QDF vs. VFQY

Last updated Aug 2, 2026

QDF (FlexShares Quality Dividend Index Fund) and VFQY (Vanguard U.S. Quality Factor ETF) are both Quality Factor funds. QDF is passively managed, while VFQY is actively managed. Over the past 5 years, QDF returned 11.93%/yr vs 8.92%/yr for VFQY. Their correlation of 0.90 means they have usually moved in the same direction. QDF charges 0.37%/yr vs 0.13%/yr for VFQY.

Performance

QDF vs. VFQY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Quality Dividend Index Fund (QDF) and Vanguard U.S. Quality Factor ETF (VFQY). 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 12.96% return and VFQY slightly higher at 13.01%.

QDF

• 1D: -0.15%
• 1M: 1.30%
• 6M: 10.89%
• YTD: 12.96%
• 1Y: 24.58%
• 3Y*: 16.91%
• 5Y*: 11.93%
• 10Y*: 12.04%
• ALL TIME*: 12.68%

VFQY

• 1D: -0.04%
• 1M: 1.15%
• 6M: 10.45%
• YTD: 13.01%
• 1Y: 22.01%
• 3Y*: 14.60%
• 5Y*: 8.92%
• 10Y*: —
• ALL TIME*: 11.49%

*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)
QDF FlexShares Quality Dividend Index Fund	$1.70M	$2.15M	$2.21M
VFQY Vanguard U.S. Quality Factor ETF	$877.35K	$995.36K	$1.05M

QDF vs. VFQY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
QDF FlexShares Quality Dividend Index Fund	12.96%	16.58%	16.95%	19.71%	-12.13%	26.65%	4.86%	25.71%	-7.52%
VFQY Vanguard U.S. Quality Factor ETF	13.01%	10.24%	12.93%	22.48%	-15.74%	27.96%	16.97%	25.75%	-8.19%

Correlation

The correlation between QDF and VFQY is 0.82, 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.	0.82
Correlation (3Y) Balances recent behavior with more history.	0.89
Correlation (5Y) Shows whether the relationship held over a longer period.	0.91
Correlation (All Time) Calculated using the full available price history since Feb 15, 2018	0.90

The correlation between QDF and VFQY has been stable across timeframes, ranging from 0.82 to 0.91 - a consistent structural relationship.

QDF vs. VFQY - Sectors Allocation Comparison

Sectors	QDF	VFQY
Technology	37.0%	25.8%
Financial Services	14.8%	18.9%
Healthcare	9.1%	8.9%
Industrials	8.7%	16.8%
Consumer Cyclical	7.1%	13.3%
Consumer Defensive	5.7%	9.2%
Real Estate	5.6%	-
Communication Services	5.4%	2.8%
Utilities	2.2%	-
Basic Materials	1.5%	2.2%
Energy	0.9%	2.2%

Return for Risk

QDF vs. VFQY — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

QDF

QDF Risk / Return Rank: 83
QDF Sharpe Ratio Rank: 83
QDF Sortino Ratio Rank: 82
QDF Omega Ratio Rank: 82
QDF Calmar Ratio Rank: 81
QDF Martin Ratio Rank: 87

VFQY

VFQY Risk / Return Rank: 67
VFQY Sharpe Ratio Rank: 68
VFQY Sortino Ratio Rank: 69
VFQY Omega Ratio Rank: 62
VFQY Calmar Ratio Rank: 65
VFQY Martin Ratio Rank: 70

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.

QDF vs. VFQY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Quality Dividend Index Fund (QDF) and Vanguard U.S. Quality Factor ETF (VFQY). 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	VFQY	Difference
Sharpe ratio: Return per unit of total volatility	1.91	1.54	+0.37
Sortino ratio: Return per unit of downside risk	2.69	2.25	+0.45
Omega ratio: Gain probability vs. loss probability	1.35	1.27	+0.08
Calmar ratio: Return relative to maximum drawdown	2.95	2.26	+0.69
Martin ratio: Return relative to average drawdown	12.68	8.53	+4.15

QDF vs. VFQY - Sharpe Ratio Comparison

The current QDF Sharpe Ratio is 1.91, which is comparable to the VFQY Sharpe Ratio of 1.54. The chart below compares the historical Sharpe Ratios of QDF and VFQY, 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. VFQY - Drawdown Comparison

The maximum QDF drawdown since its inception was -36.67%, roughly equal to the maximum VFQY drawdown of -37.41%. Use the drawdown chart below to compare losses from any high point for QDF and VFQY.

Drawdown Indicators

	QDF	VFQY	Difference
Max Drawdown Largest peak-to-trough decline	-36.67%	-37.41%	+0.74%
Max Drawdown (1Y) Largest decline over 1 year	-7.90%	-9.12%	+1.22%
Max Drawdown (3Y) Largest decline over 3 years	-18.01%	-20.67%	+2.66%
Max Drawdown (5Y) Largest decline over 5 years	-22.06%	-25.93%	+3.87%
Max Drawdown (10Y) Largest decline over 10 years	-36.67%	—	—
Current Drawdown Current decline from peak	-0.72%	-0.61%	-0.11%
Average Drawdown Average peak-to-trough decline	-3.61%	-6.57%	+2.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.84%	2.41%	-0.57%

Volatility

QDF vs. VFQY - Volatility Comparison

FlexShares Quality Dividend Index Fund (QDF) and Vanguard U.S. Quality Factor ETF (VFQY) have volatilities of 2.96% and 2.96%, 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	VFQY	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.96%	2.96%	0.00%
Volatility (6M) Calculated over the trailing 6-month period	9.43%	9.55%	-0.12%
Volatility (1Y) Calculated over the trailing 1-year period	12.20%	13.41%	-1.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.64%	18.28%	-2.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.37%	20.73%	-3.36%

QDF vs. VFQY - Expense Ratio Comparison

QDF has a 0.37% expense ratio, which is higher than VFQY's 0.13% expense ratio.

Dividends

QDF vs. VFQY - Dividend Comparison

QDF's dividend yield for the trailing twelve months is around 1.48%, more than VFQY's 1.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QDF FlexShares Quality Dividend Index Fund	1.48%	1.65%	1.93%	2.19%	2.45%	1.90%	2.38%	3.05%	4.29%	2.70%	3.07%	3.04%
VFQY Vanguard U.S. Quality Factor ETF	1.04%	1.17%	1.34%	1.38%	1.43%	0.98%	1.22%	1.34%	1.31%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both QDF and VFQY in my portfolio?

QDF and VFQY 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 VFQY?

VFQY has higher volatility (2.96%) compared to QDF (2.96%). In terms of maximum drawdown, QDF dropped -36.67% vs VFQY's -37.41%.

Which ETF is better, QDF or VFQY?

On 5-year performance, QDF leads with 11.93% vs 8.92% for VFQY. On fees, VFQY is cheaper at 0.13% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QDF or VFQY?

Over the 5-year period, QDF has performed better with a 11.93% return vs 8.92%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QDF or VFQY?

VFQY is cheaper with a 0.13% expense ratio, compared with 0.37% for QDF.

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

QDF has the higher dividend yield at 1.48%, compared with 1.04% for VFQY.

What is the main difference between QDF and VFQY?

They also come from different issuers: FlexShares and Vanguard. Their fees differ too: 0.37% for QDF and 0.13% for VFQY.

Which has better risk-adjusted returns?

QDF currently has the higher Sharpe Ratio (1.91 vs 1.54), 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.