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Is FlexShares International Quality Dividend ETF (IQDF) a Strong ETF Right Now?

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The FlexShares International Quality Dividend ETF (IQDF - Free Report) was launched on 04/12/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the World ETFs category of the market.

What Are Smart Beta ETFs?

Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.

Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.

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.

Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.

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

The fund is managed by Flexshares. IQDF has been able to amass assets over $1.11 billion, making it one of the larger ETFs in the World ETFs. Before fees and expenses, this particular fund 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.

Annual operating expenses for this ETF are 0.47%, making it one of the cheaper products in the space.

It's 12-month trailing dividend yield comes in at 2.87%.

Sector Exposure and Top Holdings

ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

Taking into account individual holdings, Taiwan Semiconductor Manufacturing Co Ltd Commonaccounts for about 3.65% of the fund's total assets, followed by Roche Holding Ag Common Stock Chf 0.001 (ROP) and Tokyo Electron Ltd Common Stock Jpy.

IQDF's top 10 holdings account for about 16.23% of its total assets under management.

Performance and Risk

Year-to-date, the FlexShares International Quality Dividend ETF has added about 11.41% so far, and is up about 29.79% over the last 12 months (as of 06/08/2026). IQDF has traded between $26.15 $35.36 in this past 52-week period.

IQDF has a beta of 0.69 and standard deviation of 14.53% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 251 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 $104.31 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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