FlexShares US Quality Low Volatility Index Fund

QLV

Market cap $149M

The FlexShares US Quality Low Volatility ETF integrates quality screens with low volatility, aiming to mitigate risks that pure low-volatility ETFs may miss. QLV selects stocks based on management efficiency, profitability, and cash flows, reducing exposure to unprofitable names that can slip into price-based strategies. QLV carries notable concentration risk, with over 17% in its top three positions—Microsoft, Nvidia, and Apple — and 28% in the IT sector.

FlexShares US Quality Low Volatility Index Fund ETF aims to maximize quality and minimize volatility in a portfolio of about 120 stocks. Volatility reduction is effective at the expense of return: QLV has underperformed a benchmark by almost 3% in annualized return. QLV beats most of its largest competitors in the low-volatility category, but it lags a number of quality-focused ETFs.