TLTE vs. IQDY

Last updated Jun 26, 2026

TLTE (FlexShares Morningstar Emerging Markets Factor Tilt Index) and IQDY (FlexShares International Quality Dividend Dynamic Index Fund) are both Foreign Large Cap Equities funds from Northern Trust - TLTE tracks the Morningstar Emerging Markets Factor Tilt Index while IQDY tracks the Northern Trust International Quality Dividend Dynamic Index. Both are passively managed. Over the past 10 years, TLTE returned 9.71%/yr vs 12.21%/yr for IQDY. A 0.78 correlation means they provide meaningful diversification when combined. TLTE charges 0.59%/yr vs 0.47%/yr for IQDY.

Performance

TLTE vs. IQDY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) and FlexShares International Quality Dividend Dynamic Index Fund (IQDY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TLTE achieves a 21.06% return, which is significantly higher than IQDY's 17.90% return. Over the past 10 years, TLTE has underperformed IQDY with an annualized return of 9.71%, while IQDY has yielded a comparatively higher 12.21% annualized return.

TLTE

• 1D: 0.85%
• 1M: -1.94%
• YTD: 21.06%
• 6M: 21.52%
• 1Y: 37.50%
• 3Y*: 21.24%
• 5Y*: 7.30%
• 10Y*: 9.71%

IQDY

• 1D: 1.14%
• 1M: 0.62%
• YTD: 17.90%
• 6M: 17.74%
• 1Y: 38.52%
• 3Y*: 24.40%
• 5Y*: 11.82%
• 10Y*: 12.21%

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

TLTE vs. IQDY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index	21.06%	30.21%	3.53%	13.62%	-17.31%	4.79%	12.10%	14.51%	-17.44%	32.82%
IQDY FlexShares International Quality Dividend Dynamic Index Fund	17.90%	37.44%	5.97%	23.45%	-15.78%	12.00%	9.54%	27.27%	-20.04%	24.06%

Correlation

The correlation between TLTE and IQDY is 0.84, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Apr 16, 2013	0.78

The correlation between TLTE and IQDY has been stable across timeframes, ranging from 0.78 to 0.87 - a consistent structural relationship.

TLTE vs. IQDY - Sectors Allocation Comparison

Sectors	TLTE	IQDY
Technology	33.5%	21.3%
Financial Services	17.7%	25.5%
Industrials	10.5%	13.8%
Consumer Cyclical	9.9%	8.7%
Basic Materials	7.0%	7.9%
Communication Services	4.2%	3.3%
Real Estate	4.1%	1.2%
Consumer Defensive	3.7%	3.4%
Energy	3.7%	6.6%
Utilities	2.9%	3.0%
Healthcare	2.8%	5.3%

Return for Risk

TLTE vs. IQDY — Risk / Return Rank

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

TLTE

TLTE Risk / Return Rank: 64
TLTE Sharpe Ratio Rank: 62
TLTE Sortino Ratio Rank: 56
TLTE Omega Ratio Rank: 67
TLTE Calmar Ratio Rank: 67
TLTE Martin Ratio Rank: 68

IQDY

IQDY Risk / Return Rank: 80
IQDY Sharpe Ratio Rank: 82
IQDY Sortino Ratio Rank: 77
IQDY Omega Ratio Rank: 80
IQDY Calmar Ratio Rank: 81
IQDY Martin Ratio Rank: 82

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.

TLTE vs. IQDY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) and FlexShares International Quality Dividend Dynamic Index Fund (IQDY). 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.

	TLTE	IQDY	Difference
Sharpe ratio: Return per unit of total volatility	1.80	2.27	-0.47
Sortino ratio: Return per unit of downside risk	2.38	3.00	-0.62
Omega ratio: Gain probability vs. loss probability	1.35	1.41	-0.06
Calmar ratio: Return relative to maximum drawdown	2.89	3.72	-0.83
Martin ratio: Return relative to average drawdown	10.81	14.25	-3.44

TLTE vs. IQDY - Sharpe Ratio Comparison

The current TLTE Sharpe Ratio is 1.80, which is comparable to the IQDY Sharpe Ratio of 2.27. The chart below compares the historical Sharpe Ratios of TLTE and IQDY, 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

TLTE vs. IQDY - Drawdown Comparison

The maximum TLTE drawdown since its inception was -44.21%, which is greater than IQDY's maximum drawdown of -39.60%. Use the drawdown chart below to compare losses from any high point for TLTE and IQDY.

Drawdown Indicators

	TLTE	IQDY	Difference
Max Drawdown Largest peak-to-trough decline	-44.21%	-39.60%	-4.61%
Max Drawdown (1Y) Largest decline over 1 year	-13.04%	-10.42%	-2.62%
Max Drawdown (3Y) Largest decline over 3 years	-17.43%	-14.76%	-2.67%
Max Drawdown (5Y) Largest decline over 5 years	-32.65%	-32.30%	-0.35%
Max Drawdown (10Y) Largest decline over 10 years	-44.21%	-39.60%	-4.61%
Current Drawdown Current decline from peak	-4.32%	-2.94%	-1.38%
Average Drawdown Average peak-to-trough decline	-12.11%	-9.07%	-3.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.48%	2.71%	+0.77%

Volatility

TLTE vs. IQDY - Volatility Comparison

FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) has a higher volatility of 11.20% compared to FlexShares International Quality Dividend Dynamic Index Fund (IQDY) at 7.26%. This indicates that TLTE's price experiences larger fluctuations and is considered to be riskier than IQDY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TLTE	IQDY	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.20%	7.26%	+3.94%
Volatility (6M) Calculated over the trailing 6-month period	19.21%	14.92%	+4.29%
Volatility (1Y) Calculated over the trailing 1-year period	20.89%	17.04%	+3.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.45%	18.03%	-0.58%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.59%	18.23%	+0.36%

TLTE vs. IQDY - Expense Ratio Comparison

TLTE has a 0.59% expense ratio, which is higher than IQDY's 0.47% expense ratio.

Dividends

TLTE vs. IQDY - Dividend Comparison

TLTE's dividend yield for the trailing twelve months is around 3.23%, more than IQDY's 2.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IQDY FlexShares International Quality Dividend Dynamic Index Fund	2.97%	3.26%	6.95%	6.45%	5.52%	3.89%	2.62%	3.85%	5.97%	3.57%	3.77%	4.08%
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index	3.23%	3.76%	3.73%	4.03%	4.42%	3.21%	1.95%	3.23%	3.02%	2.12%	2.30%	2.00%

Frequently Asked Questions

Can I hold both TLTE and IQDY in my portfolio?

TLTE and IQDY have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TLTE or IQDY?

TLTE has higher volatility (11.20%) compared to IQDY (7.26%). In terms of maximum drawdown, TLTE dropped -44.21% vs IQDY's -39.60%.

Which ETF is better, TLTE or IQDY?

On 10-year performance, IQDY leads with 12.21% vs 9.71% for TLTE. On fees, IQDY is cheaper at 0.47% per year. On volatility, IQDY has been the lower-risk option at 7.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TLTE or IQDY?

Over the 10-year period, IQDY has performed better with a 12.21% return vs 9.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TLTE or IQDY?

IQDY is cheaper with a 0.47% expense ratio, compared with 0.59% for TLTE.

Which ETF pays a higher dividend yield, TLTE or IQDY?

TLTE has the higher dividend yield at 3.23%, compared with 2.97% for IQDY.

What is the main difference between TLTE and IQDY?

TLTE tracks Morningstar Emerging Markets Factor Tilt Index, while IQDY tracks Northern Trust International Quality Dividend Dynamic Index. Their fees differ too: 0.59% for TLTE and 0.47% for IQDY.

Which has better risk-adjusted returns?

IQDY currently has the higher Sharpe Ratio (2.27 vs 1.80), 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.