QDF vs. SPY

Last updated Jun 4, 2026

QDF (FlexShares Quality Dividend Index Fund) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - QDF is a Large Cap Value Equities fund tracking the Northern Trust Quality Dividend Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, QDF returned 12.18%/yr vs 15.49%/yr for SPY. Their correlation of 0.94 suggests significant overlap in exposure. QDF charges 0.37%/yr vs 0.09%/yr for SPY.

Performance

QDF vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Quality Dividend Index Fund (QDF) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with QDF having a 10.70% return and SPY slightly higher at 10.91%. Over the past 10 years, QDF has underperformed SPY with an annualized return of 12.18%, while SPY has yielded a comparatively higher 15.49% annualized return.

QDF

• 1D: -0.56%
• 1M: 4.60%
• YTD: 10.70%
• 6M: 10.82%
• 1Y: 27.64%
• 3Y*: 19.21%
• 5Y*: 11.90%
• 10Y*: 12.18%

SPY

• 1D: -0.70%
• 1M: 5.05%
• YTD: 10.91%
• 6M: 10.91%
• 1Y: 27.98%
• 3Y*: 22.35%
• 5Y*: 13.83%
• 10Y*: 15.49%

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

QDF vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QDF FlexShares Quality Dividend Index Fund	10.70%	16.58%	16.95%	19.71%	-12.13%	26.65%	4.86%	25.71%	-7.97%	17.42%
SPY State Street SPDR S&P 500 ETF	10.91%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between QDF and SPY is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Dec 20, 2012	0.94

The correlation between QDF and SPY has been stable across timeframes, ranging from 0.94 to 0.95 - a consistent structural relationship.

QDF vs. SPY - Sectors Allocation Comparison

Sectors	QDF	SPY
Technology	38.3%	35.9%
Financial Services	13.2%	11.8%
Industrials	8.9%	7.8%
Healthcare	8.3%	8.4%
Consumer Cyclical	6.9%	10.3%
Communication Services	6.8%	11.3%
Consumer Defensive	5.5%	4.8%
Real Estate	5.4%	1.9%
Utilities	2.1%	2.4%
Basic Materials	1.6%	1.8%
Energy	0.9%	3.6%

Return for Risk

QDF vs. SPY — Risk / Return Rank

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

QDF

QDF Risk / Return Rank: 73
QDF Sharpe Ratio Rank: 73
QDF Sortino Ratio Rank: 73
QDF Omega Ratio Rank: 73
QDF Calmar Ratio Rank: 70
QDF Martin Ratio Rank: 78

SPY

SPY Risk / Return Rank: 70
SPY Sharpe Ratio Rank: 71
SPY Sortino Ratio Rank: 69
SPY Omega Ratio Rank: 70
SPY Calmar Ratio Rank: 62
SPY Martin Ratio Rank: 75

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. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Quality Dividend Index Fund (QDF) and State Street SPDR S&P 500 ETF (SPY). 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.

	QDF	SPY	Difference
Sharpe ratio: Return per unit of total volatility	2.40	2.38	+0.02
Sortino ratio: Return per unit of downside risk	3.36	3.24	+0.12
Omega ratio: Gain probability vs. loss probability	1.44	1.43	+0.01
Calmar ratio: Return relative to maximum drawdown	3.52	3.16	+0.35
Martin ratio: Return relative to average drawdown	15.37	14.72	+0.66
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

QDF vs. SPY - Sharpe Ratio Comparison

The current QDF Sharpe Ratio is 2.40, which is comparable to the SPY Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of QDF and SPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	QDF	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.40	2.38	+0.02
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.77	0.82	-0.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.70	0.87	-0.16
Sharpe Ratio (All Time) Calculated using the full available price history	0.78	0.59	+0.20

Drawdowns

QDF vs. SPY - Drawdown Comparison

The maximum QDF drawdown since its inception was -36.67%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for QDF and SPY.

Drawdown Indicators

	QDF	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-36.67%	-55.19%	+18.52%
Max Drawdown (1Y) Largest decline over 1 year	-7.90%	-8.88%	+0.98%
Max Drawdown (3Y) Largest decline over 3 years	-18.01%	-18.76%	+0.75%
Max Drawdown (5Y) Largest decline over 5 years	-22.06%	-24.50%	+2.44%
Max Drawdown (10Y) Largest decline over 10 years	-36.67%	-33.72%	-2.95%
Current Drawdown Current decline from peak	-0.56%	-0.70%	+0.14%
Average Drawdown Average peak-to-trough decline	-3.65%	-9.05%	+5.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.80%	1.91%	-0.11%

Volatility

QDF vs. SPY - Volatility Comparison

FlexShares Quality Dividend Index Fund (QDF) and State Street SPDR S&P 500 ETF (SPY) have volatilities of 2.95% and 2.84%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QDF	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.95%	2.84%	+0.11%
Volatility (6M) Calculated over the trailing 6-month period	8.76%	8.90%	-0.14%
Volatility (1Y) Calculated over the trailing 1-year period	11.60%	11.83%	-0.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.60%	17.05%	-1.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.39%	17.94%	-0.55%

QDF vs. SPY - Expense Ratio Comparison

QDF has a 0.37% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

QDF vs. SPY - Dividend Comparison

QDF's dividend yield for the trailing twelve months is around 1.50%, more than SPY's 0.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QDF FlexShares Quality Dividend Index Fund	1.50%	1.65%	1.93%	2.19%	2.45%	1.90%	2.38%	3.05%	4.29%	2.70%	3.07%	3.04%
SPY State Street SPDR S&P 500 ETF	0.98%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both QDF and SPY in my portfolio?

With a correlation of 0.94, QDF and SPY 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, QDF or SPY?

QDF has higher volatility (2.95%) compared to SPY (2.84%). In terms of maximum drawdown, QDF dropped -36.67% vs SPY's -55.19%.

Which ETF is better, QDF or SPY?

On 10-year performance, SPY leads with 15.49% vs 12.18% for QDF. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 2.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QDF or SPY?

Over the 10-year period, SPY has performed better with a 15.49% return vs 12.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QDF or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.37% for QDF.

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

QDF has the higher dividend yield at 1.50%, compared with 0.98% for SPY.

What is the main difference between QDF and SPY?

QDF is categorized as Large Cap Value Equities, while SPY is S&P 500. QDF tracks Northern Trust Quality Dividend Index, while SPY tracks S&P 500 Index. They also come from different issuers: FlexShares and State Street. Their fees differ too: 0.37% for QDF and 0.09% for SPY.

Which has better risk-adjusted returns?

QDF currently has the higher Sharpe Ratio (2.40 vs 2.38), 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.