IQDF vs SPY

Quick Verdict

SPY has a lower expense ratio. IQDF delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: IQDFMore Diversified: SPY

Side-by-Side Comparison

MetricIQDFSPYWinner
Expense Ratio0.47%0.09%
AUM$1.1B$789.1B
Dividend Yield3.04%1.01%
Holdings264505
YTD Return+17.25%+13.68%
1Y Return+30.27%+21.53%
3Y Return (annualized)+23.78%+21.44%
5Y Return (annualized)+11.58%+13.18%
Volatility (annualized)15.0%15.3%
Max Drawdown-47.3%-56.5%
Fund FamilyFlexshares TrustState Street Investment Management
CategoryEquityEquity
InceptionApr 12, 2013Jan 22, 1993

IQDF vs SPY Performance

FlexShares International Quality Dividend Index Fund (IQDF) is a ETF from Flexshares Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year IQDF returned +30.27% while SPY returned +21.53%. Year to date, IQDF is up 17.25% versus a gain of 13.68% for SPY.

Over three years, IQDF compounded at +23.78% per year against +21.44% for SPY; over five years the annualized figures are +11.58% and +13.18% respectively. Across the full 13-year window we track, SPY has the edge at +8.85% annualized vs +4.88%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 15.0% for IQDF. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -47.3% for IQDF and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.79. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IQDF charges 0.47% per year while SPY charges 0.09%. On a $10,000 position that is $47 vs $9 annually, a gap of $38 per year that compounds over a long holding period. On income, IQDF currently yields 3.04% against 1.01% for SPY.

Holdings Overlap

0.1%overlap

IQDF and SPY share 1 holdings out of 691 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IQDFWeight in SPYDifference
ROP1.73%0.06%1.67%

Frequently Asked Questions

Which is cheaper, IQDF or SPY?

IQDF has an expense ratio of 0.47% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $38 per year of difference.

Which performed better, IQDF or SPY?

Over the past year IQDF returned +30.27% vs +21.53% for SPY, so IQDF leads on 1-year performance. Over the longest common window we track (13 years), IQDF annualized +4.88% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, IQDF or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 15.0% for IQDF. Worst drawdown: IQDF -47.3% vs SPY -56.5%.

Should I hold both IQDF and SPY?

IQDF and SPY have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IQDF and SPY?

IQDF and SPY share 1 common holdings with a 0.1% weight overlap. Combined, they hold 691 unique securities.

Which pays a higher dividend, IQDF or SPY?

IQDF yields 3.04% while SPY yields 1.01%, so IQDF currently pays the higher dividend yield.

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