TILT vs. DEF

Last updated Jun 4, 2026

TILT (FlexShares Morningstar US Market Factor Tilt Index Fund) and DEF (Invesco Defensive Equity ETF) are both exchange-traded funds - TILT is a Large Cap Blend Equities fund tracking the Morningstar US Market Factor Tilt Index, while DEF is a Large Cap Growth Equities fund tracking the Invesco Defensive Equity Index. Both are passively managed. Over the past 10 years, TILT returned 13.96%/yr vs 10.28%/yr for DEF. Their correlation of 0.81 suggests significant overlap in exposure. TILT charges 0.25%/yr vs 0.53%/yr for DEF.

Performance

TILT vs. DEF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) and Invesco Defensive Equity ETF (DEF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TILT achieves a 10.68% return, which is significantly higher than DEF's -2.29% return. Over the past 10 years, TILT has outperformed DEF with an annualized return of 13.96%, while DEF has yielded a comparatively lower 10.28% annualized return.

TILT

• 1D: -0.67%
• 1M: 4.39%
• YTD: 10.68%
• 6M: 10.81%
• 1Y: 28.46%
• 3Y*: 20.80%
• 5Y*: 11.59%
• 10Y*: 13.96%

DEF

• 1D: 0.04%
• 1M: 0.44%
• YTD: -2.29%
• 6M: -2.55%
• 1Y: 4.21%
• 3Y*: 10.86%
• 5Y*: 7.41%
• 10Y*: 10.28%

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

TILT vs. DEF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TILT FlexShares Morningstar US Market Factor Tilt Index Fund	10.68%	16.59%	19.88%	24.70%	-17.25%	27.61%	16.05%	29.01%	-8.93%	18.33%
DEF Invesco Defensive Equity ETF	-2.29%	11.71%	13.18%	10.58%	-7.67%	24.93%	7.61%	27.98%	-3.96%	21.52%

Correlation

The correlation between TILT and DEF is 0.78, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.82
Correlation (All Time) Calculated using the full available price history since Sep 23, 2011	0.81

The correlation between TILT and DEF has been stable across timeframes, ranging from 0.78 to 0.83 - a consistent structural relationship.

TILT vs. DEF - Sectors Allocation Comparison

Sectors	TILT	DEF
Technology	27.2%	12.1%
Financial Services	16.0%	16.1%
Consumer Cyclical	10.9%	10.1%
Industrials	10.1%	15.6%
Healthcare	9.4%	16.8%
Communication Services	8.6%	4.7%
Energy	4.8%	1.0%
Consumer Defensive	4.7%	12.9%
Real Estate	3.1%	3.8%
Basic Materials	2.7%	2.1%
Utilities	2.4%	4.8%

Return for Risk

TILT vs. DEF — Risk / Return Rank

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

TILT

TILT Risk / Return Rank: 71
TILT Sharpe Ratio Rank: 71
TILT Sortino Ratio Rank: 70
TILT Omega Ratio Rank: 70
TILT Calmar Ratio Rank: 68
TILT Martin Ratio Rank: 77

DEF

DEF Risk / Return Rank: 14
DEF Sharpe Ratio Rank: 14
DEF Sortino Ratio Rank: 13
DEF Omega Ratio Rank: 13
DEF Calmar Ratio Rank: 14
DEF Martin Ratio Rank: 15

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.

TILT vs. DEF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) and Invesco Defensive Equity ETF (DEF). 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.

	TILT	DEF	Difference
Sharpe ratio: Return per unit of total volatility	2.33	0.36	+1.97
Sortino ratio: Return per unit of downside risk	3.22	0.61	+2.61
Omega ratio: Gain probability vs. loss probability	1.42	1.07	+0.35
Calmar ratio: Return relative to maximum drawdown	3.36	0.43	+2.93
Martin ratio: Return relative to average drawdown	14.71	1.18	+13.54
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TILT vs. DEF - Sharpe Ratio Comparison

The current TILT Sharpe Ratio is 2.33, which is higher than the DEF Sharpe Ratio of 0.36. The chart below compares the historical Sharpe Ratios of TILT and DEF, 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

	TILT	DEF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.33	0.36	+1.97
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.67	0.54	+0.14
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.75	0.64	+0.10
Sharpe Ratio (All Time) Calculated using the full available price history	0.83	0.54	+0.29

Drawdowns

TILT vs. DEF - Drawdown Comparison

The maximum TILT drawdown since its inception was -38.46%, smaller than the maximum DEF drawdown of -47.91%. Use the drawdown chart below to compare losses from any high point for TILT and DEF.

Drawdown Indicators

	TILT	DEF	Difference
Max Drawdown Largest peak-to-trough decline	-38.46%	-47.91%	+9.45%
Max Drawdown (1Y) Largest decline over 1 year	-8.51%	-9.76%	+1.25%
Max Drawdown (3Y) Largest decline over 3 years	-19.85%	-15.00%	-4.85%
Max Drawdown (5Y) Largest decline over 5 years	-24.12%	-17.75%	-6.37%
Max Drawdown (10Y) Largest decline over 10 years	-38.46%	-36.53%	-1.93%
Current Drawdown Current decline from peak	-0.67%	-6.44%	+5.77%
Average Drawdown Average peak-to-trough decline	-4.23%	-6.24%	+2.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.94%	3.59%	-1.65%

Volatility

TILT vs. DEF - Volatility Comparison

FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) and Invesco Defensive Equity ETF (DEF) have volatilities of 3.04% and 3.12%, 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

	TILT	DEF	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.04%	3.12%	-0.08%
Volatility (6M) Calculated over the trailing 6-month period	8.95%	8.80%	+0.15%
Volatility (1Y) Calculated over the trailing 1-year period	12.29%	11.73%	+0.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.39%	13.92%	+3.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.75%	16.05%	+2.70%

TILT vs. DEF - Expense Ratio Comparison

TILT has a 0.25% expense ratio, which is lower than DEF's 0.53% expense ratio.

Dividends

TILT vs. DEF - Dividend Comparison

TILT's dividend yield for the trailing twelve months is around 1.07%, more than DEF's 0.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEF Invesco Defensive Equity ETF	0.96%	0.94%	0.79%	1.60%	1.48%	1.06%	1.34%	1.16%	1.39%	1.63%	2.18%	3.31%
TILT FlexShares Morningstar US Market Factor Tilt Index Fund	1.07%	1.15%	1.23%	1.44%	1.60%	1.16%	1.49%	1.54%	1.97%	1.55%	1.60%	1.98%

Frequently Asked Questions

Can I hold both TILT and DEF in my portfolio?

TILT and DEF have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TILT or DEF?

DEF has higher volatility (3.12%) compared to TILT (3.04%). In terms of maximum drawdown, TILT dropped -38.46% vs DEF's -47.91%.

Which ETF is better, TILT or DEF?

On 10-year performance, TILT leads with 13.96% vs 10.28% for DEF. On fees, TILT is cheaper at 0.25% 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, TILT or DEF?

Over the 10-year period, TILT has performed better with a 13.96% return vs 10.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TILT or DEF?

TILT is cheaper with a 0.25% expense ratio, compared with 0.53% for DEF.

Which ETF pays a higher dividend yield, TILT or DEF?

TILT has the higher dividend yield at 1.07%, compared with 0.96% for DEF.

What is the main difference between TILT and DEF?

TILT is categorized as Large Cap Blend Equities, while DEF is Large Cap Growth Equities. TILT tracks Morningstar US Market Factor Tilt Index, while DEF tracks Invesco Defensive Equity Index. They also come from different issuers: FlexShares and Invesco. Their fees differ too: 0.25% for TILT and 0.53% for DEF.

Which has better risk-adjusted returns?

TILT currently has the higher Sharpe Ratio (2.33 vs 0.36), 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.