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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, the FlexShares Quality Dividend Defensive Index Fund, earns a solid overall rating thanks to its large positions in high-quality tech leaders like Apple, Microsoft, and Alphabet, which benefit from strong financial performance, growth in cloud and AI, and generally positive technical trends. These strengths are supported by stable blue-chip names such as Johnson & Johnson and Cisco, though some holdings like AbbVie and Procter & Gamble face valuation concerns, financial stability questions, or bearish technical signals that slightly weigh on the fund. The main risk factor is its meaningful concentration in richly valued technology and AI-related companies, which could be vulnerable if growth expectations or market sentiment weaken.
Positive Factors
Strong Recent Performance
The fund has delivered solid gains over the year so far, supported by steady results in recent months.
High-Quality Tech Leaders
Several of the largest technology holdings, such as major chip and software companies, have shown strong performance and helped drive returns.
Defensive Sector Mix
Meaningful exposure to health care, consumer defensive, and utilities stocks adds a defensive tilt that can help cushion market downturns.
Negative Factors
Heavy Technology Concentration
With a large share of assets in the technology sector, the fund is sensitive to swings in tech stocks.
Single-Country Exposure
Almost all of the fund’s holdings are in U.S. companies, offering little diversification across global markets.
Moderate Expense Ratio
The fund’s fees are not especially low, which can slightly reduce long-term returns compared with cheaper ETFs.

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

QDEF Summary

QDEF, the FlexShares Quality Dividend Defensive Index Fund, follows the Northern Trust Quality Dividend Defensive Index, focusing on U.S. companies that pay steady dividends and have strong finances. It holds many well-known names like Apple and Microsoft, with a big tilt toward technology but also exposure to health care, financials, and consumer companies. Investors might consider QDEF if they want a mix of income from dividends and potential long-term growth in a single, diversified fund. A key risk is that it is heavily invested in tech stocks, so its price can rise and fall sharply with the tech sector and overall stock market.
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 Big Tech, with Apple and Nvidia acting as the main engines of performance. Apple has been steadily rising, giving the fund a solid anchor, while Nvidia and Broadcom show more mixed momentum as semiconductor enthusiasm cools and heats in waves. Microsoft and Alphabet have recently been lagging, so their once-dominant pull is losing a bit of steam. On the defensive side, health care names like AbbVie and Johnson & Johnson, along with consumer staple Procter & Gamble, provide a steadier ballast. Overall, it’s a U.S.-centric, tech-tilted dividend play that mixes growth drivers with classic defensive brands.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Apple9.01%$48.97M$4.90T52.64%
79
Outperform
Nvidia6.24%$33.92M$4.72T15.56%
76
Outperform
Broadcom4.67%$25.38M$1.85T34.87%
76
Outperform
Microsoft3.94%$21.42M$3.35T-11.33%
79
Outperform
AbbVie3.12%$16.97M$454.79B28.54%
66
Neutral
Johnson & Johnson2.77%$15.04M$616.50B53.20%
78
Outperform
Procter & Gamble2.35%$12.75M$335.23B-4.09%
69
Neutral
Alphabet Class A2.30%$12.48M$4.08T88.30%
85
Outperform
Cisco Systems2.23%$12.12M$447.59B72.84%
77
Outperform
JPMorgan Chase2.11%$11.48M$940.11B21.57%
72
Outperform

QDEF Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
87.35
Positive
100DMA
84.95
Positive
200DMA
82.86
Positive
Market Momentum
MACD
RSI
STOCH
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 88.23, equal to the 50-day MA of 87.35, and equal to the 200-day MA of 82.86, indicating a bullish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, 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
$546.82M0.39%
74
Outperform
$911.59M0.27%
71
Outperform
$900.37M0.18%
71
Outperform
$887.48M0.50%
76
Outperform
$873.36M0.15%
73
Outperform
$808.32M0.45%
74
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
QDEF
FlexShares Quality Dividend Defensive Index Fund
88.87
14.33
19.22%
AUSF
Global X Adaptive U.S. Factor ETF
VFMF
Vanguard U.S. Multifactor ETF
HLAL
Wahed FTSE USA Shariah ETF
FDMO
Fidelity Momentum Factor ETF
BGDV
Bahl & Gaynor Dividend 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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