IQDY vs VTI
FlexShares International Quality Dividend Dynamic Index Fund vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. IQDY delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | IQDY | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.03% | |
| AUM | $114M | $666.9B | |
| Dividend Yield | 2.96% | 1.07% | |
| Holdings | 252 | 3,543 | |
| YTD Return | +19.89% | +13.14% | |
| 1Y Return | +35.59% | +22.35% | |
| 3Y Return (annualized) | +26.41% | +21.83% | |
| 5Y Return (annualized) | +13.35% | +12.01% | |
| Volatility (annualized) | 17.2% | 15.3% | |
| Max Drawdown | -45.3% | -56.6% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 12, 2013 | May 24, 2001 |
IQDY vs VTI Performance
FlexShares International Quality Dividend Dynamic Index Fund (IQDY) is a ETF from Flexshares Trust and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IQDY returned +35.59% while VTI returned +22.35%. Year to date, IQDY is up 19.89% versus a gain of 13.14% for VTI.
Over three years, IQDY compounded at +26.41% per year against +21.83% for VTI; over five years the annualized figures are +13.35% and +12.01% respectively. Across the full 13-year window we track, VTI has the edge at +8.09% annualized vs +6.59%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IQDY has been the more volatile fund, with annualized monthly volatility of 17.2% compared with 15.3% for VTI. 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 -45.3% for IQDY and -56.6% for VTI. 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IQDY charges 0.47% per year while VTI charges 0.03%. On a $10,000 position that is $47 vs $3 annually, a gap of $44 per year that compounds over a long holding period. On income, IQDY currently yields 2.96% against 1.07% for VTI.
Holdings Overlap
IQDY and VTI share 3 holdings out of 2983 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IQDY or VTI?
IQDY has an expense ratio of 0.47% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, IQDY or VTI?
Over the past year IQDY returned +35.59% vs +22.35% for VTI, so IQDY leads on 1-year performance. Over the longest common window we track (13 years), IQDY annualized +6.59% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, IQDY or VTI?
IQDY has been the more volatile fund at 17.2% annualized versus 15.3% for VTI. Worst drawdown: IQDY -45.3% vs VTI -56.6%.
Should I hold both IQDY and VTI?
IQDY and VTI have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IQDY and VTI?
IQDY and VTI share 3 common holdings with a 0.1% weight overlap. Combined, they hold 2983 unique securities.
Which pays a higher dividend, IQDY or VTI?
IQDY yields 2.96% while VTI yields 1.07%, so IQDY currently pays the higher dividend yield.
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