FlexShares Quality Dividend Index Fund

QDF

Market cap $2.06B

Dividend ETFs are a great way to create long-term passive income streams from your portfolio. Investors can target dividend growth, dividend quality, or high-yield strategies to generate income.

FlexShares Quality Dividend Index Fund ETF offers exposure to dividend stocks screened for quality, with an emphasis put on management efficiency, profitability, and cash flow. QDF has a robust factor mix with a value tilt (i.e., the weighted average adjusted EY of 4.3%) and healthy quality characteristics, but no clear edge over IVV. QDF's performance (including risk metrics) has not been particularly impressive. Over January 2013-November 2025, it underperformed IWB and IVV by 2.15% and 2.47% in annualized return, respectively.

Launched on 12/14/2012, the FlexShares Quality Dividend ETF (QDF) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market.

Making its debut on 12/14/2012, smart beta exchange traded fund FlexShares Quality Dividend ETF (QDF) provides investors broad exposure to the Style Box - All Cap Blend category of the market.

QDF offers a unique blend of quality and dividend focus, with heavy tech exposure driving recent outperformance versus peers but lagging the broader market. The fund's attractive valuation, high profitability, and strong stock selection position it as a balanced option for growth and income amid upcoming rate cuts. QDF's dividend yield is higher than the broad market but lower than most dividend ETF peers, making it less ideal for pure income seekers.

The FlexShares Quality Dividend ETF (QDF) made its debut on 12/14/2012, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Blend category of the market.

Investors turn to high-quality ETFs like QUAL, SPHQ and JQUA to navigate volatility and preserve value amid rising geopolitical risks.

QDF uses a proprietary screening process to select high-quality dividend paying stocks that, as a whole, match a specific set of portfolio constraints. I estimate its dividend yield at 1.95%. Compared to similar dividend-themed ETFs like DGRW, VIG, DGRO, and CGDV, QDF's sector diversification is poor, and nearly 30% of the portfolio is allocated to tech stocks. However, the benefit is a fund that ranks well on quality, growth, and value. Even with the high tech sector exposure, QDF trades at an attractive 18.39x forward earnings.

Designed to provide broad exposure to the Style Box - All Cap Blend category of the market, the FlexShares Quality Dividend ETF (QDF) is a smart beta exchange traded fund launched on 12/14/2012.

Investors should focus on high-quality investing amid heightened market volatility and uncertainty.