QLC vs. QDEF

Last updated Aug 5, 2026

QLC (FlexShares US Quality Large Cap Index Fund) and QDEF (FlexShares Quality Dividend Defensive Index Fund) are both Quality Factor funds - QLC tracks the Northern Trust Quality Large Cap Index while QDEF tracks the Northern Trust Quality Dividend Defensive Index. Both are passively managed. Over the past 10 years, QLC returned 14.87%/yr vs 12.23%/yr for QDEF. Their correlation of 0.85 means they have usually moved in the same direction. QLC charges 0.25%/yr vs 0.37%/yr for QDEF.

Performance

QLC vs. QDEF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares US Quality Large Cap Index Fund (QLC) and FlexShares Quality Dividend Defensive Index Fund (QDEF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, QLC achieves a 15.68% return, which is significantly higher than QDEF's 12.86% return. Over the past 10 years, QLC has outperformed QDEF with an annualized return of 14.87%, while QDEF has yielded a comparatively lower 12.23% annualized return.

QLC

• 1D: 1.86%
• 1M: 3.97%
• 6M: 14.01%
• YTD: 15.68%
• 1Y: 29.86%
• 3Y*: 24.86%
• 5Y*: 15.04%
• 10Y*: 14.87%
• ALL TIME*: 14.63%

QDEF

• 1D: 1.76%
• 1M: 3.87%
• 6M: 10.92%
• YTD: 12.86%
• 1Y: 21.79%
• 3Y*: 19.18%
• 5Y*: 12.69%
• 10Y*: 12.23%
• ALL TIME*: 12.88%

*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	$505.98K	$570.53K	$758.57K
QLC FlexShares US Quality Large Cap Index Fund	$3.27M	$4.10M	$3.64M

QLC vs. QDEF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QLC FlexShares US Quality Large Cap Index Fund	15.68%	23.26%	26.71%	26.02%	-17.21%	28.46%	13.64%	24.51%	-8.12%	21.73%
QDEF FlexShares Quality Dividend Defensive Index Fund	12.86%	17.43%	21.19%	17.48%	-10.94%	26.04%	3.15%	24.90%	-4.10%	17.04%

Correlation

The correlation between QLC and QDEF is 0.88, 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.	0.88
Correlation (3Y) Balances recent behavior with more history.	0.91
Correlation (5Y) Shows whether the relationship held over a longer period.	0.93
Correlation (10Y) Provides a long-term view across more market conditions.	0.89
Correlation (All Time) Calculated using the full available price history since Sep 24, 2015	0.85

The correlation between QLC and QDEF has been stable across timeframes, ranging from 0.85 to 0.93 - a consistent structural relationship.

QLC vs. QDEF - Sectors Allocation Comparison

Sectors	QLC	QDEF
Technology	38.0%	35.6%
Financial Services	13.6%	11.7%
Communication Services	10.2%	5.8%
Healthcare	10.0%	10.5%
Consumer Cyclical	7.2%	7.3%
Industrials	5.8%	5.5%
Utilities	3.8%	3.6%
Consumer Defensive	3.5%	7.3%
Real Estate	2.8%	3.9%
Energy	2.3%	4.2%
Basic Materials	2.1%	3.5%

Return for Risk

QLC vs. QDEF — Risk / Return Rank

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

QLC

QLC Risk / Return Rank: 86
QLC Sharpe Ratio Rank: 87
QLC Sortino Ratio Rank: 86
QLC Omega Ratio Rank: 85
QLC Calmar Ratio Rank: 82
QLC Martin Ratio Rank: 89

QDEF

QDEF Risk / Return Rank: 84
QDEF Sharpe Ratio Rank: 86
QDEF Sortino Ratio Rank: 86
QDEF Omega Ratio Rank: 86
QDEF Calmar Ratio Rank: 79
QDEF Martin Ratio Rank: 84

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.

QLC vs. QDEF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares US Quality Large Cap Index Fund (QLC) and FlexShares Quality Dividend Defensive Index Fund (QDEF). 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.

	QLC	QDEF	Difference
Sharpe ratio: Return per unit of total volatility	2.27	2.22	+0.05
Sortino ratio: Return per unit of downside risk	3.13	3.15	-0.02
Omega ratio: Gain probability vs. loss probability	1.40	1.41	-0.01
Calmar ratio: Return relative to maximum drawdown	3.39	3.15	+0.25
Martin ratio: Return relative to average drawdown	15.13	13.12	+2.02

QLC vs. QDEF - Sharpe Ratio Comparison

The current QLC Sharpe Ratio is 2.27, which is comparable to the QDEF Sharpe Ratio of 2.22. The chart below compares the historical Sharpe Ratios of QLC and QDEF, 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

QLC vs. QDEF - Drawdown Comparison

The maximum QLC drawdown since its inception was -35.86%, roughly equal to the maximum QDEF drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for QLC and QDEF.

Drawdown Indicators

	QLC	QDEF	Difference
Max Drawdown Largest peak-to-trough decline	-35.86%	-35.74%	-0.12%
Max Drawdown (1Y) Largest decline over 1 year	-8.84%	-6.95%	-1.89%
Max Drawdown (3Y) Largest decline over 3 years	-18.49%	-14.43%	-4.06%
Max Drawdown (5Y) Largest decline over 5 years	-23.81%	-21.37%	-2.44%
Max Drawdown (10Y) Largest decline over 10 years	-35.86%	-35.74%	-0.12%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.49%	-3.26%	-1.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.98%	1.66%	+0.32%

Volatility

QLC vs. QDEF - Volatility Comparison

FlexShares US Quality Large Cap Index Fund (QLC) has a higher volatility of 3.89% compared to FlexShares Quality Dividend Defensive Index Fund (QDEF) at 2.77%. This indicates that QLC's price experiences larger fluctuations and is considered to be riskier than QDEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QLC	QDEF	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.89%	2.77%	+1.12%
Volatility (6M) Calculated over the trailing 6-month period	10.51%	7.65%	+2.86%
Volatility (1Y) Calculated over the trailing 1-year period	13.30%	9.96%	+3.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.94%	13.79%	+3.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.41%	16.14%	+2.27%

QLC vs. QDEF - Expense Ratio Comparison

QLC has a 0.25% expense ratio, which is lower than QDEF's 0.37% expense ratio.

Dividends

QLC vs. QDEF - Dividend Comparison

QLC's dividend yield for the trailing twelve months is around 0.90%, less than QDEF's 1.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QDEF FlexShares Quality Dividend Defensive Index Fund	1.54%	1.74%	1.85%	2.21%	2.42%	1.84%	2.50%	3.17%	7.10%	2.70%	2.90%	3.00%
QLC FlexShares US Quality Large Cap Index Fund	0.90%	0.94%	1.03%	1.26%	1.46%	0.96%	1.40%	1.91%	1.82%	1.29%	1.80%	0.64%

Frequently Asked Questions

Can I hold both QLC and QDEF in my portfolio?

QLC and QDEF have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QLC or QDEF?

QLC has higher volatility (3.89%) compared to QDEF (2.77%). In terms of maximum drawdown, QLC dropped -35.86% vs QDEF's -35.74%.

Which ETF is better, QLC or QDEF?

On 10-year performance, QLC leads with 14.87% vs 12.23% for QDEF. On fees, QLC is cheaper at 0.25% per year. On volatility, QDEF has been the lower-risk option at 2.77%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QLC or QDEF?

Over the 10-year period, QLC has performed better with a 14.87% return vs 12.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QLC or QDEF?

QLC is cheaper with a 0.25% expense ratio, compared with 0.37% for QDEF.

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

QDEF has the higher dividend yield at 1.54%, compared with 0.90% for QLC.

What is the main difference between QLC and QDEF?

QLC tracks Northern Trust Quality Large Cap Index, while QDEF tracks Northern Trust Quality Dividend Defensive Index. They also come from different issuers: Northern Trust and FlexShares. Their fees differ too: 0.25% for QLC and 0.37% for QDEF.

Which has better risk-adjusted returns?

QLC currently has the higher Sharpe Ratio (2.27 vs 2.22), 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.