QDEF vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricQDEFVXUSWinner
Expense Ratio0.39%0.05%
AUM$544M$156.5B
Dividend Yield1.61%2.60%
Holdings1368,747
YTD Return+13.36%+14.57%
1Y Return+22.06%+27.82%
3Y Return (annualized)+19.26%+19.27%
5Y Return (annualized)+12.89%+9.28%
Volatility (annualized)13.4%15.1%
Max Drawdown-36.2%-39.9%
Fund FamilyFlexshares TrustVanguard (US)
CategoryEquityEquity
InceptionDec 14, 2012Jan 26, 2011

QDEF vs VXUS Performance

FlexShares Quality Dividend Defensive Index Fund (QDEF) is a ETF from Flexshares Trust and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year QDEF returned +22.06% while VXUS returned +27.82%. Year to date, QDEF is up 13.36% versus a gain of 14.57% for VXUS.

Over three years, QDEF compounded at +19.26% per year against +19.27% for VXUS; over five years the annualized figures are +12.89% and +9.28% respectively. Across the full 14-year window we track, QDEF has the edge at +10.72% annualized vs +4.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.9% for VXUS. 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 0.81. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

QDEF charges 0.39% per year while VXUS charges 0.05%. On a $10,000 position that is $39 vs $5 annually, a gap of $34 per year that compounds over a long holding period. On income, QDEF currently yields 1.61% against 2.60% for VXUS.

Holdings Overlap

0.3%overlap

QDEF and VXUS share 1 holdings out of 7994 unique holdings combined, representing a 0.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in QDEFWeight in VXUSDifference
AEM:CA0.53%0.28%0.25%

Frequently Asked Questions

Which is cheaper, QDEF or VXUS?

QDEF has an expense ratio of 0.39% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $34 per year of difference.

Which performed better, QDEF or VXUS?

Over the past year QDEF returned +22.06% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (14 years), QDEF annualized +10.72% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, QDEF or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 13.4% for QDEF. Worst drawdown: QDEF -36.2% vs VXUS -39.9%.

Should I hold both QDEF and VXUS?

QDEF and VXUS have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QDEF and VXUS?

QDEF and VXUS share 1 common holdings with a 0.3% weight overlap. Combined, they hold 7994 unique securities.

Which pays a higher dividend, QDEF or VXUS?

QDEF yields 1.61% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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