QLVE vs. VFQY

Last updated Aug 2, 2026

QLVE (FlexShares Emerging Markets Quality Low Volatility Index Fund) and VFQY (Vanguard U.S. Quality Factor ETF) are both Quality Factor funds. QLVE is passively managed, while VFQY is actively managed. Over the past 5 years, QLVE returned 7.60%/yr vs 8.92%/yr for VFQY. Their 0.62 correlation means they have sometimes moved together and sometimes differently. QLVE charges 0.40%/yr vs 0.13%/yr for VFQY.

Performance

QLVE vs. VFQY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Emerging Markets Quality Low Volatility Index Fund (QLVE) 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 QLVE having a 12.92% return and VFQY slightly higher at 13.01%.

QLVE

• 1D: -0.06%
• 1M: 0.53%
• 6M: 7.16%
• YTD: 12.92%
• 1Y: 23.59%
• 3Y*: 15.27%
• 5Y*: 7.60%
• 10Y*: —
• ALL TIME*: 6.66%

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)
QLVE FlexShares Emerging Markets Quality Low Volatility Index Fund	$2.76K	$7.65K	$20.86K
VFQY Vanguard U.S. Quality Factor ETF	$877.35K	$995.36K	$1.05M

QLVE vs. VFQY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
QLVE FlexShares Emerging Markets Quality Low Volatility Index Fund	12.92%	21.87%	10.17%	8.53%	-13.10%	0.90%	4.16%	4.77%
VFQY Vanguard U.S. Quality Factor ETF	13.01%	10.24%	12.93%	22.48%	-15.74%	27.96%	16.97%	8.23%

Correlation

The correlation between QLVE and VFQY is 0.50, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.50
Correlation (3Y) Balances recent behavior with more history.	0.55
Correlation (5Y) Shows whether the relationship held over a longer period.	0.60
Correlation (All Time) Calculated using the full available price history since Jul 16, 2019	0.62

The correlation between QLVE and VFQY shifts across timeframes, from 0.50 (1 year) to 0.62 (all time), reflecting how their relationship changes across market environments.

QLVE vs. VFQY - Sectors Allocation Comparison

Sectors	QLVE	VFQY
Technology	35.7%	25.8%
Financial Services	14.3%	18.9%
Communication Services	10.0%	2.8%
Energy	6.3%	2.2%
Consumer Defensive	6.3%	9.2%
Consumer Cyclical	4.9%	13.3%
Healthcare	4.8%	8.9%
Industrials	3.3%	16.8%
Utilities	2.7%	-
Basic Materials	1.9%	2.2%
Real Estate	0.7%	-

Return for Risk

QLVE vs. VFQY — Risk / Return Rank

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

QLVE

QLVE Risk / Return Rank: 52
QLVE Sharpe Ratio Rank: 48
QLVE Sortino Ratio Rank: 47
QLVE Omega Ratio Rank: 53
QLVE Calmar Ratio Rank: 55
QLVE Martin Ratio Rank: 55

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.

QLVE vs. VFQY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Emerging Markets Quality Low Volatility Index Fund (QLVE) 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.

	QLVE	VFQY	Difference
Sharpe ratio: Return per unit of total volatility	1.18	1.54	-0.36
Sortino ratio: Return per unit of downside risk	1.73	2.25	-0.52
Omega ratio: Gain probability vs. loss probability	1.24	1.27	-0.03
Calmar ratio: Return relative to maximum drawdown	1.98	2.26	-0.28
Martin ratio: Return relative to average drawdown	6.52	8.53	-2.02

QLVE vs. VFQY - Sharpe Ratio Comparison

The current QLVE Sharpe Ratio is 1.18, which is comparable to the VFQY Sharpe Ratio of 1.54. The chart below compares the historical Sharpe Ratios of QLVE 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

QLVE vs. VFQY - Drawdown Comparison

The maximum QLVE drawdown since its inception was -29.96%, smaller than the maximum VFQY drawdown of -37.41%. Use the drawdown chart below to compare losses from any high point for QLVE and VFQY.

Drawdown Indicators

	QLVE	VFQY	Difference
Max Drawdown Largest peak-to-trough decline	-29.96%	-37.41%	+7.45%
Max Drawdown (1Y) Largest decline over 1 year	-11.60%	-9.12%	-2.48%
Max Drawdown (3Y) Largest decline over 3 years	-13.29%	-20.67%	+7.38%
Max Drawdown (5Y) Largest decline over 5 years	-23.60%	-25.93%	+2.33%
Current Drawdown Current decline from peak	-5.59%	-0.61%	-4.98%
Average Drawdown Average peak-to-trough decline	-8.21%	-6.57%	-1.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.51%	2.41%	+1.10%

Volatility

QLVE vs. VFQY - Volatility Comparison

FlexShares Emerging Markets Quality Low Volatility Index Fund (QLVE) has a higher volatility of 6.73% compared to Vanguard U.S. Quality Factor ETF (VFQY) at 2.96%. This indicates that QLVE's price experiences larger fluctuations and is considered to be riskier than VFQY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QLVE	VFQY	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.73%	2.96%	+3.77%
Volatility (6M) Calculated over the trailing 6-month period	17.12%	9.55%	+7.57%
Volatility (1Y) Calculated over the trailing 1-year period	19.46%	13.41%	+6.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.20%	18.28%	-4.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.14%	20.73%	-4.59%

QLVE vs. VFQY - Expense Ratio Comparison

QLVE has a 0.40% expense ratio, which is higher than VFQY's 0.13% expense ratio.

Dividends

QLVE vs. VFQY - Dividend Comparison

QLVE's dividend yield for the trailing twelve months is around 2.68%, more than VFQY's 1.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
QLVE FlexShares Emerging Markets Quality Low Volatility Index Fund	2.68%	3.14%	3.11%	3.00%	2.48%	2.57%	1.66%	1.27%	0.00%
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%

Frequently Asked Questions

Can I hold both QLVE and VFQY in my portfolio?

QLVE and VFQY have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QLVE or VFQY?

QLVE has higher volatility (6.73%) compared to VFQY (2.96%). In terms of maximum drawdown, QLVE dropped -29.96% vs VFQY's -37.41%.

Which ETF is better, QLVE or VFQY?

On 5-year performance, VFQY leads with 8.92% vs 7.60% for QLVE. On fees, VFQY is cheaper at 0.13% per year. On volatility, VFQY has been the lower-risk option at 2.96%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QLVE or VFQY?

Over the 5-year period, VFQY has performed better with a 8.92% return vs 7.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QLVE or VFQY?

VFQY is cheaper with a 0.13% expense ratio, compared with 0.40% for QLVE.

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

QLVE has the higher dividend yield at 2.68%, compared with 1.04% for VFQY.

What is the main difference between QLVE and VFQY?

They also come from different issuers: Northern Trust and Vanguard. Their fees differ too: 0.40% for QLVE and 0.13% for VFQY.

Which has better risk-adjusted returns?

VFQY currently has the higher Sharpe Ratio (1.54 vs 1.18), 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.