FlexShares Quality Dividend Defensive
ALTAR
Score™
6.2% info Recommen-
dation
NEUTRAL
2020E    2021E
P/E
ratio
16.0x P/Sales
ratio
1.8x
P/BV
ratio
3.0x Div.
yield
3.2%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
FlexShares Quality Dividend Defensive Index Fund is an exchange-traded fund incorporated in the USA. The Fund seeks to track the performance of the Northern Trust Quality Dividend Defensive Index.

FUND BASICS
Category US Equities
Fund Sponsor Northern Trust Investments Inc
Website www.flexshares.com
Inception date Dec 14, 2012
Assets (mns) $508
Currency USD
Expense ratio 37 bp
Distributions Quarterly

FUND STRUCTURE
Regulation Open-Ended Fund
Custodian State Street Bank and Trust Co
Weighting Multi-Factor
Index replication Optimized
Uses derivatives No
Options available No

SECTOR BREAKDOWN

 


CONSTITUENT BREAKDOWN
No. of constituents 162
Wgt avg mkt cap (mns) $222,672
Large cap (>$10bn) 81.9%
Mid cap ($2-10bn) 18.1%
Small cap (<$2bn) 0.0%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
MICROSOFT CORP 4.0 %
JOHNSON & JOHNSON 3.7 %
APPLE INC 3.6 %
UNITEDHEALTH GROUP INC 3.1 %
CHEVRON CORP 2.9 %
WELLS FARGO & CO 2.9 %
CISCO SYSTEMS INC 2.2 %
PHILIP MORRIS INTERNATIONAL 2.2 %
HOME DEPOT INC 2.1 %
ELI LILLY & CO 1.8 %
Total 28.5 %

TOP COUNTRY EXPOSURE
UNITED STATES 95.5 %
IRELAND 2.0 %
CANADA 0.5 %
BERMUDA 0.4 %
BRITAIN 0.3 %






HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru January 31)
Year-to-date 1 year 5 years 10 years Since Incep.
-1.6% 14.8% 9.9% -- 13.1%

Market Correlations
versus... Beta R-squared
S&P500 0.88 94%
MSCI EAFE 0.80 64%
MSCI Emg. Mkts. 0.52 48%

Technical Indicators
Recent close $48.63
30d moving avg. $48.17
Annualized volatility 10.9%
Short interest (ETF) 0.2%
Short interest (Underlying) 3.6%
Relative strength (RSI) 57

Liquidity measures
Avg. volume (thou.) 40
Turnover 0.4%
Bid/Ask (% of price) 0.04%
ADV underlying (mns) $58,600

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the FlexShares Quality Dividend Defensive ETF based on the alternatives' overlap in portfolio holdings with QDEF. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker: QDEF Expense: 37 bp ALTAR Score™: 6.2%


ALTERNATIVE ETFs BASED ON OVERLAP WITH QDEF
Ticker Fund
Name
Overlap1
vs QDEF
(%)
Expense
ratio
(bp)
Savings
vs QDEF
(bp)
ALTAR
Score™
(%)
ALTAR
vs QDEF
(%)
QDF FlexShares Quality Dividend 56.5 37 0 7.2 +1.0
QDYN FlexShares Quality Dividend Dynamic 49.9 37 0 7.0 +0.9
DLN WisdomTree Large Cap Dividend 47.7 28 9 6.4 +0.3
DTD WisdomTree Total Dividend 44.8 28 9 6.6 +0.4
OUSA O'Shares FTSE U.S. Quality Dividend 44.4 48 -11 5.9 -0.3
OVOL Invesco Russell 1000 Low Volatility Factor ETF 43.7 19 18 6.6 +0.4
OYLD Invesco Russell 1000 Yield Factor ETF 43.6 19 18 7.4 +1.2
DGRO iShares Core Dividend Growth 43.4 8 29 6.3 +0.2
FDRR Fidelity Dividend for Rising Rates 43.0 29 8 7.3 +1.1
VYM Vanguard High Dividend Yield ETF 42.1 6 31 7.1 +1.0
DIVB iShares U.S. Dividend & Buyback 41.1 25 12 6.6 +0.5
USMC Principal U.S. Mega-Cap Multi-Factor Index 39.1 12 25 5.2 -0.9
EPS WisdomTree Earnings 500 38.4 8 29 6.7 +0.6
OEF iShares S&P 100 38.1 20 17 5.2 -0.9
USDY Pacific Global US Equity Income 38.1 29 8 7.5 +1.3
XLG Invesco S&P Top 50 37.8 20 17 4.9 -1.3
FDVV Fidelity Core Dividend 37.3 29 8 6.9 +0.7
QUS SPDR MSCI USA Quality Mix 37.2 15 22 5.7 -0.5
SCHV Schwab U.S. Large-Cap Value 36.8 4 33 6.9 +0.7
FNDX Schwab Fundamental Large Cap 36.8 25 12 5.5 -0.6

1Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

Content on this tab for subscribers only**

RESULTS & ESTIMATES

  2015 2016 2017 2018 2019 2020E 2021E
Sales per share ** ** ** ** ** ** **
Earnings per share ** ** ** ** ** ** **
Dividends per share info ** ** ** ** ** ** **
Book value per share ** ** ** ** ** ** **

 

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est. **%   Debt-to-equity **x
Asset turnover **%   Assets-to-equity **x

Return on equity

Revision activity*
*Six months ago = 100

Net margins

Compound annual growth rates

Content on this tab for subscribers only

VALUATION METRICS
  2019 2020E 2021E
Price-to-sales ** ** **
Price-to-earnings ** ** **
Price-to-cash flow ** ** **
Price-to-growth ** ** **
Price-to-book value ** ** **
Yield ** ** **

Historical valuation trends

Forward
multiple:
FlexShares Quality Dividend Defensive
Relative
to:
S&P500 MSCI EAFE MSCI Emg. Mkts. Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™


Calculation of ALTAR Score™
Avg. Return on Equity 19.1 %
Divided by: Fwd. P/BV 2.9 x
Less: Expense ratio 37 bp
Equals: ALTAR Score 6.2 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.62 CATEGORY
AVERAGE
1.56
 
The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale:

BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3.

Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.