QDEF - ETF AI Analysis

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FlexShares Quality Dividend Defensive Index Fund (QDEF)

Rating:74Outperform

Price Target:

$90.00

The FlexShares Quality Dividend Defensive Index Fund (QDEF) demonstrates strong overall performance, driven by high-quality holdings like Microsoft and Nvidia. Microsoft contributes positively with its robust growth in cloud and AI services, supported by strategic investments, while Nvidia benefits from its leadership in AI infrastructure and impressive revenue growth. However, weaker holdings such as JPMorgan Chase, which faces credit cost risks and cash flow challenges, slightly weigh on the fund's rating. A potential risk for the ETF is its concentration in technology-focused companies, which could expose it to sector-specific volatility.

Positive Factors

Strong Top Holdings

Several key holdings, including Nvidia, Broadcom, and Microsoft, have shown strong year-to-date performance, supporting the ETF's overall returns.

Sector Diversification

The ETF is spread across multiple sectors, with significant exposure to Technology, Health Care, and Financials, reducing reliance on any single industry.

Reasonable Expense Ratio

With a relatively low expense ratio of 0.37%, the fund offers cost efficiency compared to many actively managed alternatives.

Negative Factors

High Technology Concentration

Over 33% of the portfolio is allocated to Technology, making the fund vulnerable to downturns in this sector.

Limited Geographic Exposure

The ETF is entirely focused on U.S. companies, which limits diversification across global markets.

Underperforming Holding

Procter & Gamble, one of the top holdings, has shown negative year-to-date performance, slightly dragging on overall returns.

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

AUM476.68M

RegionNorth America

Expense Ratio0.37%

Beta0.76

IssuerFlexShares

Inception DateDec 14, 2012

Dividend Yield1.66%

Asset ClassEquity

Index TrackedNorthern Trust Quality Dividend Defensive (TR)

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume10,649

30 Day Avg. Volume8,319

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

91.40

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering127

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

QDEF Summary

The FlexShares Quality Dividend Defensive Index Fund (QDEF) is an ETF that focuses on high-quality companies paying consistent dividends, making it a good option for investors seeking steady income and stability. It tracks the Northern Trust Quality Dividend Defensive Index and includes well-known companies like Apple and Nvidia. This fund emphasizes defensive stocks, meaning it prioritizes financially strong companies that can perform well even in uncertain markets. Someone might invest in QDEF to balance growth and income while reducing risk. However, since it heavily invests in technology stocks, its performance could be affected if the tech sector faces challenges.

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

The FlexShares Quality Dividend Defensive Index Fund (QDEF) leans heavily into technology, with giants like Apple and Nvidia driving much of its recent performance thanks to their strong financials and focus on AI innovation. Microsoft and Broadcom have also contributed steady gains, bolstered by growth in cloud services and AI semiconductors, respectively. However, consumer staples like Procter & Gamble are lagging, weighed down by macroeconomic challenges and slowing growth. With a clear U.S. focus and a tilt toward defensive dividend-paying stocks, QDEF offers stability but remains concentrated in tech-heavy names that dominate its top holdings.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
AAPL	Apple	8.06%	$37.72M	$3.99T	18.75%	80 Outperform
NVDA	Nvidia	6.88%	$32.19M	$4.74T	26.33%	85 Outperform
AVGO	Broadcom	5.41%	$25.33M	$1.70T	93.46%	76 Outperform
MSFT	Microsoft	5.18%	$24.24M	$3.77T	16.85%	82 Outperform
ABBV	AbbVie	3.02%	$14.13M	$383.12B	9.24%	62 Neutral
JNJ	Johnson & Johnson	2.90%	$13.58M	$448.13B	19.29%	78 Outperform
PG	Procter & Gamble	2.49%	$11.66M	$340.67B	-10.57%	74 Outperform
JPM	JPMorgan Chase	2.13%	$9.96M	$848.47B	32.59%	72 Outperform
GOOGL	Alphabet Class A	2.00%	$9.36M	$3.43T	57.54%	80 Outperform
PM	Philip Morris	1.88%	$8.78M	$231.01B	21.10%	62 Neutral

QDEF Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

79.41

Negative

100DMA

77.32

Positive

200DMA

73.52

Positive

Market Momentum

MACD

0.13

Positive

RSI

44.38

Neutral

STOCH

9.53

Positive

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For QDEF, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 79.80, equal to the 50-day MA of 79.41, and equal to the 200-day MA of 73.52, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 44.38 is Neutral, neither overbought nor oversold. The STOCH value of 9.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for QDEF.

QDEF Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
QDEF	―	―	$476.68M	0.37%	74 Outperform
FNDB	―	―	$996.77M	0.25%	72 Outperform
SYLD	―	―	$868.13M	0.59%	67 Neutral
PLDR	―	―	$832.76M	0.60%	73 Outperform
AUSF	―	―	$809.79M	0.27%	70 Outperform
ABFL	―	―	$737.25M	0.49%	71 Outperform

Performance Comparison

QDEF

FlexShares Quality Dividend Defensive Index Fund

79.22

7.52

10.49%

FNDB

Schwab Fundamental US Broad Market Index ETF

―

SYLD

Cambria Shareholder Yield ETF

―

PLDR

Putnam Sustainable Leaders ETF

―

AUSF

Global X Adaptive U.S. Factor ETF

―

ABFL

Fcf Us Quality 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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