QDEF vs VTI
FlexShares Quality Dividend Defensive Index Fund vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | QDEF | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.03% | |
| AUM | $564M | $666.9B | |
| Dividend Yield | 1.58% | 1.07% | |
| Holdings | 137 | 3,543 | |
| YTD Return | +13.28% | +14.82% | |
| 1Y Return | +19.22% | +22.43% | |
| 3Y Return (annualized) | +19.68% | +21.93% | |
| 5Y Return (annualized) | +12.54% | +12.34% | |
| Volatility (annualized) | 13.4% | 15.4% | |
| Max Drawdown | -36.2% | -56.6% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 14, 2012 | May 24, 2001 |
QDEF vs VTI Performance
FlexShares Quality Dividend Defensive Index Fund (QDEF) is a ETF from Flexshares Trust and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year QDEF returned +19.22% while VTI returned +22.43%. Year to date, QDEF is up 13.28% versus a gain of 14.82% for VTI.
Over three years, QDEF compounded at +19.68% per year against +21.93% for VTI; over five years the annualized figures are +12.54% and +12.34% respectively. Across the full 14-year window we track, QDEF has the edge at +10.70% annualized vs +8.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% 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 -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 0.95. 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 VTI 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 1.58% against 1.07% for VTI.
Holdings Overlap
QDEF and VTI share 116 holdings out of 2805 unique holdings combined, representing a 36.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QDEF or VTI?
QDEF has an expense ratio of 0.39% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, QDEF or VTI?
Over the past year QDEF returned +19.22% vs +22.43% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (14 years), QDEF annualized +10.70% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, QDEF or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 13.4% for QDEF. Worst drawdown: QDEF -36.2% vs VTI -56.6%.
Should I hold both QDEF and VTI?
QDEF and VTI 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 VTI?
QDEF and VTI share 116 common holdings with a 36.3% weight overlap. Combined, they hold 2805 unique securities.
Which pays a higher dividend, QDEF or VTI?
QDEF yields 1.58% while VTI yields 1.07%, so QDEF currently pays the higher dividend yield.
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