QDEF vs VOO
FlexShares Quality Dividend Defensive Index Fund vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | QDEF | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.03% | |
| AUM | $544M | $979.0B | |
| Dividend Yield | 1.61% | 1.09% | |
| Holdings | 136 | 509 | |
| YTD Return | +12.87% | +13.44% | |
| 1Y Return | +20.76% | +22.62% | |
| 3Y Return (annualized) | +19.25% | +21.47% | |
| 5Y Return (annualized) | +12.63% | +13.27% | |
| Volatility (annualized) | 13.4% | 14.1% | |
| Max Drawdown | -36.2% | -34.3% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 14, 2012 | Sep 7, 2010 |
QDEF vs VOO Performance
FlexShares Quality Dividend Defensive Index Fund (QDEF) is a ETF from Flexshares Trust and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year QDEF returned +20.76% while VOO returned +22.62%. Year to date, QDEF is up 12.87% versus a gain of 13.44% for VOO.
Over three years, QDEF compounded at +19.25% per year against +21.47% for VOO; over five years the annualized figures are +12.63% and +13.27% respectively. Across the full 14-year window we track, VOO has the edge at +13.55% annualized vs +10.68%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 13.4% for QDEF. 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 -36.2% for QDEF and -34.3% for VOO. 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QDEF charges 0.39% per year while VOO charges 0.03%. On a $10,000 position that is $39 vs $3 annually, a gap of $36 per year that compounds over a long holding period. On income, QDEF currently yields 1.61% against 1.09% for VOO.
Holdings Overlap
QDEF and VOO share 96 holdings out of 543 unique holdings combined, representing a 38.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QDEF or VOO?
QDEF has an expense ratio of 0.39% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, QDEF or VOO?
Over the past year QDEF returned +20.76% vs +22.62% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (14 years), QDEF annualized +10.68% vs +13.55% for VOO. Past performance does not guarantee future results.
Which is riskier, QDEF or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 13.4% for QDEF. Worst drawdown: QDEF -36.2% vs VOO -34.3%.
Should I hold both QDEF and VOO?
QDEF and VOO have a monthly-return correlation of 0.95, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between QDEF and VOO?
QDEF and VOO share 96 common holdings with a 38.7% weight overlap. Combined, they hold 543 unique securities.
Which pays a higher dividend, QDEF or VOO?
QDEF yields 1.61% while VOO yields 1.09%, so QDEF currently pays the higher dividend yield.
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