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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?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Flexshares. IQDF has been able to amass assets over $899.69 million, making it one of the larger ETFs in the World ETFs. Before fees and expenses, IQDF 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
With one of the cheaper products in the space, this ETF has annual operating expenses of 0.47%.
The fund has a 12-month trailing dividend yield of 5.91%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Looking at individual holdings, Taiwan Semiconductor Manufacturing Co Ltd Common accounts for about 3.11% of total assets, followed by Bhp Group Ltd Common Stock Aud 0 (BHP) and Novartis Ag Common Stock Chf 0.49 (NOVN).
Its top 10 holdings account for approximately 18.45% of IQDF's total assets under management.
Performance and Risk
The ETF return is roughly 32.15% and it's up approximately 27.46% so far this year and in the past one year (as of 12/05/2025), respectively. IQDF has traded between $22.10 and $29.93 during this last 52-week period.
The fund has a beta of 0.70 and standard deviation of 13.65% for the trailing three-year period, which makes IQDF a medium risk choice in this particular space. With about 283 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) tracks Northern Trust International Quality Dividend Dynamic Index The fund has $86.76 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?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Flexshares. IQDF has been able to amass assets over $899.69 million, making it one of the larger ETFs in the World ETFs. Before fees and expenses, IQDF 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
With one of the cheaper products in the space, this ETF has annual operating expenses of 0.47%.
The fund has a 12-month trailing dividend yield of 5.91%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Looking at individual holdings, Taiwan Semiconductor Manufacturing Co Ltd Common accounts for about 3.11% of total assets, followed by Bhp Group Ltd Common Stock Aud 0 (BHP) and Novartis Ag Common Stock Chf 0.49 (NOVN).
Its top 10 holdings account for approximately 18.45% of IQDF's total assets under management.
Performance and Risk
The ETF return is roughly 32.15% and it's up approximately 27.46% so far this year and in the past one year (as of 12/05/2025), respectively. IQDF has traded between $22.10 and $29.93 during this last 52-week period.
The fund has a beta of 0.70 and standard deviation of 13.65% for the trailing three-year period, which makes IQDF a medium risk choice in this particular space. With about 283 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) tracks Northern Trust International Quality Dividend Dynamic Index The fund has $86.76 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.