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Is FlexShares US Quality Large Cap ETF (QLC) a Strong ETF Right Now?
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The FlexShares US Quality Large Cap ETF (QLC - Free Report) made its debut on 09/23/2015, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Blend 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.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
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.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
QLC is managed by Flexshares, and this fund has amassed over $707.7 million, which makes it one of the average sized ETFs in the Style Box - Large Cap Blend. This particular fund, before fees and expenses, seeks to match the performance of the Northern Trust Quality Large Cap Index.
The Northern Trust Quality Large Cap Index is designed to measure the performance of a universe of large capitalization securities which demonstrate characteristics of better quality, attractive valuation and positive momentum.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.25% for this ETF, which makes it on par with most peer products in the space.
QLC's 12-month trailing dividend yield is 0.91%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 35.1% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Financials and Telecom round out the top three.
Looking at individual holdings, Nvidia Corp Common Stock Usd 0.001 (NVDA) accounts for about 7.64% of total assets, followed by Apple Inc Common Stock Usd 0.00001 (AAPL) and Microsoft Corp Common Stock Usd 0.00000625 (MSFT).
The top 10 holdings account for about 38.53% of total assets under management.
Performance and Risk
The ETF has added roughly 22.84% so far this year and is up about 18.92% in the last one year (as of 12/05/2025). In the past 52-week period, it has traded between $56.84 and $81.07
The fund has a beta of 1.00 and standard deviation of 15.09% for the trailing three-year period, which makes QLC a medium risk choice in this particular space. With about 169 holdings, it effectively diversifies company-specific risk .
Alternatives
FlexShares US Quality Large Cap ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. There are other ETFs in the space which investors could consider as well.
iShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the Vanguard S&P 500 ETF (VOO) tracks S&P 500 Index. iShares Core S&P 500 ETF has $732.24 billion in assets, Vanguard S&P 500 ETF has $823.13 billion. IVV has an expense ratio of 0.03% and VOO changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend
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 US Quality Large Cap ETF (QLC) a Strong ETF Right Now?
The FlexShares US Quality Large Cap ETF (QLC - Free Report) made its debut on 09/23/2015, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Blend 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.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
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.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
QLC is managed by Flexshares, and this fund has amassed over $707.7 million, which makes it one of the average sized ETFs in the Style Box - Large Cap Blend. This particular fund, before fees and expenses, seeks to match the performance of the Northern Trust Quality Large Cap Index.
The Northern Trust Quality Large Cap Index is designed to measure the performance of a universe of large capitalization securities which demonstrate characteristics of better quality, attractive valuation and positive momentum.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.25% for this ETF, which makes it on par with most peer products in the space.
QLC's 12-month trailing dividend yield is 0.91%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 35.1% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Financials and Telecom round out the top three.
Looking at individual holdings, Nvidia Corp Common Stock Usd 0.001 (NVDA) accounts for about 7.64% of total assets, followed by Apple Inc Common Stock Usd 0.00001 (AAPL) and Microsoft Corp Common Stock Usd 0.00000625 (MSFT).
The top 10 holdings account for about 38.53% of total assets under management.
Performance and Risk
The ETF has added roughly 22.84% so far this year and is up about 18.92% in the last one year (as of 12/05/2025). In the past 52-week period, it has traded between $56.84 and $81.07
The fund has a beta of 1.00 and standard deviation of 15.09% for the trailing three-year period, which makes QLC a medium risk choice in this particular space. With about 169 holdings, it effectively diversifies company-specific risk .
Alternatives
FlexShares US Quality Large Cap ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. There are other ETFs in the space which investors could consider as well.
iShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the Vanguard S&P 500 ETF (VOO) tracks S&P 500 Index. iShares Core S&P 500 ETF has $732.24 billion in assets, Vanguard S&P 500 ETF has $823.13 billion. IVV has an expense ratio of 0.03% and VOO changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend
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.