TLTE vs. QLC

Last updated Jun 5, 2026

TLTE (FlexShares Morningstar Emerging Markets Factor Tilt Index) and QLC (FlexShares US Quality Large Cap Index Fund) are both exchange-traded funds - TLTE is a Foreign Large Cap Equities fund tracking the Morningstar Emerging Markets Factor Tilt Index, while QLC is a Large Cap Blend Equities fund tracking the Northern Trust Quality Large Cap Index. Both are passively managed. Over the past 10 years, TLTE returned 9.47%/yr vs 14.84%/yr for QLC. A 0.60 correlation means they provide meaningful diversification when combined. TLTE charges 0.59%/yr vs 0.25%/yr for QLC.

Performance

TLTE vs. QLC - 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 US Quality Large Cap Index Fund (QLC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TLTE achieves a 23.54% return, which is significantly higher than QLC's 12.12% return. Over the past 10 years, TLTE has underperformed QLC with an annualized return of 9.47%, while QLC has yielded a comparatively higher 14.84% annualized return.

TLTE

• 1D: -0.69%
• 1M: 3.64%
• YTD: 23.54%
• 6M: 25.97%
• 1Y: 45.35%
• 3Y*: 22.09%
• 5Y*: 7.43%
• 10Y*: 9.47%

QLC

• 1D: 0.66%
• 1M: 5.15%
• YTD: 12.12%
• 6M: 12.40%
• 1Y: 33.91%
• 3Y*: 25.73%
• 5Y*: 15.44%
• 10Y*: 14.84%

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

TLTE vs. QLC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index	23.54%	30.21%	3.53%	13.62%	-17.31%	4.79%	12.10%	14.51%	-17.44%	32.82%
QLC FlexShares US Quality Large Cap Index Fund	12.12%	23.26%	26.71%	26.02%	-17.21%	28.46%	13.64%	24.51%	-8.12%	21.73%

Correlation

The correlation between TLTE and QLC is 0.73, 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	0.73
Correlation (3Y) Calculated over the trailing 3-year period	0.64
Correlation (5Y) Calculated over the trailing 5-year period	0.65
Correlation (10Y) Calculated over the trailing 10-year period	0.62
Correlation (All Time) Calculated using the full available price history since Sep 25, 2015	0.60

The correlation between TLTE and QLC shifts across timeframes, from 0.60 (all time) to 0.73 (1 year), reflecting how their relationship changes across market environments.

TLTE vs. QLC - Sectors Allocation Comparison

Sectors	TLTE	QLC
Technology	27.3%	34.8%
Financial Services	18.9%	13.8%
Industrials	11.7%	6.6%
Consumer Cyclical	10.5%	7.9%
Basic Materials	7.7%	2.2%
Communication Services	4.6%	13.8%
Energy	4.4%	2.0%
Real Estate	4.3%	2.3%
Consumer Defensive	4.2%	3.2%
Utilities	3.1%	3.4%
Healthcare	3.1%	10.1%

Return for Risk

TLTE vs. QLC — Risk / Return Rank

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

TLTE

TLTE Risk / Return Rank: 75
TLTE Sharpe Ratio Rank: 78
TLTE Sortino Ratio Rank: 73
TLTE Omega Ratio Rank: 77
TLTE Calmar Ratio Rank: 71
TLTE Martin Ratio Rank: 74

QLC

QLC Risk / Return Rank: 83
QLC Sharpe Ratio Rank: 85
QLC Sortino Ratio Rank: 85
QLC Omega Ratio Rank: 82
QLC Calmar Ratio Rank: 77
QLC Martin Ratio Rank: 86

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. QLC - 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 US Quality Large Cap Index Fund (QLC). 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.

	TLTE	QLC	Difference
Sharpe ratio: Return per unit of total volatility	2.48	2.75	-0.27
Sortino ratio: Return per unit of downside risk	3.27	3.79	-0.51
Omega ratio: Gain probability vs. loss probability	1.45	1.49	-0.04
Calmar ratio: Return relative to maximum drawdown	3.50	3.85	-0.36
Martin ratio: Return relative to average drawdown	13.71	18.03	-4.31
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TLTE vs. QLC - Sharpe Ratio Comparison

The current TLTE Sharpe Ratio is 2.48, which is comparable to the QLC Sharpe Ratio of 2.75. The chart below compares the historical Sharpe Ratios of TLTE and QLC, 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

	TLTE	QLC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.48	2.75	-0.27
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.44	0.92	-0.48
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.52	0.81	-0.29
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.80	-0.46

Drawdowns

TLTE vs. QLC - Drawdown Comparison

The maximum TLTE drawdown since its inception was -44.21%, which is greater than QLC's maximum drawdown of -35.86%. Use the drawdown chart below to compare losses from any high point for TLTE and QLC.

Drawdown Indicators

	TLTE	QLC	Difference
Max Drawdown Largest peak-to-trough decline	-44.21%	-35.86%	-8.35%
Max Drawdown (1Y) Largest decline over 1 year	-13.04%	-8.84%	-4.20%
Max Drawdown (3Y) Largest decline over 3 years	-17.43%	-18.49%	+1.06%
Max Drawdown (5Y) Largest decline over 5 years	-33.51%	-23.81%	-9.70%
Max Drawdown (10Y) Largest decline over 10 years	-44.21%	-35.86%	-8.35%
Current Drawdown Current decline from peak	-1.98%	-0.09%	-1.89%
Average Drawdown Average peak-to-trough decline	-12.15%	-4.54%	-7.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.32%	1.89%	+1.43%

Volatility

TLTE vs. QLC - Volatility Comparison

FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) has a higher volatility of 7.87% compared to FlexShares US Quality Large Cap Index Fund (QLC) at 2.89%. This indicates that TLTE's price experiences larger fluctuations and is considered to be riskier than QLC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TLTE	QLC	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.87%	2.89%	+4.98%
Volatility (6M) Calculated over the trailing 6-month period	16.12%	9.52%	+6.60%
Volatility (1Y) Calculated over the trailing 1-year period	18.43%	12.38%	+6.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.83%	16.82%	+0.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.40%	18.42%	-0.02%

TLTE vs. QLC - Expense Ratio Comparison

TLTE has a 0.59% expense ratio, which is higher than QLC's 0.25% expense ratio.

Dividends

TLTE vs. QLC - Dividend Comparison

TLTE's dividend yield for the trailing twelve months is around 3.04%, more than QLC's 0.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QLC FlexShares US Quality Large Cap Index Fund	0.87%	0.94%	1.03%	1.26%	1.46%	0.96%	1.40%	1.91%	1.82%	1.29%	1.80%	0.64%
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index	3.04%	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 QLC in my portfolio?

TLTE and QLC have a correlation of 0.73, 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 QLC?

TLTE has higher volatility (7.87%) compared to QLC (2.89%). In terms of maximum drawdown, TLTE dropped -44.21% vs QLC's -35.86%.

Which ETF is better, TLTE or QLC?

On 10-year performance, QLC leads with 14.84% vs 9.47% for TLTE. On fees, QLC is cheaper at 0.25% per year. On volatility, QLC has been the lower-risk option at 2.89%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TLTE or QLC?

Over the 10-year period, QLC has performed better with a 14.84% return vs 9.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TLTE or QLC?

QLC is cheaper with a 0.25% expense ratio, compared with 0.59% for TLTE.

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

TLTE has the higher dividend yield at 3.04%, compared with 0.87% for QLC.

What is the main difference between TLTE and QLC?

TLTE is categorized as Foreign Large Cap Equities, while QLC is Large Cap Blend Equities. TLTE tracks Morningstar Emerging Markets Factor Tilt Index, while QLC tracks Northern Trust Quality Large Cap Index. Their fees differ too: 0.59% for TLTE and 0.25% for QLC.

Which has better risk-adjusted returns?

QLC currently has the higher Sharpe Ratio (2.75 vs 2.48), 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.