or SCHB?

On 10-year performance, SCHB leads with 15.12% vs 12.28% for QDEF. On fees, SCHB is cheaper at 0.03% 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 SCHB?

Over the 10-year period, SCHB has performed better with a 15.12% 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 SCHB?

SCHB is cheaper with a 0.03% expense ratio, compared with 0.37% for QDEF.

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

QDEF has the higher dividend yield at 1.63%, compared with 1.04% for SCHB.

What is the main difference between QDEF and SCHB?

QDEF is categorized as Large Cap Value Equities, while SCHB is Large Cap Blend Equities. QDEF tracks Northern Trust Quality Dividend Defensive Index, while SCHB tracks Dow Jones U.S. Broad Stock Market Index. They also come from different issuers: FlexShares and Charles Schwab. Their fees differ too: 0.37% for QDEF and 0.03% for SCHB.

Which has better risk-adjusted returns?

QDEF currently has the higher Sharpe Ratio (2.12 vs 1.89), 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.