QDEF - ETF AI Analysis

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FlexShares Quality Dividend Defensive Index Fund (QDEF)

Rating:74Outperform

Price Target:―

QDEF’s rating suggests it is a solid, quality-focused dividend fund, supported by major holdings like Microsoft, Apple, and Alphabet, which benefit from strong financial performance, growth in cloud and AI, and generally positive technical trends. These strengths are partly offset by weaker elements in holdings such as Philip Morris and AbbVie, where leverage, financial stability concerns, and valuation issues weigh on their outlooks. The main risk factor is the fund’s meaningful exposure to large technology names, which can introduce volatility and sensitivity to shifts in tech valuations.

Positive Factors

Large, Established U.S. Companies

The fund is almost entirely invested in U.S. stocks, many of which are well-known, mature businesses that tend to be more stable than smaller or less established firms.

Sector Diversification

Holdings are spread across many sectors, including technology, health care, financials, and consumer stocks, which helps reduce the impact if any one industry struggles.

Defensive Dividend Focus

The fund targets quality dividend-paying companies, which can provide a steadier income stream and may help cushion volatility compared with more aggressive growth strategies.

Negative Factors

Heavy Tilt Toward Technology

A large portion of the portfolio is in technology stocks, so the fund could be hit hard if that sector experiences a downturn.

Weak Recent Performance in Key Holdings

Several of the largest positions, including major technology names, have shown weak performance so far this year, which has weighed on the fund’s overall returns.

Single-Country Concentration

With virtually all assets in U.S. companies, the fund offers little geographic diversification and is highly exposed to the U.S. economy and market conditions.

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

AUM504.70M

RegionNorth America

Expense Ratio0.37%

Beta0.76

IssuerFlexShares

Inception DateDec 14, 2012

Dividend Yield1.7%

Asset ClassEquity

Index TrackedNorthern Trust Quality Dividend Defensive (TR)

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume12,336

30 Day Avg. Volume12,412

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

95.86

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering128

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

QDEF Summary

QDEF is an ETF that follows the Northern Trust Quality Dividend Defensive Index, focusing on U.S. companies that pay steady dividends and are considered financially strong. It holds many well-known names like Apple and Microsoft, along with health care, financial, and consumer companies, giving you broad exposure to the overall market. Someone might invest in QDEF to seek a mix of income from dividends and potential long-term growth, with a tilt toward more stable businesses. A key risk is that it is heavily invested in U.S. stocks and tech, so its value can still go up and down with the 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 U.S. mega-cap tech, with Apple, Microsoft, Nvidia, and Broadcom forming the engine room—but lately that engine has been sputtering, as these chip and software giants have been more mixed than mighty. Offsetting that, steadier dividend names like Johnson & Johnson and Procter & Gamble have been quietly keeping the ship upright, while Philip Morris adds a defensive, cash-generating tilt. Overall, the fund is U.S.-centric, tech-heavy, and relying on classic defensive stalwarts to cushion Big Tech’s recent soft patch.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
AAPL	Apple	7.44%	$37.32M	$3.76T	4.57%	79 Outperform
NVDA	Nvidia	6.30%	$31.63M	$4.44T	31.66%	76 Outperform
AVGO	Broadcom	4.49%	$22.53M	$1.54T	39.53%	76 Outperform
MSFT	Microsoft	3.90%	$19.58M	$2.98T	-1.74%	79 Outperform
JNJ	Johnson & Johnson	3.58%	$17.94M	$586.69B	55.91%	78 Outperform
ABBV	AbbVie	3.02%	$15.14M	$409.15B	20.03%	66 Neutral
PG	Procter & Gamble	2.80%	$14.06M	$372.00B	-1.73%	69 Neutral
PM	Philip Morris	2.22%	$11.12M	$291.89B	24.62%	61 Neutral
GOOGL	Alphabet Class A	2.17%	$10.89M	$3.70T	65.05%	85 Outperform
JPM	JPMorgan Chase	1.96%	$9.82M	$823.62B	9.38%	72 Outperform

QDEF Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

81.85

Positive

100DMA

80.64

Positive

200DMA

77.23

Positive

Market Momentum

MACD

0.52

Negative

RSI

53.19

Neutral

STOCH

49.09

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 82.62, equal to the 50-day MA of 81.85, and equal to the 200-day MA of 77.23, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 53.19 is Neutral, neither overbought nor oversold. The STOCH value of 49.09 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
QDEF	―	―	$504.70M	0.37%	―
SYLD	―	―	$946.12M	0.59%	―
AUSF	―	―	$816.93M	0.27%	―
ABFL	―	―	$815.56M	0.49%	―
PLDR	―	―	$813.93M	0.59%	―
PFM	―	―	$767.53M	0.52%	―

Performance Comparison

QDEF

FlexShares Quality Dividend Defensive Index Fund

82.90

11.64

16.33%

SYLD

Cambria Shareholder Yield ETF

―

AUSF

Global X Adaptive U.S. Factor ETF

―

ABFL

Fcf Us Quality Etf

―

PLDR

Putnam Sustainable Leaders ETF

―

PFM

Invesco Dividend Achievers 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.

Disclaimer

This 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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