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QDEF - ETF AI Analysis

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QDEF

FlexShares Quality Dividend Defensive Index Fund (QDEF)

Rating:74Outperform
Price Target:
QDEF’s rating suggests it is a solid, quality-focused ETF, supported by major holdings like Alphabet, Microsoft, and Apple, which benefit from strong financial performance, positive earnings outlooks, and leadership in fast-growing areas such as cloud and AI. These strengths are balanced by weaker spots like Philip Morris and AbbVie, where high leverage, financial stability concerns, and valuation issues introduce some risk, and by exposure to richly valued tech names that could be sensitive if growth expectations are not met.
Positive Factors
Large, Established Holdings
The ETF’s biggest positions are in well-known, financially strong companies, which can add stability to the portfolio.
Broad Sector Diversification
Holdings spread across many sectors, with meaningful exposure to technology, financials, health care, and consumer stocks, help reduce the impact of weakness in any single industry.
Defensive Dividend Focus
The fund targets quality dividend-paying companies, which can provide a steadier income stream and potentially smoother returns during market volatility.
Negative Factors
Heavy Technology Concentration
A large share of the portfolio is in technology stocks, which increases the fund’s sensitivity to swings in that sector.
Mixed Performance Among Top Holdings
Some of the largest positions have shown weak or negative recent performance, which can drag on overall returns even when other holdings are doing well.
U.S.-Only Market Exposure
The ETF invests solely in U.S. companies, offering no diversification benefits from international markets.

QDEF vs. SPDR S&P 500 ETF (SPY)

QDEF Summary

QDEF is the FlexShares Quality Dividend Defensive Index Fund, which follows the Northern Trust Quality Dividend Defensive Index. It invests in U.S. companies that pay steady dividends and are considered financially strong, aiming to provide both income and some growth. The fund holds many well-known names such as Apple, Microsoft, Nvidia, Johnson & Johnson, and Procter & Gamble, and spreads investments across several sectors for diversification. Someone might invest in QDEF to seek regular dividend income while trying to reduce big swings in their portfolio. However, it can still go up and down with the stock market and is heavily tilted toward large tech stocks.
How much will it cost me?The expense ratio for QDEF is 0.37%, which means you’ll pay $3.70 per year for every $1,000 invested. This is slightly higher than average because the fund is passively managed but focuses on a specific niche of high-quality, dividend-paying stocks with defensive characteristics.
What would affect this ETF?QDEF's focus on high-quality dividend-paying stocks in defensive sectors like Health Care and Consumer Defensive could benefit from economic uncertainty, as investors often seek stability and income during volatile times. However, its significant exposure to Technology, including top holdings like Apple and Nvidia, makes it sensitive to interest rate hikes and regulatory changes, which could negatively impact growth-oriented companies. Additionally, its U.S.-centric portfolio may face risks from domestic economic slowdowns or benefit from favorable U.S. market conditions.

QDEF Top 10 Holdings

QDEF leans heavily on U.S. tech, with Apple and Nvidia doing most of the heavy lifting as their shares keep climbing on the back of AI and services growth. Broadcom has been a bit choppy lately but still adds juice over the longer stretch. Microsoft, by contrast, has lost some steam recently and isn’t pulling its weight the same way. Outside tech, steady players like Johnson & Johnson and Philip Morris help smooth the ride, giving this defensively minded, U.S.-focused fund a tech-powered but income-friendly profile.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Apple8.03%$43.28M$4.34T48.20%
79
Outperform
Nvidia6.70%$36.12M$4.96T44.53%
76
Outperform
Broadcom4.70%$25.31M$1.83T53.63%
76
Outperform
Microsoft3.48%$18.78M$2.90T-17.73%
79
Outperform
AbbVie2.82%$15.20M$397.12B19.18%
66
Neutral
Johnson & Johnson2.66%$14.33M$573.71B53.32%
78
Outperform
Alphabet Class A2.53%$13.61M$4.33T105.92%
85
Outperform
Procter & Gamble2.49%$13.41M$345.42B-6.66%
69
Neutral
Cisco Systems2.43%$13.09M$480.19B88.95%
77
Outperform
KLA2.41%$13.01M$31.50B193.36%
77
Outperform

QDEF Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
85.35
Positive
100DMA
83.63
Positive
200DMA
81.61
Positive
Market Momentum
MACD
0.37
Positive
RSI
56.58
Neutral
STOCH
35.71
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For QDEF, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 87.21, equal to the 50-day MA of 85.35, and equal to the 200-day MA of 81.61, indicating a bullish trend. The MACD of 0.37 indicates Positive momentum. The RSI at 56.58 is Neutral, neither overbought nor oversold. The STOCH value of 35.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QDEF.

QDEF Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$540.05M0.39%
74
Outperform
$938.17M0.59%
68
Neutral
$893.81M0.50%
76
Outperform
$879.83M0.15%
73
Outperform
$878.21M1.30%
65
Neutral
$854.32M0.27%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
QDEF
FlexShares Quality Dividend Defensive Index Fund
87.36
15.78
22.05%
SYLD
Cambria Shareholder Yield ETF
HLAL
Wahed FTSE USA Shariah ETF
FDMO
Fidelity Momentum Factor ETF
ULTY
YieldMax Ultra Option Income Strategy ETF
AUSF
Global X Adaptive U.S. Factor ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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