QDF vs VYM
FlexShares Quality Dividend 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 | QDF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.04% | |
| AUM | $2.2B | $79.0B | |
| Dividend Yield | 1.50% | 2.86% | |
| Holdings | 126 | 568 | |
| YTD Return | +14.93% | +16.10% | |
| 1Y Return | +24.44% | +25.99% | |
| 3Y Return (annualized) | +18.75% | +18.29% | |
| 5Y Return (annualized) | +12.22% | +12.35% | |
| Volatility (annualized) | 14.4% | 14.6% | |
| Max Drawdown | -37.2% | -58.8% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 14, 2012 | Nov 10, 2006 |
QDF vs VYM Performance
FlexShares Quality Dividend Index Fund (QDF) is a ETF from Flexshares Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year QDF returned +24.44% while VYM returned +25.99%. Year to date, QDF is up 14.93% versus a gain of 16.10% for VYM.
Over three years, QDF compounded at +18.75% per year against +18.29% for VYM; over five years the annualized figures are +12.22% and +12.35% respectively. Across the full 14-year window we track, QDF has the edge at +10.82% annualized vs +7.08%. 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 14.4% for QDF. 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 -37.2% for QDF 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
QDF 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, QDF currently yields 1.50% against 2.86% for VYM.
Holdings Overlap
QDF and VYM share 77 holdings out of 603 unique holdings combined, representing a 26.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QDF or VYM?
QDF 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, QDF or VYM?
Over the past year QDF returned +24.44% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (14 years), QDF annualized +10.82% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, QDF or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.4% for QDF. Worst drawdown: QDF -37.2% vs VYM -58.8%.
Should I hold both QDF and VYM?
QDF 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 QDF and VYM?
QDF and VYM share 77 common holdings with a 26.3% weight overlap. Combined, they hold 603 unique securities.
Which pays a higher dividend, QDF or VYM?
QDF yields 1.50% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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