QDF vs. QQQ

Last updated Jun 23, 2026

QDF (FlexShares Quality Dividend Index Fund) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - QDF is a Large Cap Value Equities fund tracking the Northern Trust Quality Dividend Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, QDF returned 12.49%/yr vs 22.48%/yr for QQQ. A 0.80 correlation means they provide meaningful diversification when combined. QDF charges 0.37%/yr vs 0.18%/yr for QQQ.

Performance

QDF vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Quality Dividend Index Fund (QDF) and Invesco QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, QDF achieves a 11.19% return, which is significantly lower than QQQ's 20.41% return. Over the past 10 years, QDF has underperformed QQQ with an annualized return of 12.49%, while QQQ has yielded a comparatively higher 22.48% annualized return.

QDF

• 1D: -0.08%
• 1M: 0.95%
• YTD: 11.19%
• 6M: 10.56%
• 1Y: 28.48%
• 3Y*: 19.05%
• 5Y*: 12.35%
• 10Y*: 12.49%

QQQ

• 1D: -0.25%
• 1M: 2.96%
• YTD: 20.41%
• 6M: 19.46%
• 1Y: 40.91%
• 3Y*: 27.47%
• 5Y*: 16.94%
• 10Y*: 22.48%

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

QDF vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QDF FlexShares Quality Dividend Index Fund	11.19%	16.58%	16.95%	19.71%	-12.13%	26.65%	4.86%	25.71%	-7.97%	17.42%
QQQ Invesco QQQ ETF	20.41%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between QDF and QQQ is 0.82, 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	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.84
Correlation (10Y) Calculated over the trailing 10-year period	0.79
Correlation (All Time) Calculated using the full available price history since Dec 19, 2012	0.80

The correlation between QDF and QQQ has been stable across timeframes, ranging from 0.79 to 0.84 - a consistent structural relationship.

QDF vs. QQQ - Sectors Allocation Comparison

Sectors	QDF	QQQ
Technology	39.5%	58.7%
Financial Services	11.5%	0.2%
Healthcare	9.6%	3.7%
Industrials	9.1%	2.6%
Communication Services	7.2%	14.3%
Consumer Cyclical	6.4%	11.4%
Consumer Defensive	5.7%	6.4%
Real Estate	5.4%	0.1%
Energy	3.4%	0.5%
Utilities	1.8%	1.2%
Basic Materials	0.4%	1.0%

Return for Risk

QDF vs. QQQ — Risk / Return Rank

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

QDF

QDF Risk / Return Rank: 78
QDF Sharpe Ratio Rank: 77
QDF Sortino Ratio Rank: 78
QDF Omega Ratio Rank: 77
QDF Calmar Ratio Rank: 74
QDF Martin Ratio Rank: 81

QQQ

QQQ Risk / Return Rank: 72
QQQ Sharpe Ratio Rank: 76
QQQ Sortino Ratio Rank: 70
QQQ Omega Ratio Rank: 72
QQQ Calmar Ratio Rank: 70
QQQ Martin Ratio Rank: 71

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.

QDF vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Quality Dividend Index Fund (QDF) and Invesco QQQ ETF (QQQ). 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.

	QDF	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	2.39	2.33	+0.06
Sortino ratio: Return per unit of downside risk	3.32	3.03	+0.29
Omega ratio: Gain probability vs. loss probability	1.44	1.41	+0.03
Calmar ratio: Return relative to maximum drawdown	3.62	3.44	+0.19
Martin ratio: Return relative to average drawdown	15.61	12.79	+2.82

QDF vs. QQQ - Sharpe Ratio Comparison

The current QDF Sharpe Ratio is 2.39, which is comparable to the QQQ Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of QDF and QQQ, 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

QDF vs. QQQ - Drawdown Comparison

The maximum QDF drawdown since its inception was -36.67%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for QDF and QQQ.

Drawdown Indicators

	QDF	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-36.67%	-82.97%	+46.30%
Max Drawdown (1Y) Largest decline over 1 year	-7.90%	-11.96%	+4.06%
Max Drawdown (3Y) Largest decline over 3 years	-18.01%	-22.77%	+4.76%
Max Drawdown (5Y) Largest decline over 5 years	-22.06%	-35.12%	+13.06%
Max Drawdown (10Y) Largest decline over 10 years	-36.67%	-35.12%	-1.55%
Current Drawdown Current decline from peak	-0.33%	-0.99%	+0.66%
Average Drawdown Average peak-to-trough decline	-3.64%	-32.73%	+29.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.83%	3.21%	-1.38%

Volatility

QDF vs. QQQ - Volatility Comparison

The current volatility for FlexShares Quality Dividend Index Fund (QDF) is 4.05%, while Invesco QQQ ETF (QQQ) has a volatility of 8.47%. This indicates that QDF experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QDF	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.05%	8.47%	-4.42%
Volatility (6M) Calculated over the trailing 6-month period	9.32%	14.20%	-4.88%
Volatility (1Y) Calculated over the trailing 1-year period	12.00%	17.67%	-5.67%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.65%	22.64%	-6.99%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.42%	22.43%	-5.01%

QDF vs. QQQ - Expense Ratio Comparison

QDF has a 0.37% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

QDF vs. QQQ - Dividend Comparison

QDF's dividend yield for the trailing twelve months is around 1.51%, more than QQQ's 0.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QDF FlexShares Quality Dividend Index Fund	1.51%	1.65%	1.93%	2.19%	2.45%	1.90%	2.38%	3.05%	4.29%	2.70%	3.07%	3.04%
QQQ Invesco QQQ ETF	0.49%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%

Frequently Asked Questions

Can I hold both QDF and QQQ in my portfolio?

QDF and QQQ have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QDF or QQQ?

QQQ has higher volatility (8.47%) compared to QDF (4.05%). In terms of maximum drawdown, QDF dropped -36.67% vs QQQ's -82.97%.

Which ETF is better, QDF or QQQ?

On 10-year performance, QQQ leads with 22.48% vs 12.49% for QDF. On fees, QQQ is cheaper at 0.18% per year. On volatility, QDF has been the lower-risk option at 4.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QDF or QQQ?

Over the 10-year period, QQQ has performed better with a 22.48% return vs 12.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QDF or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.37% for QDF.

Which ETF pays a higher dividend yield, QDF or QQQ?

QDF has the higher dividend yield at 1.51%, compared with 0.49% for QQQ.

What is the main difference between QDF and QQQ?

QDF is categorized as Large Cap Value Equities, while QQQ is Nasdaq-100. QDF tracks Northern Trust Quality Dividend Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: FlexShares and Invesco. Their fees differ too: 0.37% for QDF and 0.18% for QQQ.

Which has better risk-adjusted returns?

QDF currently has the higher Sharpe Ratio (2.39 vs 2.33), 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.