QDEF vs VYM
FlexShares Quality Dividend Defensive Index Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | QDEF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.04% | |
| AUM | $544M | $79.0B | |
| Dividend Yield | 1.61% | 2.86% | |
| Holdings | 136 | 568 | |
| YTD Return | +12.87% | +16.16% | |
| 1Y Return | +20.76% | +26.05% | |
| 3Y Return (annualized) | +19.25% | +18.43% | |
| 5Y Return (annualized) | +12.63% | +12.21% | |
| Volatility (annualized) | 13.4% | 14.6% | |
| Max Drawdown | -36.2% | -58.8% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 14, 2012 | Nov 10, 2006 |
QDEF vs VYM Performance
FlexShares Quality Dividend Defensive Index Fund (QDEF) is a ETF from Flexshares Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year QDEF returned +20.76% while VYM returned +26.05%. Year to date, QDEF is up 12.87% versus a gain of 16.16% for VYM.
Over three years, QDEF compounded at +19.25% per year against +18.43% for VYM; over five years the annualized figures are +12.63% and +12.21% respectively. Across the full 14-year window we track, QDEF has the edge at +10.68% annualized vs +7.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -58.8% for VYM. 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 VYM charges 0.04%. On a $10,000 position that is $39 vs $4 annually, a gap of $35 per year that compounds over a long holding period. On income, QDEF currently yields 1.61% against 2.86% for VYM.
Holdings Overlap
QDEF and VYM share 77 holdings out of 615 unique holdings combined, representing a 28.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QDEF or VYM?
QDEF has an expense ratio of 0.39% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, QDEF or VYM?
Over the past year QDEF returned +20.76% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (14 years), QDEF annualized +10.68% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, QDEF or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.4% for QDEF. Worst drawdown: QDEF -36.2% vs VYM -58.8%.
Should I hold both QDEF and VYM?
QDEF and VYM 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 VYM?
QDEF and VYM share 77 common holdings with a 28.4% weight overlap. Combined, they hold 615 unique securities.
Which pays a higher dividend, QDEF or VYM?
QDEF yields 1.61% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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