QDEF vs. SPHQ

Last updated Aug 2, 2026

QDEF (FlexShares Quality Dividend Defensive Index Fund) and SPHQ (Invesco S&P 500 Quality ETF) are both Quality Factor funds - QDEF tracks the Northern Trust Quality Dividend Defensive Index while SPHQ tracks the S&P 500 Quality Index. Both are passively managed. Over the past 10 years, QDEF returned 12.14%/yr vs 14.60%/yr for SPHQ. Their correlation of 0.88 means they have usually moved in the same direction. QDEF charges 0.37%/yr vs 0.15%/yr for SPHQ.

Performance

QDEF vs. SPHQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Quality Dividend Defensive Index Fund (QDEF) and Invesco S&P 500 Quality ETF (SPHQ). 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 SPHQ's 13.51% return. Over the past 10 years, QDEF has underperformed SPHQ with an annualized return of 12.14%, while SPHQ has yielded a comparatively higher 14.60% 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%

SPHQ

• 1D: -0.47%
• 1M: -3.64%
• 6M: 10.07%
• YTD: 13.51%
• 1Y: 21.02%
• 3Y*: 18.91%
• 5Y*: 12.73%
• 10Y*: 14.60%
• ALL TIME*: 10.01%

*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)
QDEF FlexShares Quality Dividend Defensive Index Fund	$546.87K	$522.47K	$732.31K
SPHQ Invesco S&P 500 Quality ETF	$119.48M	$136.23M	$143.26M

QDEF vs. SPHQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
SPHQ Invesco S&P 500 Quality ETF	13.51%	13.25%	25.44%	24.83%	-15.76%	28.03%	17.36%	33.64%	-7.10%	19.10%

Correlation

The correlation between QDEF and SPHQ is 0.75, 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.	0.75
Correlation (3Y) Balances recent behavior with more history.	0.85
Correlation (5Y) Shows whether the relationship held over a longer period.	0.89
Correlation (10Y) Provides a long-term view across more market conditions.	0.89
Correlation (All Time) Calculated using the full available price history since Dec 19, 2012	0.88

The correlation between QDEF and SPHQ shifts across timeframes, from 0.75 (1 year) to 0.89 (10 years), reflecting how their relationship changes across market environments.

QDEF vs. SPHQ - Sectors Allocation Comparison

Sectors	QDEF	SPHQ
Technology	35.6%	41.2%
Financial Services	11.7%	15.2%
Healthcare	10.5%	3.2%
Consumer Defensive	7.3%	7.5%
Consumer Cyclical	7.3%	5.3%
Communication Services	5.8%	6.4%
Industrials	5.5%	17.7%
Energy	4.2%	1.0%
Real Estate	3.9%	-
Utilities	3.6%	4.5%
Basic Materials	3.5%	2.5%

Return for Risk

QDEF vs. SPHQ — 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

SPHQ

SPHQ Risk / Return Rank: 62
SPHQ Sharpe Ratio Rank: 59
SPHQ Sortino Ratio Rank: 61
SPHQ Omega Ratio Rank: 56
SPHQ Calmar Ratio Rank: 66
SPHQ Martin Ratio Rank: 67

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. SPHQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Quality Dividend Defensive Index Fund (QDEF) and Invesco S&P 500 Quality ETF (SPHQ). 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	SPHQ	Difference
Sharpe ratio: Return per unit of total volatility	2.07	1.39	+0.68
Sortino ratio: Return per unit of downside risk	2.94	2.02	+0.92
Omega ratio: Gain probability vs. loss probability	1.38	1.24	+0.14
Calmar ratio: Return relative to maximum drawdown	2.93	2.26	+0.66
Martin ratio: Return relative to average drawdown	12.20	8.07	+4.13

QDEF vs. SPHQ - Sharpe Ratio Comparison

The current QDEF Sharpe Ratio is 2.07, which is higher than the SPHQ Sharpe Ratio of 1.39. The chart below compares the historical Sharpe Ratios of QDEF and SPHQ, 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. SPHQ - Drawdown Comparison

The maximum QDEF drawdown since its inception was -35.74%, smaller than the maximum SPHQ drawdown of -57.83%. Use the drawdown chart below to compare losses from any high point for QDEF and SPHQ.

Drawdown Indicators

	QDEF	SPHQ	Difference
Max Drawdown Largest peak-to-trough decline	-35.74%	-57.83%	+22.09%
Max Drawdown (1Y) Largest decline over 1 year	-6.95%	-8.90%	+1.95%
Max Drawdown (3Y) Largest decline over 3 years	-14.43%	-16.57%	+2.14%
Max Drawdown (5Y) Largest decline over 5 years	-21.37%	-25.04%	+3.67%
Max Drawdown (10Y) Largest decline over 10 years	-35.74%	-31.60%	-4.14%
Current Drawdown Current decline from peak	-0.58%	-6.03%	+5.45%
Average Drawdown Average peak-to-trough decline	-3.27%	-10.64%	+7.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.67%	2.49%	-0.82%

Volatility

QDEF vs. SPHQ - Volatility Comparison

The current volatility for FlexShares Quality Dividend Defensive Index Fund (QDEF) is 2.29%, while Invesco S&P 500 Quality ETF (SPHQ) has a volatility of 4.84%. This indicates that QDEF experiences smaller price fluctuations and is considered to be less risky than SPHQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QDEF	SPHQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.29%	4.84%	-2.55%
Volatility (6M) Calculated over the trailing 6-month period	7.47%	12.44%	-4.97%
Volatility (1Y) Calculated over the trailing 1-year period	9.85%	14.53%	-4.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.77%	16.74%	-2.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.14%	17.97%	-1.83%

QDEF vs. SPHQ - Expense Ratio Comparison

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

Dividends

QDEF vs. SPHQ - Dividend Comparison

QDEF's dividend yield for the trailing twelve months is around 1.58%, more than SPHQ's 1.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
SPHQ Invesco S&P 500 Quality ETF	1.10%	1.09%	1.15%	1.42%	1.85%	1.19%	1.55%	1.51%	1.85%	1.57%	1.67%	2.29%

Frequently Asked Questions

Can I hold both QDEF and SPHQ in my portfolio?

QDEF and SPHQ have a correlation of 0.75, 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 SPHQ?

SPHQ has higher volatility (4.84%) compared to QDEF (2.29%). In terms of maximum drawdown, QDEF dropped -35.74% vs SPHQ's -57.83%.

Which ETF is better, QDEF or SPHQ?

On 10-year performance, SPHQ leads with 14.60% vs 12.14% for QDEF. On fees, SPHQ 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 SPHQ?

Over the 10-year period, SPHQ has performed better with a 14.60% return vs 12.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QDEF or SPHQ?

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

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

QDEF has the higher dividend yield at 1.58%, compared with 1.10% for SPHQ.

What is the main difference between QDEF and SPHQ?

QDEF tracks Northern Trust Quality Dividend Defensive Index, while SPHQ tracks S&P 500 Quality Index. They also come from different issuers: FlexShares and Invesco. Their fees differ too: 0.37% for QDEF and 0.15% for SPHQ.

Which has better risk-adjusted returns?

QDEF currently has the higher Sharpe Ratio (2.07 vs 1.39), 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.