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QUAL vs. QDEF
Performance
Return for Risk
Drawdowns
Volatility
Dividends

QUAL vs. QDEF

Last updated Aug 4, 2026
Documentation

QUAL (iShares MSCI USA Quality Factor ETF) and QDEF (FlexShares Quality Dividend Defensive Index Fund) are both Quality Factor funds - QUAL tracks the MSCI USA Sector Neutral Quality Index while QDEF tracks the Northern Trust Quality Dividend Defensive Index. Both are passively managed. Over the past 10 years, QUAL returned 14.16%/yr vs 12.03%/yr for QDEF. Their correlation of 0.90 means they have usually moved in the same direction. QUAL charges 0.15%/yr vs 0.37%/yr for QDEF.

Performance

QUAL vs. QDEF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Quality Factor ETF (QUAL) and FlexShares Quality Dividend Defensive Index Fund (QDEF). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, QUAL achieves a 12.08% return, which is significantly higher than QDEF's 10.91% return. Over the past 10 years, QUAL has outperformed QDEF with an annualized return of 14.16%, while QDEF has yielded a comparatively lower 12.03% annualized return.

QUAL

1D
1.10%
1M
1.52%
6M
9.27%
YTD
12.08%
1Y
22.77%
3Y*
18.73%
5Y*
11.26%
10Y*
14.16%
ALL TIME*
13.75%

QDEF

1D
0.39%
1M
2.07%
6M
8.51%
YTD
10.91%
1Y
21.44%
3Y*
18.49%
5Y*
12.40%
10Y*
12.03%
ALL TIME*
12.74%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

PositionAvg. Volume Value (2W)Avg. Volume Value (1M)Avg. Volume Value (3M)

QDEF

FlexShares Quality Dividend Defensive Index Fund
$574.46K$566.98K$752.75K

QUAL

iShares MSCI USA Quality Factor ETF
$217.13M$238.90M$384.89M

QUAL vs. QDEF - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
QUAL
iShares MSCI USA Quality Factor ETF		12.08%12.65%22.29%30.88%-20.50%26.94%17.04%33.89%-5.70%22.26%
QDEF
FlexShares Quality Dividend Defensive Index Fund		10.91%17.43%21.19%17.48%-10.94%26.04%3.15%24.90%-4.10%17.04%

Correlation

The correlation between QUAL and QDEF is 0.89, 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.

0.89

Correlation (3Y)
Balances recent behavior with more history.

0.91

Correlation (5Y)
Shows whether the relationship held over a longer period.

0.92

Correlation (10Y)
Provides a long-term view across more market conditions.

0.92

Correlation (All Time)
Calculated using the full available price history since Jul 18, 2013

0.90

The correlation between QUAL and QDEF has been stable across timeframes, ranging from 0.89 to 0.92 - a consistent structural relationship.

QUAL vs. QDEF - Sectors Allocation Comparison

Sectors
QUAL
QDEF

Technology

40.2%
35.6%

Financial Services

10.9%
11.7%

Communication Services

10.3%
5.8%

Healthcare

9.2%
10.5%

Consumer Cyclical

9.0%
7.3%

Industrials

7.4%
5.5%

Consumer Defensive

4.3%
7.3%

Energy

2.9%
4.2%

Utilities

2.1%
3.6%

Basic Materials

1.9%
3.5%

Real Estate

1.7%
3.9%

Technology

QUAL
40.2%
QDEF
35.6%

Financial Services

QUAL
10.9%
QDEF
11.7%

Communication Services

QUAL
10.3%
QDEF
5.8%

Healthcare

QUAL
9.2%
QDEF
10.5%

Consumer Cyclical

QUAL
9.0%
QDEF
7.3%

Industrials

QUAL
7.4%
QDEF
5.5%

Consumer Defensive

QUAL
4.3%
QDEF
7.3%

Energy

QUAL
2.9%
QDEF
4.2%

Utilities

QUAL
2.1%
QDEF
3.6%

Basic Materials

QUAL
1.9%
QDEF
3.5%

Real Estate

QUAL
1.7%
QDEF
3.9%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares MSCI USA Quality Factor ETF

FlexShares Quality Dividend Defensive Index Fund

Often compared with QUAL:
QUAL vs. SPHQQUAL vs. SPYQUAL vs. MTUMQUAL vs. USMVQUAL vs. VOOQUAL vs. IVVQUAL vs. SCHD
Often compared with QDEF:
QDEF vs. QDFQDEF vs. SCHDQDEF vs. DGRWQDEF vs. ^SP500TRQDEF vs. QDIVQDEF vs. SCHBQDEF vs. COWZ

Return for Risk

QUAL vs. QDEF — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.
QUAL
QUAL Risk / Return Rank: 7878
Overall Rank
QUAL Sharpe Ratio Rank: 8080
Sharpe Ratio Rank
QUAL Sortino Ratio Rank: 8080
Sortino Ratio Rank
QUAL Omega Ratio Rank: 7878
Omega Ratio Rank
QUAL Calmar Ratio Rank: 7171
Calmar Ratio Rank
QUAL Martin Ratio Rank: 8383
Martin Ratio Rank
QDEF
QDEF Risk / Return Rank: 8686
Overall Rank
QDEF Sharpe Ratio Rank: 8888
Sharpe Ratio Rank
QDEF Sortino Ratio Rank: 8888
Sortino Ratio Rank
QDEF Omega Ratio Rank: 8888
Omega Ratio Rank
QDEF Calmar Ratio Rank: 8181
Calmar Ratio Rank
QDEF Martin Ratio Rank: 8686
Martin Ratio Rank
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.

QUAL vs. QDEF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality Factor ETF (QUAL) 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.

QUALQDEFDifference
Sharpe ratioReturn per unit of total volatility
1.86
2.19

-0.33

Sortino ratioReturn per unit of downside risk
2.63
3.10

-0.47

Omega ratioGain probability vs. loss probability

1.33

1.41

-0.08

Calmar ratioReturn relative to maximum drawdown

2.53

3.10

-0.56

Martin ratioReturn relative to average drawdown

11.33

12.91

-1.57

QUAL vs. QDEF - Sharpe Ratio Comparison

The current QUAL Sharpe Ratio is 1.86, which is comparable to the QDEF Sharpe Ratio of 2.19. The chart below compares the historical Sharpe Ratios of QUAL 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.

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Drawdowns

QUAL vs. QDEF - Drawdown Comparison

The maximum QUAL drawdown since its inception was -34.06%, roughly equal to the maximum QDEF drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for QUAL and QDEF.

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Drawdown Indicators

QUALQDEFDifference

Max Drawdown

Largest peak-to-trough decline

-34.06%

-35.74%

+1.68%

Max Drawdown (1Y)

Largest decline over 1 year

-9.03%

-6.95%

-2.08%

Max Drawdown (3Y)

Largest decline over 3 years

-18.00%

-14.43%

-3.57%

Max Drawdown (5Y)

Largest decline over 5 years

-28.23%

-21.37%

-6.86%

Max Drawdown (10Y)

Largest decline over 10 years

-34.06%

-35.74%

+1.68%

Current Drawdown

Current decline from peak

0.00%

-0.19%

+0.19%

Average Drawdown

Average peak-to-trough decline

-4.07%

-3.27%

-0.80%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.01%

1.66%

+0.35%

Volatility

QUAL vs. QDEF - Volatility Comparison

iShares MSCI USA Quality Factor ETF (QUAL) has a higher volatility of 3.07% compared to FlexShares Quality Dividend Defensive Index Fund (QDEF) at 2.23%. This indicates that QUAL'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.

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Volatility by Period

QUALQDEFDifference

Volatility (1M)

Calculated over the trailing 1-month period

3.07%

2.23%

+0.84%

Volatility (6M)

Calculated over the trailing 6-month period

9.70%

7.47%

+2.23%

Volatility (1Y)

Calculated over the trailing 1-year period

12.33%

9.84%

+2.49%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.39%

13.77%

+3.62%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.10%

16.14%

+1.96%

QUAL vs. QDEF - Expense Ratio Comparison

QUAL has a 0.15% expense ratio, which is lower than QDEF's 0.37% expense ratio.

Dividends

QUAL vs. QDEF - Dividend Comparison

QUAL's dividend yield for the trailing twelve months is around 0.85%, less than QDEF's 1.57% yield.

PositionTTM20252024202320222021202020192018201720162015
QDEF
FlexShares Quality Dividend Defensive Index Fund		1.57%1.74%1.85%2.21%2.42%1.84%2.50%3.17%7.10%2.70%2.90%3.00%
QUAL
iShares MSCI USA Quality Factor ETF		0.85%0.94%1.02%1.23%1.59%1.20%1.39%1.60%2.00%1.76%1.96%1.63%

Frequently Asked Questions

QUAL and QDEF have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

QUAL has higher volatility (3.07%) compared to QDEF (2.23%). In terms of maximum drawdown, QUAL dropped -34.06% vs QDEF's -35.74%.

On 10-year performance, QUAL leads with 14.16% vs 12.03% for QDEF. On fees, QUAL is cheaper at 0.15% per year. On volatility, QDEF has been the lower-risk option at 2.23%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, QUAL has performed better with a 14.16% return vs 12.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

QUAL is cheaper with a 0.15% expense ratio, compared with 0.37% for QDEF.

QDEF has the higher dividend yield at 1.57%, compared with 0.85% for QUAL.

QUAL tracks MSCI USA Sector Neutral Quality Index, while QDEF tracks Northern Trust Quality Dividend Defensive Index. They also come from different issuers: iShares and FlexShares. Their fees differ too: 0.15% for QUAL and 0.37% for QDEF.

QDEF currently has the higher Sharpe Ratio (2.19 vs 1.86), 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.

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