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Is FlexShares International Quality Dividend ETF (IQDF) a Strong ETF Right Now?
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A smart beta exchange traded fund, the FlexShares International Quality Dividend ETF (IQDF - Free Report) debuted on 04/12/2013, and offers broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $710.60 million, this makes it one of the larger ETFs in the World ETFs. IQDF is managed by Flexshares. This particular fund, before fees and expenses, seeks to match the performance of the Northern Trust International Quality Dividend Index.
The Northern Trust International Quality Dividend Index is designed to provide exposure to a high-quality income-oriented portfolio of long-only international securities issued by non-U.S.-based companies, with an emphasis on long-term capital growth and a targeted overall beta that is similar to that of the Northern Trust International Large Cap Index.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
With one of the cheaper products in the space, this ETF has annual operating expenses of 0.47%.
It's 12-month trailing dividend yield comes in at 6.17%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Hsbc Holdings Plc Common Stock Gbp 0.5 (HSBA) accounts for about 3.04% of total assets, followed by Novartis Ag Common Stock Chf 0.49 and Taiwan Semiconductor Manufacturing Co Ltd Common.
Its top 10 holdings account for approximately 19.07% of IQDF's total assets under management.
Performance and Risk
So far this year, IQDF return is roughly 15.60%, and was up about 10.96% in the last one year (as of 05/21/2025). During this past 52-week period, the fund has traded between $22.10 and $26.81.
IQDF has a beta of 0.74 and standard deviation of 15.68% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 253 holdings, it effectively diversifies company-specific risk.
Alternatives
FlexShares International Quality Dividend ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
FlexShares International Quality Dividend Dynamic ETF (IQDY - Free Report) tracks Northern Trust International Quality Dividend Dynamic Index. The fund has $69.46 million in assets. IQDY has an expense ratio of 0.47%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is FlexShares International Quality Dividend ETF (IQDF) a Strong ETF Right Now?
A smart beta exchange traded fund, the FlexShares International Quality Dividend ETF (IQDF - Free Report) debuted on 04/12/2013, and offers broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $710.60 million, this makes it one of the larger ETFs in the World ETFs. IQDF is managed by Flexshares. This particular fund, before fees and expenses, seeks to match the performance of the Northern Trust International Quality Dividend Index.
The Northern Trust International Quality Dividend Index is designed to provide exposure to a high-quality income-oriented portfolio of long-only international securities issued by non-U.S.-based companies, with an emphasis on long-term capital growth and a targeted overall beta that is similar to that of the Northern Trust International Large Cap Index.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
With one of the cheaper products in the space, this ETF has annual operating expenses of 0.47%.
It's 12-month trailing dividend yield comes in at 6.17%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Hsbc Holdings Plc Common Stock Gbp 0.5 (HSBA) accounts for about 3.04% of total assets, followed by Novartis Ag Common Stock Chf 0.49 and Taiwan Semiconductor Manufacturing Co Ltd Common.
Its top 10 holdings account for approximately 19.07% of IQDF's total assets under management.
Performance and Risk
So far this year, IQDF return is roughly 15.60%, and was up about 10.96% in the last one year (as of 05/21/2025). During this past 52-week period, the fund has traded between $22.10 and $26.81.
IQDF has a beta of 0.74 and standard deviation of 15.68% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 253 holdings, it effectively diversifies company-specific risk.
Alternatives
FlexShares International Quality Dividend ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
FlexShares International Quality Dividend Dynamic ETF (IQDY - Free Report) tracks Northern Trust International Quality Dividend Dynamic Index. The fund has $69.46 million in assets. IQDY has an expense ratio of 0.47%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.